World-Class East Africa Oil Exploration Play. Somalia, Ethiopia and Kenya

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1 World-Class East Africa Oil Exploration Play Somalia, Ethiopia and Kenya

2 Surrounded by Oil 2

3 3 East Africa: New Oil Province Highly under explored region of East Africa which is surrounded by billion barrel discoveries on all sides AOI has secured major acreage positions in all key petroleum systems which extend into the area Outstanding fiscal terms in all blocks AOI Concessions cover over 200,000 km 2 a land position roughly the size of Great Britain Near term exploration results in and around key blocks Excellent in-country management teams with successful track records in Africa

4 4 Block Summaries Country Concession Acreage WI Somalia Dharoor Nogal 30,000 km 2 80% 50,000 km 2 100% 80% 60% 40% 20% 0% Excellent Fiscal Terms Ethiopia 2, 6, 7, 8 Adigala Kenya 10A 10BB 9 47,362 km 2 85% 24,000 km 2 50% 14,747 km 2 13,000 km 2 27,778 km 2 80% 100% 30% Government Take Potential to further increase presence in region prospective blocks and distressed companies identified

5 East Africa: Vastly Under Explored Proven Petroleum System 5 United Kingdom km Norway North Sea 4,610 wells 210,000 km 2 61 wells before commercial oil in the North Sea 50 billion boe reserves 5.5 million boepd < 200 wells >2.3 million km 2 Suez Gulf of Suez Basin 3,096 wells 26,000 km 2 8 billion barrels reserves 700,000 bpd Figures shown at same scale

6 Major New East African Analogue 6 Heritage/Tullow have drilled 11 consecutive oil discoveries resulting in 1 billion barrels of new oil discovered Two years ago, prior to recent drilling program, this basin looked just like AOI s current portfolio numerous oil seeps, older wells, etc. D.R.C. SUDAN UGANDA Kingfisher Buffalo Giraffe Warthog Albert Graben Oil Field Prospect Well Permits Country Border RWANDA TANZANIA

7 7 Oil seeps and shows in wells Oil discovery (?) Somalia Oil indications Over 4 billion barrels oil in place potential (Sproule Mean Case Estimate January, 2007) Concessions located in Puntland, a more stable and semiautonomous region of Somalia Good quality existing seismic on Nogal Block Newly acquired seismic on Dharoor Block Numerous large prospects identified drill ready Possible oil discovery (1958) in Dharoor Block Oil seeps and shows

8 8 Yemen/Somalia Pre and Post Rifting Yemeni basins contain 9 billion BOE reserves with current production of over 400,000 bpd Most production from Cretaceous Qishen and Jurassic Alif sandstone reservoirs sourced by Madbi Shales In Yemen between 1994 and 2006 there was an average discovery size of 96 million BOE recoverable reserves with a discovery success rate of 23% Once contiguous Somalia basins have identical geology and potential

9 Nogal/Kalis Block coverage 9 April 2009

10 Nogal South Prospect Depth structure? Top Jurassic 10 April 2009

11 Dharoor seismic data yellow-old; green-planned; orange-shot April 2009

12 12 New Seismic Shot on Dharoor Block 775 km 2D seismic program completed January, 2009

13 Kenya 13 1 discovery, numerous prospects and leads with 262 million barrels oil potential 4 leads with 416 million barrels oil potential 3 leads with 1.1 billion barrels oil potential Block 10A acreage equivalent in size to 90 North Sea blocks for scale of reference, an area this size in the North Sea has over 20 oil fields with over 200 exploration wells drilled Extension of the major Sudan oil trend continuation of Muglad Basin Proven petroleum system Block 10BB within same system as Albert Graben play Large legacy database including drill data New pipelines likely to be built through Kenya to develop Ethiopia and Uganda reserves Tullow considering 1,500 km pipeline to Mombassa spur pipeline from 10BB approximately 250 km

14 14 Kenya Anza Basin Play Concepts Extension of Sudan s Muglad Basin Cretaceous sandstones Rift-faulted structures Oil prone, Cretaceous source Waxy, high pour point oil Newly identified Jurassic target

15 Kenya Block 10BB 15 Lokichar One well drilled Moderate seismic coverage 2,772 sq km 1 discovery 5 prospects 8 leads Kerio Undrilled Reconnaissance seismic grid 2,388 sq km 6 leads Lake Turkana Undrilled Sparse seismic 1,774 sq km 3 leads Prospect and Leads One discovery (Loperot) 5 prospects (1 BBO) 17 leads (1.5 BBO)

16 16 Ethiopia Acreage equivalent in size to 240 North Sea blocks for scale of reference, an area this size in the North Sea has over 50 oil fields with over 500 exploration wells drilled 4 leads with 640 million barrels oil potential Exploration activity in area increasing but this section of East African rift system remains extensively under explored Proven petroleum system Significant nearby discoveries and shows 16

17 17 Ethiopia: Ogaden Basin Activity Proven oil and gas source rocks in the Jurassic and Permo-Triassic Over 4 tcf gas discovered with several wells recovering significant amounts of good quality light oil El Kuran oil discovery on AOI Block 8; active oil seeps to west and southwest Structural leads on existing seismic in AOI blocks Petronas currently developing Calub and Hilala gas fields Transport of oil and gas could be north through Djibouti or south into Kenya to Mombasa Petronas to drill 3 exploration wells and 2 appraisal wells in 2009

18 18 Ethiopia Seismic Program 2009 Ogaden seismic program to focus on developing existing leads into drillable prospects Plans for larger regional seismic grid based on initial drilling Have retained promoted farmout partners in all blocks Proposed Petronas Drilling Location

