This warchest will likely result in a lot of deal making in the ensuing months/year. Same story in reuters:
http://in.mobile.reuters...0ET1F320130617?irpc=932

A little bird whispered and said that we should expect news as from today to the 28th of June. Workers have moved from Ngamia to Etuko this article is a sign of things to come. http://www.businessdaily...2/-/fjejow/-/index.html
and
http://www.businessdaily...42/-/or1h7k/-/index.html

Following the oil monies - www.nation.co.ke/busines...6/-/16n6wtz/-/index.html

NSE20 slide is very welcome. Need it to sustain to offer a discount bonanza or better a fat tail cocktail for the next reload and push towards 6000pts!

Drake Lawhead talks to Jim Phillips from Africa Oil Corporation
http://www.youtube.com/w...re=player_embedded#t=0s

He reiterates what Keith Hill has said previously on numerous occasions. Africa Oil will use Horn Petroleum as the vehicle for taking up new assets in other Rift Basins.

Australian Securities Exchange-listed exploration firms FAR Limited and Pancontinental Oil and Gas are seeking to sell part of their exploration rights on a block off the coast of Kenya, to raise funds that will be used in drilling.

Ngamia-1 flows 5000 barrels of oil per day matching Twiga-1. The two wells are now estimated to contain 250 Million barrels of oil.

Etuko discovers 40 metres of net pay in the Auwerer Sandstones and Upper Lokhone. Now drilling Lower Lokhone.

Ekales to spud later this month.

Oil shows in Sabisa but hole instability issues. Will drill Tultule in the 3rd Quarter.

Brace yourself folks, commerciality could well be attained later this year or the first half of next year. As I've been saying DRILL BABY DRILL!!!


Kenya
Exploration and Appraisal activity across Tullow’s operated acreage in Kenya continues to be very successful.
The flow testing programme at Ngamia-1 in the Lokichar Basin has now been successfully completed with a
cumulative constrained flow rate totalling 3,200 bpd of 25 to 35 degree API sweet waxy oil with no indication
of pressure depletion. Analysis of the test data from both the Ngamia-1 and Twiga South-1 wells has resulted in
the doubling of our previous estimates of net oil pay to 200 metres and 75 metres respectively, an optimised
flow rate potential of around 5,000 bopd per well and significantly increased discovered volumes. The
combined mean associated resources for the two discoveries is now estimated to be over 250 mmbo with the
potential to increase further following appraisal.
Ekales-1, the next exploration well in the Basin Bounding Fault Play on trend with Ngamia and Twiga-South, will
commence drilling in late July 2013. A 550sqkm 3D survey over the area, which will support our appraisal
programme, will commence in the third quarter of 2013. The full Kenya schedule is detailed in Table 1 at the
end of this announcement.
In May 2013, drilling commenced on the Etuko prospect, 14 km east of Twiga South-1 in Block 10BB. This is the
first test of the Basin Flank Play in the South Lockichar Basin and results of drilling, wireline logs and samples of
reservoir fluid confirm a new oil discovery with net pay of over 40 metres in the Auwerwer and Upper Lokhone
targets. The well is now drilling the Lower Lokhone sands and results from this lower section are expected by
the end of July.
These results are an important step towards understanding the commerciality of the Lokichar Basin and, as we
advance towards the commercial threshold for development, Tullow continues to work in consultation with the
Government of Kenya on development options.
Page 3 of 7
Following recent successes a third rig and a dedicated testing unit have been contracted to support increased
exploration and appraisal activity in Kenya by year-end.

Ethiopia
In Ethiopia, the Sabisa-1 well, the most northerly well drilled in our East African acreage to date, has
established that the hydrocarbon system in that area is oil prone. The well commenced drilling in the South
Omo licence in January 2013 but due to hole instability a sidetrack had to be drilled. The well has encountered
reservoir quality sands, oil and heavy gas shows indicating an oil prone source rock and a thick shale section
which should provide good seals for the numerous fault bounded traps identified in the basin. Following this
encouraging result, the decision has been taken to drill the nearby Tultule prospect, an attractive structure four
kilometres east of Sabisa-1. The well is expected to commence late in the third quarter of 2013. Numerous
additional follow-up prospects have been mapped in this part of the South Omo Block and in the adjacent
Chew Bahir Basin.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 3, 2013) - Africa Oil Corp. (TSX VENTURE:AOI)(OMX:AOI) ("Africa Oil" or the "Company") is pleased to announce excellent results from its recent drilling operations in Kenya and Ethiopia.

The testing program at the Ngamia-1 oil discovery on Block 10BB in Kenya has now been successfully completed. The cumulative flow rate from six Drill Stem Tests ("DST's") was over 3200 barrels of oil per day ("BOPD") constrained by completion techniques and surface equipment. With optimized completion techniques and surface equipment it is estimated that these combined flow rates would increase to a rate of 5400 BOPD. Five of the DSTs were completed over the Auwerwer sandstones to verify reservoir quality and fluid content which appear to be of similar quality to those tested at the Twiga South-1 well in the same basin. High quality waxy sweet crude (25-35 degrees API) was flowed from all five zones in the Auwerwer formation with good quality reservoir sands encountered. All zones produced dry oil with no water produced and no pressure depletion. One DST was completed on the Lower Lokhone with successful results as previously announced on April 15, 2013.

