Africa Oil Corp (AOIFF)

[Northsun0]

RBC Capital Markets

We anticipate reserves updates from DNO International and Africa Oil in Q2/14, which are likely to affect the stocks and their respective partners Genel Energy and Tullow Oil. We expect Africa
Oil, Amerisur Resources, Ophir Energy, Parex Resources, and Tullow Oil to continue to generate exploration drilling headlines, and given that we believe the market is pricing in little or nothing
for exploration, these stocks could surge on positive newsflow. Amerisur Resources should also deliver progress on the key new pipeline.

Key wells drilling

Africa Oil (AOI.V): Appraisal activity continues apace in Kenya at the Twiga South-2 appraisal well (+C$0.14/- C$0.21) on Block 13T that is currently drilling and could add ~30mmbbl of resource to the Twiga discovery. In April, we expect Africa Oil to conclude the drilling of the high-risk high-reward Sala-1 wildcat (+C$3.31/-C$0.37) on Block 9 in Kenya’s Anza Graben, and complete production tests on the peripheral El Kuran-3 well (+C$0.78/-C$0.14) in the Ogoden Basin of eastern Ethiopia.