Friday December 16 2011 - News Release
Mr. Keith Hill reports
AFRICA OIL CORPORATE UPDATE
Africa Oil Corp. has completed the first stage of its proposedreorganization of the assets of Lion Energy Corp., its direct, wholly ownedsubsidiary, acquired by the company in a plan of arrangement transaction thatcompleted in June, 2011. Lion has assigned to Africa Oil all of its assets, andAfrica Oil assumed all of Lion's liabilities, in contemplation of completing avoluntary dissolution of Lion in early 2012.
Lion was the registered holder of 2.5 million common shares ofthe company, which shares will be surrendered for cancellation and returned totreasury. No consideration was paid to Africa Oil in connection with thecancellation and return to treasury of the shares.
As a result of the cancellation of the shares, Africa Oilcurrently has 211,413,059 issued and outstanding common shares.
The anticipated spud date of the Ngamia well has been revisedto January, 2012. The prospect has been selected by the Tullow-operated jointventure as the initial well in block 10BB. The well will test the oil potentialin Miocene-age sandstones within a three-way-dip closure against the WestLokichar rift fault. Ngamia is directly analogous to successful oilaccumulations drilled by Tullow and partners early in the exploration efforts inthe Lake Albert graben of Uganda.
In addition, the company reports that drilling operationscontinue on the Horn Petroleum-operated Dharoor block in Puntland, Somalia, andthe well is expected to spud in January, 2012.
We seek Safe Harbor.
© 2011 Canjex Publishing Ltd.
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