In addition to proving the good quality reservoir, as a result of testing several previously indeterminate zones in the well, the joint venture has been able to double the firm net oil pay estimate in the Ngamia well to over 200 meters over a gross oil column of over 1,100 meters and has increased the net pay at Twiga to over 75 meters. The Operator, Tullow Oil, has reported that they believe the Ngamia and Twiga fields contain over 250 million barrels of recoverable oil. Appraisal work, including the acquisition of 3D seismic and the drilling of appraisal wells on both discoveries, will be undertaken over the next year to confirm these estimates. A mid-year revision to the Company's third party resource report is ongoing and is expected to be issued in the third quarter and will take into account these improved reservoir thickness and quality parameters.

The Weatherford 804 rig used to test this well is currently being mobilized 13 kilometers north to the Ekales location, a prospect similar to and located between the Twiga and Ngamia discoveries, which is expected to spud in late July.

The Company is also pleased to announce that oil has been discovered in the Etuko prospect in the Lokichar Basin in Block 10BB in Kenya. This well was located on a tilted fault block target on the Basin Flank Play on eastern side of the basin. Based on logs and oil recovered by MDT sampling, net pay of 40 meters has been confirmed in the Auwerwer and Upper Lokhone targets which demonstrate good reservoir properties and oil quality. Within the Upper Lokhone sequence the well encountered a thick section of lacustrine source rocks with interbedded oil-bearing sandstones. The well is currently drilling in the Lower Lokhone sands and results from this lower section are expected by the end of July.

The Company is also pleased to announce that the Sabisa-1 well, the most northerly well drilled in the trend to date, has confirmed a viable hydrocarbon system in this region. The well was drilled on the South Omo Block in Ethiopia in the northern portion of the Turkana Basin, over 300 kilometers north of the Ngamia and Twiga discoveries, to a total depth of 2082 meters. The well encountered reservoir quality sands, oil shows and heavy gas shows indicating an oil prone source rock and a thick shale section which should provide a good seals for the numerous fault bounded traps identified in the basin. Only the lowermost sands appear to be in trapping configuration at Sabisa. Based on the encouragement of the results of this well however, the decision has been made to drill the nearby Tultule prospect which appears to be a horst-block structure 4 kilometers to the east. The OGEC 75 rig move has been initiated and a late third quarter spud is expected. Numerous additional follow-up prospects have been mapped in this part of the South Omo Block and in the adjacent Chew Bahir Basin.

Preparations continue for drilling in both the Kenya Block 9 Bahasi prospect and the Ethiopia Ogaden Basin Block 8 El Kuran prospect. Africa Oil will operate the Bahasi well on behalf of its 50% joint venture partner Marathon Oil and will utilize the Great Wall drilling rig #190. The prospect is a large anticlinal feature in the Lower Cretaceous Anza rift and is on trend with the Paipai discovery made early this year in Kenya Block 10A. The El Kuran well is being operated by New African Global Energy and is expected to spud in July. It is a Jurassic fractured carbonate play on a large anticlinal feature that had previously been drilled by Tenneco in the early 1970's and had tested light oil at low rates. The primary goal of this well is to prove commercial flow rates. Based on the results of the initial well, fracture stimulation and horizontal drilling may be considered. An additional lightweight rig for testing and drilling operations is also being mobilized into the Lokichar Basin in Kenya which will bring the total rig count to six in the Company's blocks in Kenya and Ethiopia. A Full Tensor Gradiometry ("FTG") survey is also currently underway in the Company's wholly owned Rift Basin Area in Ethiopia and is expected to be completed in August.

Africa Oil CEO Keith Hill commented, "We are very pleased with the results of the Ngamia-1 testing program which has confirmed the productivity of both the Lower Lokhone reservoir and the high quality Auwerwer reservoir and significantly increased the net pay in the well. Ngamia is a world-class oil discovery and these results move us towards achieving the threshold for a commercial development in the Lokichar basin. This encouragement has caused us to set in motion appraisal of the Ngamia-Twiga trend and to assemble a technical team to commence early development planning both for a large scale pipeline development and an early development scheme. The Etuko discovery also opens up a new fairway on the eastern flank play in Lokichar where a number of other large scale prospects have been identified. The Sabisa results are also highly encouraging as all the major components for oil accumulation appear to have been proven in one of our largest and most prospective frontier basins in the portfolio. The second half of 2013 promises to be an exciting and transformational period in the growth history of the Company."

Tullow announces new discovery in Kenya, upgrades oil resources to at least 250m barrels.

