Africa Energy Corp (HPMCF)

[dat_51or]

As most of you know, Horn is partly owned by AOI, who is partnered with Tullow in Kenya.

Here's a translated article mostly on TW and AOI in Kenya, but note the references to Norn's second, Shabeel North at the end of the article.

Sounds like we may be getting sort of regular drilling updates?

dat

AFRICA OIL: UNAFFECTED by 20%-agreement in KENYA-IR (direct)
2012-06-27 11:23



STOCKHOLM (direct) To Kenyan Turkanas municipality councils according to media information has agreed with the Kenyan central Government about a 20% royalty distribution on any future oil revenues affects not Africa Oils or operator, Tullow oil's share payment to the Kenyan Government.
It says Africa Oil spokesman Robert Eriksson to news agency directly.

"The majority of revenues stay with the Kenyan Government, how it chooses to distribute their income is up to it. But we welcome the fact that a settlement seems to have been reached with the region of Turkana district. However, does not affect us because we have our binding legal agreement on how much we are paying to the Kenyan Government, "says the spokesperson.

Robert Eriksson says further media information that a member of Parliament from Turkana region would call into question how the selling process of licence 10BB, where the well Ngamia-1 is located, went to Africa in 2010 when the Oil would have bought the license for 10 million dollars.

"It may refer to the honourable Member, but we have a very solid legally binding agreements which we feel very secure with," says Robert Eriksson.

A final update on the drilling of the well Ngamia-1, in which case the depth is 2.700 metres, is expected within a week.

"That information is expected within a week," says Robert Eriksson.
Later in July is expected to even a reserve judgement about the Kenyan deposit from third parties according to the spokesperson.

As regards the ongoing drilling in brunnen Shabeel North, in Puntland, Somalia, it is quite possible that the operator Horn Petroleum where Africa Oil is the majority owner, along with other partners, will continue with regular updates on how well the progress of, discloses Robert Eriksson.
Last week came an update about the Somali drilling had reached just under 1,000 meters on its way to the target depth of 2.400 meters.


Henrik Svensson + 46 8 5191 7924
The News Agency Of Direct

https://www.avanza.se/aza/press/news.jsp?fromPage=newsModule&newsArticleId=N1912341

[RobinT]

$HPMCF. THANKS FOR PRESENTATION POST. GOOD INFO.

[futrcash]

Horn's Last Corporate Presentation-

http://www.hornpetroleum.com/i/pdf/2012-04_HRNP.pdf

futr

[futrcash]

Shabeel North will be flow tested immediately-

And seeing as how it was spudded on June 6th with an estimated drill time of 45-60 days-

We should know a lot by the first week of August!

It is also important to note that given the Jessoma discovery in the first well, the second well will be drilled with smaller casing to ensure that open hole testing can be undertaken with the equipment already on site.

http://www.rangeresources.com.au/fileadmin/user_upload/asx/ASXAnnouncement_Puntland_Update_Shabeel_North_Spuds.pdf

futr

[korpin]

security measures glad I am not one of those young men with an AK walking around in sandals right now:

http://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31145375&l=0&r=0&s=HRN&t=LIST)

[abbam]

ok, thank you will do some DD

[dat_51or]

Horn is the operator of two Puntland/Somolia oil exploration blocks. Horn has two partners (Range and Red Emporer), each owning 20%, and Horn owns 60%.

AOI owns 51% of Horn, (or put in another way, 30% of the two blocks).

So far one well has been drilled and oil discovered. This is very good news, but wasn't well received by some speculative owners and the share price dropped. While testing still needs to be done, AOI's pres thinks there is a 70% chance of commercial quantities. IMO confidence that this will flow commercial is pretty darn good.

A second well was spud today and should be done in 45-60 days. This well may have deeper pay zones and hopefully more oil.

Horn is a very promising invenstment that could end up owning 200 million + barrels of oil net, worth $5-$10/barrel by the end of the summer, with much more ground to explore and drill.

Do your own DD, but IMO, it is a buy and hold for 1-2 years.

dat

[abbam]

so horn is 60% of some wells of africa oil ?

then this should be good investment also ?

