SIANJIA FLOW CONTROL

African Petroleum: Update - Liberian Licence LB-­-08 Term Sheet

Author：SIANJIA FLOW CONTROL PublicTime：2015-03-24 Views：1582

African Petroleum Corporation, an independent oil and gas exploration company operating ten licences in five countries offshore West Africa, announces that further to the Company’s announcement of 29 January 2015 regarding the extension of a non-­‐binding term sheet with a private London based independent oil and gas company to farm-­‐in to the Company’s 100% owned Liberian LB-­‐08 licence (“Term Sheet”), the Company announces that it has agreed to a request from the third party for an additional extension of the proposed completion date. An extension of approximately three months to 30 June 2015 has been agreed to allow for conditions affecting the third party that are outside their control at the present time.

As previously disclosed, pursuant to the Term Sheet the third party has agreed, subject inter alia to completion of due diligence and the entering into of mutually agreed contracts, to acquire a 50% net participating interest in the LB-­‐08 licence in return for the payment of 50% of all future costs and expenditures relating to the LB-­‐08 licence and a contribution to past costs and expenditures.

The LB-­‐08 licence is situated in a highly prospective region offshore Liberia. In an independent review of African Petroleum Corporation’s acreage conducted by ERC Equipoise Ltd in April 2014 and update in January 2015, the estimated net un-­‐risked mean prospective oil resources of LB-­‐08 exceeds 2.6 billion barrels. With an oil discovery in the adjacent licence and proof of a working hydrocarbon system in the central Liberian basin, the Company believes that LB-­‐08 has substantial potential.

Completion of the farm-­‐in transaction as contemplated by the Term Sheet is subject to contract and a number of conditions precedent, which, apart from one pertaining to approval from the Liberian Government, is now scheduled to be completed by midday 30 June 2015.