VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 23, 2014) - Africa Oil Corp. ("Africa Oil" or the "Company") (AOI.TO)(AOI.ST) provides an update on the Shimela-1 well drilled in the South Omo Block, onshore Ethiopia.
The well reached a final depth of 1,940 metres and encountered water bearing reservoirs. Shimela-1 was drilled to test a prospect in a north-western sub-basin of the vast Chew Bahir basin. The frontier wildcat well encountered lacustrine and volcanic rocks including almost 100 metres of net sandstone reservoir within siltstones and claystones. Trace thermogenic gas shows were recorded at 1,900 metres.
The Exalo 205 rig which drilled Shimela-1 will now be moved to drill the Gardim-1 wildcat exploration well in a completely separate sub-basin, in the south-eastern corner of the Chew Bahir basin.
Africa Oil holds a 30% interest in the South Omo Block. Operator Tullow Oil plc holds a 50% interest and Marathon Oil Ethiopia Limited B.V., a wholly owned subsidiary of Marathon Oil Corporation (MRO), holds 20%.
Keith Hill, President and CEO, commented, "While we are disappointed that this well discovered only minor gas shows, we still believe there is significant potential in the Ethiopian portion of the rift and will continue efforts to explore not only the remainder of this block but also the Rift Basin Area where oil seeps and source rocks in outcrop demonstrate a working petroleum system."
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya and Ethiopia as well as Puntland (Somalia) through its 45% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 215,000 square kilometres. The East African Rift Basin system is one of the last of the great rift basins to be explored. Seven new significant discoveries have been announced in the Northern Kenyan basin in which the Company holds a 50% interest along with operator Tullow Oil plc. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".
FORWARD-LOOKING INFORMATION
Certain statements made and information contained herein constitute "forward-looking information" (within the meaning of applicable Canadian securities legislation). Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities. Forward-looking statements include, but are not limited to, statements with respect to estimates of reserves and or resources, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities, ultimate recovery of reserves or resources and dates by which certain areas will be explored, developed or reach expected operating capacity, that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.