[dat_51or]

AFRICA OIL ANNOUNCES SPUD OF SHABEEL NORTH WELL

IN PUNTLAND, SOMALIA



June 5, 2012 (AOI–TSXV, AOI–NASDAQ OMX) … Africa Oil Corp. (“Africa Oil” or the “Company”) is pleased to announce the commencement of drilling operations on the Shabeel North well in Puntland, Somalia, the second well in the current drilling campaign. The well is being operated by Horn Petroleum Corp. (“Horn”) in which Africa Oil holds an interest of approximately 51%. Horn holds a 60% working interest in the Dharoor and Nugaal Valley Production Sharing Agreements (“PSA’s”) along with working interest partners Range Resources (20%) and Red Emperor (20%).



The Shabeel North well is targeting Upper Cretaceous Jesomma sands which had good oil and gas shows in the Shabeel well 3.5 kilometers to the south. Petrophysical analysis of downhole electrical logs in the Shabeel well indicated a potential pay zone in the Jesomma of up to 12 to 20 meters with an average porosity of 18 to 20%. It is planned to bring the rig back to the Shabeel location to test these sands to confirm their ability to flow oil once the drilling of the Shabeel North well is completed. The planned TD of the Shabeel North well is 2400 meters and drilling is expected to take 45 to 60 days to complete.



Horn President and CEO David Grellman stated, “The Shabeel North well will test the same reservoirs that appear to be oil bearing in the nearby Shabeel well. We would expect similar or better reservoir thickness and quality as we move deeper into the basin. The results of this well should help us confirm the extent of the petroleum system in the basin and, if successful, would be another step towards proving the economic potential of the basin.”



Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya, Ethiopia andMali as well as Puntland (Somalia) through its 51% equity interest in Horn Petroleum Corporation. Africa Oil's East African holdings are in within a world-class exploration play fairway with a total gross land package in this prolific region in excess of 300,000 square kilometers. The East African Rift Basin system is one of the last of the great rift basins to be explored. New discoveries have been announced on all sides of Africa Oil's virtually unexplored land position including the major Albert Graben oil discovery in neighbouring Uganda. The Company is listed on the TSX Venture Exchange and on First North at NASDAQ OMX-Stockholm under the symbol "AOI".



ON BEHALF OF THE BOARD



“Keith C. Hill”

President and CEO

[korpin]

never mind I have dilexia....numbers,letters,even poles get mixed

[korpin]

on the audio of keith hill,he talk about the "north sea basin" is this the falkland island??

[dat_51or]

A Puntland Pipeline - Keith Hill and Peter Landau

Drilling partner Range Resources has announced confidence in its Puntland oil and gas exploration project in the Dharoor Valley Basin earlier this week, citing that a commercial discovery is highly likely.

In an interview with OpenBriefing.com, Range’s managing director Peter Landau had this to say about Puntland. The same sentiments were also echoed by Keith Hill of Africa Oil, whose company was a joint explorer in the recent discovery of oil in Kenya’s Turkana County.

If the Shabeel-1 well successfully flows and the Shabeel North well delivers to current expectations, we would have discovered between 170 to 280mm barrels of recoverable oil in our first two wells (with 34 to 56mm barrels attributable to Range) with the remainder of the basin still to be tested. Investors must also remember the well’s proximity to the coast (approx 60 km) and the relative ease of constructing a pipeline to an offshore loading facility based on a commercial discovery.

This coincides with earlier speculation of a pipeline ending in Bosaso. Already an oil storage facility has been constructed on the beachfront of Bosaso, and continues to undergo construction. The bulk of the construction began in 2005 when Range Resources first expressed interest in Puntland. It was the first construction of a petroleum facility in post-war Somalia, and to date the only project of its kind.

To be talking of a pipeline this early in the process is very telling of the level of confidence in the wells, estimated to have a 75% success rate by Keith Hill.

Spudding of the anticipated Shabeel-North well is expected to occur in the next two to three weeks, and should be completed by the middle of August, after which both wells will be tested for quantity.

-- posted by Skier58 on SH.


I believe that keith Hill said earlier this week that with a pipeline built that our oil could be worth $10/barrel. So far AOI has used $4.23/ barrel for Kenya values, which are based on Uganda asset sales. IMO great news to hear that they are serious about this pipeline. I sure like $10/barrel.

Let's do some fun numbers...Landau in that same interview said

“If the Shabeel-1 well successfully flows and the Shabeel North well delivers to current expectations, we would have discovered between 170 to 280mm barrels of recoverable oil in our first two wells (with 34 to 56mm barrels attributable to Range) with the remainder of the basin still to be tested. Investors must also remember the well’s proximity to the coast (approx 60 km) and the relative ease of constructing a pipeline to an offshore loading facility based on a commercial discovery.

