Africa Oil Corp

[sno43wolf]

Raytec completes farm-in deal with Africa Oil


2009-08-20 16:15 ET - News Release

Also News Release (C-AOI) Africa Oil Corp


Mr. Brian Thurston of Raytec Metals reports

RAYTEC FINALIZES FARM-IN WITH AFRICA OIL AND ACQUIRES ADDITIONAL BLOCK

Further to a release in Stockwatch on May 28, 2009, Raytec Metals Corp. has finalized a farm-in agreement with Africa Oil Corp., a member of the Lundin group of companies. The agreement relates to production sharing contracts in which Africa Oil has interests in the republic of Kenya and the state of Puntland, Somalia.

Kenya

Africa Oil will transfer to Raytec a 10-per-cent interest in the Block 9 production sharing agreement, a 25-per-cent licence interest in the Block 10A production sharing contract and a previously unannounced 20-per-cent interest in Block 10BB production sharing contract.

Block 10BB, recently acquired by Africa Oil from Turkana Energy Inc., is a large block encompassing approximately 13,000 square kilometres in the Rift Valley of northwestern Kenya. The block is within the Tertiary rift trend of East Africa, which has recently yielded major oil discoveries by operators such as Heritage Oil Corp. and Tullow Oil PLC, both active in the Lake Albert region of Uganda. Block 10BB is located immediately west of blocks 9 and 10A.

Puntland, Somalia

Africa Oil will transfer a 15-per-cent licence interest to Raytec in the Nogal and Dharoor petroleum production sharing agreements.

"The alliance with Africa Oil is a unique opportunity to partner with the Lundin Group, one of the most respected names in the energy resource industry," said Brian Thurston, president and chief executive officer of Raytec. "Our participation in the Kenya Block 10BB reinforces Raytec's commitment to create opportunities for our shareholders to participate in world-class exploration plays in East Africa."

This farm-in transaction is subject to TSX Venture Exchange acceptance, as well as approvals of the appropriate regulatory authorities from the Republic of Kenya and the government of Puntland, Somalia. A finder's fee will be payable in accordance with exchange policies.