September 20, 2011 - Africa Oil Corp. (AOI - TSXV, AOI - NASDAQ OMX) (“Africa
Oil” or “the Company”) is pleased to report that its has closed its previously
announced transaction (the “Transaction”) with Denovo Capital Corp. (“Denovo”)
pursuant to which Denovo has acquired all of the issued and outstanding shares
of Canmex Holdings (Bermuda) I Ltd. (“Canmex”). Prior to the closing, Denovo
effected a consolidation of its share capital on the basis of 0.65 new shares
for each old share, and changed its name to Horn Petroleum Corporation
(“Horn”).
Canmex, which was formerly a subsidiary of Africa Oil, holds a 60% interest in
the production sharing agreements for the Dharoor Valley Exploration Area and
the Nugaal Valley Exploration Area in Puntland, Somalia. In consideration for
the shares of Canmex, Africa Oil received 27,777,778 post-consolidation shares
of Horn. Africa Oil also acquired 11,111,111 post-consolidation shares and
11,111,111 post-consolidation share purchase warrants in the Horn private
placement and holds a 51% interest in Horn.
Concurrent with the closing of the Transaction David Grellman, currently the
Vice President Operations for Africa Oil, was appointed President of Horn and
Jeromie Kufflick was appointed Chief Financial Officer. Both Mr. Grellman and
Mr. Kufflick will retain their current positions with Africa Oil. Keith Hill,
Africa Oil's President and Chief Executive Officer, has been appointed the
Chairman of the Horn board of directors. Messrs. Ian Gibbs, currently Africa
Oil's Chief Financial Officer, Wojtek Wodzicki and Randy Neely have also been
appointed to the Horn board.
Horn's common shares will commence trading on the TSX-V on or about September
23, 2011 under the symbol “HRN”.
Africa Oil Corp. is a Canadian oil and gas company with assets in Kenya,
Ethiopia, and Mali, as well as Puntland (Somalia) through its interest in Horn
Petroleum Corp. Africa Oil's East African holdings are in what is considered a
truly world-class exploration play fairway. The Company's total gross land
package in this prolific region is in excess of 300,000 square kilometers. The
East African Rift Basin system is one of the last of the great rift basins to
be explored. New discoveries have been announced on all sides of Africa Oil's
virtually unexplored land position including the major Albert Graben oil
discovery in neighbouring Uganda. Similar to the Albert Graben play model,
Africa Oil's concessions have older wells, a legacy database, and host numerous
oil seeps indicating a proven petroleum system. Good quality existing seismic
show robust leads and prospects throughout Africa Oil's project areas. The
Company is listed on the TSX Venture Exchange and on First North at NASDAQ
OMX-Stockholm under the symbol "AOI".
FORWARD-LOOKING STATEMENTS
Certain statements made and information contained herein constitute
"forward-looking information" (within the meaning of applicable Canadian
securities legislation). Such statements and information (together, "forward
looking statements") relate to future events or the Company's future
performance, business prospects or opportunities. Forward-looking statements
include, but are not limited to, statements with respect to estimates of
reserves and or resources, future production levels, future capital
expenditures and their allocation to exploration and development activities,
future drilling and other exploration and development activities, ultimate
recovery of reserves or resources and dates by which certain areas will be
explored, developed or reach expected operating capacity, that are based on
forecasts of future results, estimates of amounts not yet determinable and
assumptions of management.
All statements other than statements of historical fact may be forward-looking
statements. Statements concerning proven and probable reserves and resource
estimates may also be deemed to constitute forward-looking statements and
reflect conclusions that are based on certain assumptions that the reserves and
resources can be economically exploited. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often,
but not always, using words or phrases such as "seek", "anticipate", "plan",
"continue", "estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe" and
similar expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be given that
these expectations will prove to be correct and such forward-looking statements
should not be unduly relied upon. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements, except as
required by applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil prices, results
of exploration and development activities, uninsured risks, regulatory changes,
defects in title, availability of materials and equipment, timeliness of
government or other regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of third party
service providers, equipment and processes relative to specifications and
expectations and unanticipated environmental impacts on operations. Actual
results may differ materially from those expressed or implied by such
forward-looking statements.
ON BEHALF OF THE BOARD
OF
AFRICA OIL
CORP.
“Keith C. Hill”
President and
CEO
For further information, please contact:
Sophia Shane, Corporate Development, Africa Oil (604) 689-7842.
Africa Oil's Certified Advisor on First North is E. Öhman J:or Fondkommission
AB.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