Let's take middle of the road estimates for the first two wells only.

225 mm barrels of recoverable oil x .60 for Horn's 60% share = 135 million barrels net to Horn. 75 mm x $10/ barrel value = $750 million of value. On a per share basis won't we have about 145 million shares outstanding after the two phases of warrants are excercised? (this is off the top of my head). Anyway, take $1,350 million /145 million shares and you get....about $9/share. Now there are many ifs in this scenario and more $ investment needed, but Wow...the potential is strong IMO. And further, this is only based on two wells. There's more to drill in Shabeel and we have an unexplored block at Nugaal with something like 2 billion barrell estimate, pre-drill.

Let's see how Shabeel North does first... and what the company will do with the $15 million from the recently announced private placement. I agree with the speculation that Marauder might be the target. TheirPuntland block sets just off shore from our first two wells. IMO a nice fit being its the same geology.

Last I'd remind us all that the stated purpose of Horn is to find oil and sell to majors, probably before a piepline is built. The top priority then is to keep the drill bit running and prove up our licenses, then cash out.

Go Horn, Go AOI...

Happy Memorial Weekend.

dat

[korpin]

I ventured a few thousand at these prices seems the maket over reacted to the first well...

[dat_51or]

sorry, double post. EOM

[dat_51or]

Fox Davis is a brokerage that has placed RMP shares. Here's a good write up on Shabeel and Shabeel North.

http://www.fox-davies.com/media/31209/rmplnflashnote170512.pdf

[dat_51or]

Horn's JV partner, Red Emperor, has just stepped up to participate in the Shabeel North well and have issued this press release. Notice the last paragraph, where Shabeel is estimated to have 300 million barrels and Shabeel North 375 mmb.

Spudding in the first week of June.

dat

21 May 2012

Red Emperor Resources NL

("Red Emperor" or "the Company")

Shabeel North - Exercise of Option to Participate

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is pleased to announce that it
has, today, exercised its option to participate in the drilling of the Shabeel
North well, schedule to be spud in the first week of June.

As a result of this election to participate, Red Emperor maintains its 20%
Participating Interest in each of the Dharoor Valley and Nugaal Valley PSA's.

Red Emperor has always had an option, not an obligation, to participate in
Shabeel North and has now received Final Well Logs in relation to the recently
drilled Shabeel-1 well. After reviewing these logs and in light of the
significant discovery made by the Joint Venture in the Jesomma sands of
Shabeel-1, the board has no hesitation in participating in Shabeel North and
has advised Africa Oil Corp. accordingly.

Red Emperor has been paying preliminary costs associated with the preparation
of drilling Shabeel North and these costs can now be applied towards its cash
call commitments.

On 17 May 2012, Red Emperor announced the discovery of a 12 - 20m zone of
significant hydrocarbon pay in the Upper Cretaceous Jesomma Formation of the
Shabeel-1 well. This discovery will be flow tested after drilling the Shabeel
North well as the perforating equipment required to test this zone is currently
being shipped to site.

The rig is currently moving to the Shabeel North location, 3.5km north of
Shabeel-1, with spudding scheduled for the first week of June 2012. The primary
objective of this well will be to evaluate the Upper Cretaceous Jesomma Sands
that have been oil-bearing at the Shabeel-1 location.

Greg Bandy, Managing Director of Red Emperor, commented, "We are delighted to
announce that we are participating in the second Puntland exploration well and
as a result maintaining our 20% interest in this historical Joint Venture. We
were very encouraged by the results of the Shabeel-1 well that have confirmed
oil-bearing sands in two zones. This discovery has very positive implications
for the prospectivity of the basin. We look forward to the results of the
Shabeel North well and to testing the Jesomma sands to confirm the potential of
the block."

For further information please visit www.redemperorresources.com or contact:

Red Emperor
Greg Bandy [phone]
Rebecca Sandford [phone]

Cairn Financial Advisers LLP (Nominated Adviser)
Jo Turner [phone]
Tony Rawlinson

Fox-Davies Capital Limited (Joint Broker)
Daniel Fox-Davies [phone]
Richard Hail

Old Park Lane Capital plc (Joint Broker)
Luca Tenuta [phone]
Michael Parnes

Tavistock Communications
Paul Youens [phone]
Ed Portman

Background

Red Emperor Resources NL (ASX: RMP | AIM: RMP) is a natural resources
exploration company with interests in the frontier state of Puntland, Somalia
and the Republic of Georgia.

