Africa Oil Corp (AOIFF)

[manuel06]

Africa Oil Corp. (AOI), a Lundin company, lost 13 cents to $2.51 on 95,000 shares. It has moved up from around $1.90 over the last three months as it proceeds with its four- to eight-well drill program in Kenya's South Lokichar basin, where it owns assets with Tullow Oil and Maersk Oil. The assets are still in the resource-definition phase, but the joint venturers are hoping to start a production pilot as early as June, according to Tullow. A spokesman for Tullow, Dennis Okore, told CGTN Africa (part of China Global Television Network) earlier this month that the pilot will be an "enabler of full-field development" that will allow the joint venturers to firm up commercial, infrastructure and engineering details as they work with the Kenyan government on a planned export pipeline. Separately, the Kenyan government told The East African (a local news outlet) last week that samples from the South Lokichar basin have been delivered to refiners, and the refiners liked them. "European and Asian refiners have been receptive to our oil since it has low sulphur content," Andrew Kamau, an official at the Ministry of Energy and Petroleum, was quoted as saying. The low sulphur content should make refining easier. The oil is classified as light and sweet, and is expected to fetch prices in line with Brent. The joint venturers' pilot project will aim to produce 2,000 barrels a day and, as noted above, is expected to start operations in June.
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