Ethiopia

Africa Oil Corp. took a farmout from Agriterra Ltd., formerly White Nile Ltd., to acquire subject to approvals an 80% participating interest in and operatorship of the South Omo block in southwestern Ethiopia.

By OGJ editors
HOUSTON, June 17
– Africa Oil Corp. took a farmout from Agriterra Ltd., formerly White Nile Ltd., to acquire subject to approvals an 80% participating interest in and operatorship of the South Omo block in southwestern Ethiopia.

The block covers 29,465 sq km in the Omo Rift Valley in the Tertiary-age East African Rift, just north of Lake Turkana, Kenya, and in the same petroleum system as Africa Oil’s Kenya Block 10BB and Tullow Oil PLC’s Uganda oil discoveries.

Africa Oil would pay 80% of past costs incurred by Agriterra, to a maximum of $2.5 million, and fund 100% of the costs associated with a work program comprised of 500 line-km of 2D seismic, a field geology program, and a surface geochem program. Total exposure is estimated at $6.5 million, most to be incurred in the first half of 2011.

Africa Oil said it has a dominant 250,000-sq km land position in the East Africa Tertiary Rift trend, where it is running two seismic crews and one rig and expects to test all major play types within 12-18 months.

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