19 Aggressive East African Exploration Program Over Next Two Years 19

20 20 Major Resource Potential Block Low Estimate Best Estimate High Estimate Somalia Nogal(80%) 1,770 million* 3,441 million* 8,318 million* Kenya Block 9 (30%) 748 million** Kenya Block 10A (100%) 11.0 million*** million*** million*** Kenya Block 10BB (100%) 33 million**** 262 million**** 1,007 million**** Ethiopia Blocks 2, 6, 7, million***** * Oil-in-Place Sproule January 31, 2007 ** Internal Estimate *** Prospective Recoverable Resources Petrotech December 31, 2008 **** Prospective Recoverable Resources Classified as P90, P50 and P20 Gaffney Cline September, 2008 ***** Prospective Recoverable Resources Best Case Estimate Available Only Petrotech December 31, 2009

21 21 Dealmakers Excellent return on original investment Company 2002 Present Notes Tanganyika $0.55 $13.5 million Valkyries $0.45 $4 million Lundin Petroleum U $0.41 U $101 million $31.50 $1.9 billion $16.00 $750 million U $9.26 U $2.95 billion Sold to Sinopec 2008 Sold to Lundin Petroleum 2006 Active

22 22 Budget Note: Budget numbers are net to AOI and include farmout deals with New Age (completed) and Black Marlin (in progress)

23 23 Opportunity World class oil exploration play in East Africa Very large under explored portfolio within oil-prone, proven petroleum systems Multi-billion barrel oil potential Increased exploration activity by large oil companies initiating in region Managerial, technical and administrative expertise in-place in Nairobi and Addis Ababa Lundin Group technical, managerial and financial resources in place Significant expansion potential in East Africa

24 24 Corporate Profile 55.4 million shares outstanding/96.1 million fully diluted Listed: AOI TSX-V Management team successful track record and experience in region Keith Hill, CEO Rick Schmitt, President James Phillips, VP Exploration Cameron Bailey, Director Gary Guidry, Director Ian Gibbs, Director Darren Moulds, CFO Ph: Website:

25 Experienced, Successful Management 25 Rick Schmitt, President Mr. Schmitt brings over 29 years of diverse international experience in the upstream oil and gas industry, managing and developing projects in the prolific oil basins of Yemen, coupled with expertise in exploration, exploitation, operations, new ventures and demonstrated strength in strategic planning and negotiations. Mr. Schmitt held senior management and executive positions with Occidental and Canadian Occidental over a period of 20 years and prior to joining Africa Oil was President and General Manager of Occidental Yemen for 5 years. Mr. Schmitt has a B.Sc. in geology from the University of Birmingham in the U.K. Keith Hill, CEO Mr. Hill has over 22 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and Shell Oil Company. His education includes a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University as well as an MBA from the University of St. Thomas in Houston. Prior to his involvement with Africa Oil, Mr. Hill was President and CEO of Valkyries where he led the company through rapid growth and ultimately a highly successful $700 million takeover by Lundin Petroleum. In addition, Mr. Hill was one of the founding directors of Tanganyika Oil which was recently the subject of a $2 billion takeover by Sinopec International Petroleum. James Phillips, Regional VP Exploration Before joining Africa Oil Mr. Phillips was Vice President Exploration Africa and Middle East for Lundin Petroleum AB. Mr. Phillips is a graduate of the University of California, Berkeley and San Diego State University where he obtained BS and MS degrees, both in Geology. He has over 24 years of experience in the oil industry including senior positions with Shell Oil company and Occidental including heading up Oxy s African exploration ventures. Gary Guidry, Director Mr. Guidry brings to the Board of Africa Oil Corp. an extensive background and proven track record in international petroleum development and project execution. A Petroleum Engineer by training, he is an Alberta-registered Professional Engineer with expertise in diverse environments ranging from deep-water West Africa and the Gulf of Mexico, South American rainforests to the deserts of the Middle East. Most recently, Mr. Guidry was President of Tanganyika Oil Company Ltd. where he led the company from an early stage oil development project in Syria to a $2 billion takeover by Sinopec International Petroleum in late Ian Gibbs, Director Ian Gibbs is a Canadian Chartered Accountant and a graduate of the University of Calgary where he obtained a bachelor of commerce degree. Ian Gibbs has held a variety of prominent positions within the Lundin Group of Companies; most recently as CFO of Tanganyika Oil Company Ltd. where he played a pivotal role in the recent $2 billion acquisition by Sinopec International Petroleum. Prior to Tanganyika, Mr. Gibbs was CFO of Valkyries Petroleum Corp which was the subject of a $700 million takeover. Darren Moulds, CFO Mr. Moulds brings to Africa Oil 9 years of financial experience in the oil and gas sector. A graduate of the University of Saskatchewan he obtained a bachelor of commerce degree and is a United States Certified Public Accountant. Cameron Bailey, Director Mr. Bailey is a Chartered Financial Analyst with a Bachelor of Commerce degree from the University of Calgary. He has worked in the energy investment business, specifically investment banking for the past 19 years. He is the founder of, and has organized, the initial public offerings for a number of oil and gas exploration and production, and oilfield services companies.

26 26 Cautionary Statements This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and political risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management s capacity to execute and implement its future plans. Actual results may differ materially from those projected by management. Resource and reserves references are in most cases from independent technical reports(please see website for more details). Resource and reserve references on other companies have been sourced from websites and other public information and may not be accurate.