* In Puntland, Red Emperor holds a 20% working interest in two licences
encompassing the highly prospective Dharoor and Nugaal valleys. These two
exploration areas cover over 36,000km2. The operator and 60% interest
holder, Horn Petroleum Corp. (TSXV: HRN) has completed the first well
(Shabeel-1) in a two well program and is now moving the rig to the second
well (Shabeel North). The two wells are targeting 300mmbls and 375mmbbls of
best estimate Prospective Resources (100% basis). All site construction and
preparation work has been completed on the second well and is now in
readiness to accept the rig and begin drilling.

[dat_51or]

Much good info in this CEO brief from Range Resources.
Encouraging....

dat

http://www.openbriefing.com/AsxDownload.aspx?pdfUrl=Report%2FComNews%2F20120518%2F01298725.pdf

[abbam]

hmm. nice drop today. wonder what happened

[Kiyomitsu]

Oil from Puntland

Its President Abdirahman Mohamed Mohamud Farolez on Wednesday held talks in New Delhi on the recent find in Puntland of large quantity of oil.


http://www.thehindu.com/news/national/article3426317.ece

[jubbyjubber]

Ouch!

[dat_51or]

Here's the 2007 Competent Persons Report for Range Resources and AOI on the Nogal basin. Again thanks to posters CJ and others on the iii board.
dat

http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/Competent_Persons_Report___Sproule_International_Limited.pdf

[dat_51or]

Below you'll see links to three Range Resources document from the mid 1990s that summarize and map a lot of the results from Conoco's oil exploration in Nogal. It's must read info, IMO and to sum up, they had success in two wells drilled years ago.

Thanks to poster Warnadol from the iii board.


Re: Slide 9 (section 855 to 1,500mtrs) Warnado1 1

CJ, I have previously tried to find the well logs of Nogal and Kalis without any luck. The best I have is the following links.


http://www.rangeresources.com.au/fileadmin/user_upload/asx/ASX_Announcement_-_Conoco_Data_interpretation__23-11-2006_.pdf


http://www.rangeresources.com.au/fileadmin/user_upload/asx/ASX_Announcement-_Puntland_Oil_and_Gas__01-12-05_.pdf


http://www.energy-pedia.com/news/somalia/range-resources-discovers-1990s-drilling-data

[dat_51or]

Promising news on Horn's first well from RNP, one of our partners.

http://www.asx.com.au/asxpdf/20120514/pdf/4267p8dt6fv036.pdf

Shabeel-1 well currently being drilled in Puntland by the Joint Venture
partner and operator, Horn Petroleum Corp. (TSXV: HRN) is drilling ahead at a
current depth of 3,425m (as at 13 May 2012).

A gross section of 150m of oil (possible net pay between 12-20m) has been
encountered in the Cretaceous Sandstones (previously announced) whilst further oil
shows have been encountered in the deeper sandstones which are currently being drilled.

A testing program including the zones discovered to date and any deeper
potential payzones encountered will be agreed with the Operator upon total depth being
reached.

It's looking very good, IMO. These finds are proving up the theory that Yemen's fields flow south under the Gulf of Aden.

Hold on tight....
dat

[abbam]

looks like you made a good move here. didn't jump on yet. slow on the pickup

[dat_51or]

Nice to see this Horn Pete board get started. I'd encourage any who are researching HPMCF to look at the company's April 2012 Presentation.

http://www.hornpetroleum.com/i/pdf/2012-04_HRNP.pdf

As you can see, there is strong evidence that the fields in Yemen north acros the Gulf of Aden flow south into Somolia and our two blocks.

Take note of page 17 where the best case estimate of oil from both blocks is printed. Mind you this is the most optomistic case and is far from proven reserves, but 3.176 billion net barrels should get your attention.

I'm looking forward to drilling results later this month. Some speculate May 15th to concide with Puntland's approval of their constitution. Makes sense to me.

Fingers crossed.

dat

[D E]

I guess on june will dill to 3800 , than we will know.

[redinvest]

Going to pick up some shares here to compliment my other company's shares.

Red