In a trading update, Tullow has announced an oil discovery in the Etuko prospect, 14 km east of Twiga South-1 in Block 10BB- which commenced drilling in May 2013. The prospect is the first test of the Basin Flank Play in the South Lockichar Basin and results of drilling, wireline logs and samples of reservoir fluid confirm a new oil discovery with net pay of over 40 metres in the Auwerwer and Upper Lokhone targets. The well is now drilling the Lower Lokhone sands and results from this lower section are expected by the end of July. These results are an important step towards understanding the commerciality of the Lokichar Basin. The flow testing programme at Ngamia-1 in the Lokichar Basin has also been completed with a cumulative constrained flow rate totalling 3,200 bpd of 25 to 35 degree API sweet waxy oil with no indication of pressure depletion. Analysis of the test data from both the Ngamia-1 and Twiga South-1 wells has resulted in the doubling of our previous estimates of net oil pay to 200 metres and 75 metres respectively, an optimised flow rate potential of around 5,000 bopd per well and significantly increased discovered volumes. The combined mean associated resources for the two discoveries is now estimated to be over 250m barrels of oil with the potential to increase further following appraisal. Ekales-1, the next exploration well in the Basin Bounding Fault Play on trend with Ngamia and Twiga-South, will commence drilling in late July 2013. As the company advances towards the commercial threshold for development, Tullow continues to work in consultation with the Government of Kenya on development options. It is thought that Africa Oil and Tullow have agreed to a basin wide development with the government rather than giving up part of the exploration blocks in which they hold, a plan aimed at hastening the speed of exploration. (Tullow Oil, Standard Investment Bank)

Yaani you mean hii ndio asante? Eh?

Somalia lays claim to Kenya’s oil blocks

http://www.thepeople.co....m-to-kenyas-oil-blocks/

By Gitahi Ngunyi

The future of Kenya’s oil exploration activities at the Coast, in what is technically referred to as the Lamu Basin, hangs in the balance following Somalia’s move to put a claim on the area where exploration blocks fall. On Thursday, the Somalia cabinet passed a resolution to extend its sea boundaries by 200 nautical miles in a right angle line to its boundary with Kenya.

This means that Somalia will increase its sea border by 26,000 square nautical miles or 38,000 square kilometres while Kenya will lose a similar area of its sea territory. If Somalia implements its Cabinet resolution, it will take an area where six downstream oil and gas exploration blocks which Kenya says belong to her territory are located.
The 38,000 square kilometres in question covers exploration block L23 and L24, awarded last year to ENI Spa. It also covers significant portion of L5 operated by American exploration firm Anadarko, and L13 operated by Zarara, a subsidiary of Midway Resources, a company registered in Cayman Islands and which also has operations in Comoros, Mauritius and Nigeria.

The bulk of block of L21 also operated by ENI Spa, L22 operated Total, L25 which is under negotiation and L26 operated by Lamu Exploration also fall in the territory now claimed by Somalia. The move is likely to scare off oil and gas exploration companies that have signed production sharing contracts (PSC) with the Kenya government for the six blocks.

Five of the six blocks have been awarded to various exploration companies while one is still under negotiation. Total was awarded L22 which lies off the Lamu Coast while ENI Spa was awarded L21, L23 and L24. American oil firm Anadarko operates L5 block. The Lamu Basin block has attracted the attention of the multinational oil companies following discoveries of huge natural gas deposits in the Indian Oceans coasts of Mozambique and Tanzania.

And the prospects for both oil and gas in the same coast line in Kenya have also been high. The company behind the discoveries in the two countries Anadarko last December reported that which encountered non-commercial oil shows in block L7. Before Anadarko, in September last year, Apache another American firm encountered 53metre net gas pay, in block L8 in what became the first hydrocarbon discovery at the Kenyan coastline.

The Somalia government move is likely to heighten border tensions between the two countries that kicked off in 2009 following the renewed interests in East African Coast by multinational oil companies. The dispute between the two countries has been ongoing since 2009 but has been exacerbated by discovery of oil in Northern Kenya by British owned firm Tullow Oil.

In 2009, Kenya and Somalia officials signed an agreement that allowed either of the countries to have activities in the disputed area as they awaited the demarcation of the boundaries. The agreement was hastily negotiated following Somalia’s objection to Kenya’s plan to auction the exploration rights of the blocks in question. But the agreement sparked an outrage in Somalia with civil society and Somali in diaspora accusing Kenya of attempting to take over area belonging to Somalia.

In the face of public anger over the agreement, signed by then Kenya foreign affairs minister Moses Wetangula and Somali Transitional Federal Government minister for national planning and international cooperation Abdirahman Warsame, the Somali parliament voted overwhelmingly to reject the agreement a few months after it had been signed.
At the heart of the dispute between the two countries is the assertion by Kenya that the border line between the two countries at sea is demarcated by a line that moves east from where the two countries meet on land. On the other hand, Somalia argues that the borderline is demarcated diagonally at the right angle to its land borderline with Kenya at the coast.