Africa Oil (“Africa Oil” or the “Company”) (TSX:AOI)(OMX:AOI) is pleased to announce its financial and operating results for the three months and year ended December 31, 2016. At December 31, 2016, the Company had cash of $463.1 million and working capital of $435.0 million. The Company’s liquidity and capital resource position improved dramatically during 2016 with the receipt of $439.4 million (inclusive of deposit received prior to 2015 year-end) upon completion of the farmout transaction with Maersk Olie og Gas A/S (“Maersk”) whereby Maersk acquired 50% of the Company’s interests in Blocks 10BB, 13T and 10BA in Kenya and the Rift Basin and South Omo Blocks in Ethiopia.
As quoted in the press release:
“During the fourth quarter of 2016, Tullow Oil, Maersk, and Africa Oil (the “Joint Venture Partners”) recommenced drilling activities in the South Lokichar oil basin located in Blocks 10BB and 13T in Kenya. One drilling rig is currently active and is undertaking an initial program of four wells and the potential to extend this by a further four wells. The first well in the drilling program, Erut-1 (Block 13T) resulted in a discovery of a gross oil interval of 55 meters with 25 meters of net oil pay at a depth of 700 meters. The overall oil column for the field is between 100 and 125 meters. Potential exists for additional pay but will need to be confirmed by laboratory analysis.”