African Petroleum Corporation provide 3rd quarter 2013 reports

African Petroleum Corporation provide 3rd quarter 2013 reports

Approximately US$17.08 million cash at bank at 30 September 2013

- In addition, approximately US$12.08 million restricted cash at 30 September 2013 being security deposits that will be released upon the achievement of certain drilling milestones in Côte d’Ivoire

- On 8 July 2013, the Company issued an Independent Competent Persons Report drafted by ERC Equipoise

- On 11 October 2013, the Company announced a restructuring of the Board whereby Mr Charles Matthews was appointed as a Director and Chairman of the Company, Mr Frank Timis resigned as Non-Executive Chairman of the Company and Mr Mark Ashurst has resigned from his role as Chief Financial Officer, but will remain on the Board as an Executive Director. Mr Stephen West has been appointed as Finance Director, to take over Mr Ashurst’s financial duties. Mr West is not being appointed to the Board

On 23 September 2013, the Company was granted a two-year extension to the SL-03 Petroleum Agreement by the Petroleum Directorate of Sierra Leone. Final authorisation is subject to Parliamentary ratification.

Liberian Project: Blocks LB-08 and LB-09
African Petroleum holds a 100 per cent interest in offshore Blocks LB-08 and LB-09; the Blocks cover a
combined surface area of 5,381 sq km and are currently in the second exploration period. In 2010, African
Petroleum acquired and interpreted 5,100 sq km of 3D seismic data over the Blocks.
Three wells have been drilled on LB-09 since 2011. The first, Apalis-1 was drilled in September 2011.
Apalis-1 encountered oil shows in several geological units including the shallower (Tertiary) and deeper (Cretaceous). Petrophysical analysis indicated the presence of hydrocarbons and source rock intervals.

The second well, Narina-1, was spudded in January 2012.
In February 2012, African Petroleum announced a significant oil discovery at Narina-1. The well encountered 21 metres of net oil pay in the Turonian (38 degree API) and 11 metres of net oil pay in the Albian (44 degree API) with no oil water contacts. This discovery was a substantial step in proving the existence of a working hydrocarbon system beneath the Liberian acreage.

The Narina discovery confirmed the prospectivity of the “Narina-Bee Eater fan system” which extends over a large area. The Bee Eater-1 well was planned to further explore this system by drilling within the fan feeder system. The Company spudded its third well, Bee Eater-1 in January 2013. In February 2013, the Company announced a discovery at Bee-Eater-1. While the well confirmed the presence of oil bearing sandstone in the Turonian, the permeability was lower than anticipated. This is attributed to the well location which was in a feeder ‘by-pass’ zone. Bee Eater-1 was also designed to test the prospectivity of two deeper zones, the Cenomanian and Albian. Oil bearing sandstones were encountered at the deeper levels, which was initially promising due to the absence water bearing sands and oil water contacts. Regrettably,however, the deeper zones also suffered from a lack of permeability. No oil samples or pressure information was recovered due to low permeability.
The Company held a Joint Operating Committee meeting with the National Oil Company of Liberia on 2 October 2013.

Post-well studies are being performed to assess the controls on reservoir quality; the results there from will be integrated into a predictive model going forward. Work is ongoing to integrate well results in furtherance of gaining better clarity of the prospectivity within Blocks LB-08 and LB-09.

The reprocessed 3D seismic dataset was received in September 2013. Additional well locations will be worked up in both Blocks. The Company is encouraged by the well results so far and continues to build the exploration portfolio as it seeks a Joint Venture partner for the forward work programme.

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