PetroNor E&P ASA

Earnings Release • Nov 30, 2016

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2016

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 SEPTEMBER 2016

Please find enclosed African Petroleum Corporation

Limited's (the "Company" or "African Petroleum")

unaudited financial report for the quarter ended 30

September 2016.

HIGHLIGHTS

- During the quarter the Company continued working

with Ophir Energy and Petroci on planning for the

first exploration well to be drilled on the CI-513

licence (Company 45%, Ophir Energy (Operator) 45%,

Petroci 10%) in Côte d'Ivoire in Q2 2017.

- The CI-513 exploration well will be targeting the

Ayame West prospect with a gross mean prospective

resource of 350 million barrels (ERC Equipoise CPR).

- On 31 August 2016 the Company announced that it had

signed a Letter of Intent with an undisclosed

International E&P company with respect to Licences A1

and A4, offshore The Gambia.

- On 4 August 2016 the Company announced that further

to the announcement on 2 December 2015, the Company's

wholly owned subsidiary European Hydrocarbons

Limited's ("EHL") had received formal ratification

from the authorities in Sierra Leone for the entry

into the First Extension Period on the SL-03 licence.

As previously announced, the Petroleum Directorate

agreed to modify the work programme, minimum

expenditure requirements and social obligations in

favour of EHL during the First Extension Period on the

licence.

- The Company is continuing discussions with the

Senegalese and Gambian governments regarding possible

licence extensions and amendments to existing and

future work obligations. Concurrently, the Company

remains in farm-out negotiations with several

potential farm-in partners for certain licences across

the portfolio, including Côte d'Ivoire, The Gambia and

Senegal.

- Post period end, the Company announced that Liberian

production sharing contracts LB-08 and LB-09 ("PSCs")

had expired and will not be extended. The Company had

been in discussions with the relevant Liberian

authorities regarding the possible amendment of terms

and extension of these PSCs to enable the Company

additional time to attract an industry partner whilst

not enduring costly work commitments; however,

agreement could not be reached.

- Post period end, the Company reached agreement with

the Government of Sierra Leone to proceed into the

First Extension Period of the SL-4A-10 licence and to

modify the work programme, minimum expenditure

requirements and social obligations in favour of the

Company during the First Extension Period on the

licence.

- Approximately US$0.7 million cash at bank as at 30

September 2016, together with US$10.9 million

restricted cash.

- The Company has continued to operate with a reduced

running cost base (implemented in late 2015).

COMPANY BACKGROUND

African Petroleum, listed on the Oslo Axess (APCL) and

the Open Market of the Frankfurt Stock Exchange

(A1C1G9), is an independent oil and gas exploration

company led by an experienced Board and management

team, with substantial experience in oil and gas

exploration, appraisal, development and production.

The Company is a significant net acreage holder in

West Africa with estimated net unrisked mean

prospective oil resources in excess of 7.4 billion

barrels.

African Petroleum has equity interests in 8 licences

across four countries offshore West Africa (Côte

d'Ivoire, Senegal, The Gambia and Sierra Leone). The

Company's assets are located in proven hydrocarbon

basins, where several discoveries have been made in

recent years, including significant discoveries by

Total and Anadarko in Côte d'Ivoire, Cairn Energy in

Senegal and by Kosmos Energy in Senegal and Mauritania.

The Company has acquired more than 13,400km2 of 3D

seismic data on its existing licences and drilled

three exploration wells in West Africa.

CEO STATEMENT

"The Company continues to make headway with the

negotiations with our host governments and potential

partners, albeit progress has been slower than we

anticipated as a result of the challenging market

backdrop for exploration activities. We were pleased

to have signed a Letter of Intent ("LOI") with a

highly credible industry partner for our licences in

The Gambia which further demonstrates to the industry

and market our ability to attract partners for our

licences. We now hope to convert this LOI into a

formal agreement, subject to the Government of The

Gambia providing the amendments for the licences upon

which this provisional agreement is based.

On the operational side, we are working closely with

our partner Ophir Energy as we plan our high impact

exploration well on the CI-513 licence in Côte

d'Ivoire which we expect to be drilled in Q2 next

year. The well, which lies in relatively close

proximity to discoveries made by Total and Anadarko,

has the potential to be completely transformational

for African Petroleum and we are excited to have a

firm operational catalyst on the near horizon. The

licence continues to attract industry interest and the

Company may consider farming down its equity interest

further in order to mitigate our cost exposure whilst

still retaining a material interest in the upside

potential of this high impact well.

Post period end, we exited our licences in Liberia

after taking the decision that our efforts and

resources were best deployed in the licences within

our portfolio that continue to attract the most

industry interest due to the proximity to proven world

class commercial discoveries. The near term priority

will be conclusion of negotiations in Senegal and The

Gambia and we hope to reach a positive outcome in the

coming weeks and months."

OPERATIONAL & CORPORATE UPDATE

FARM OUT PROCESS

African Petroleum seeks to build on the success of

attracting Ophir Energy plc as a partner on the CI-513

Licence in Côte d'Ivoire by forming other strategic

partnerships to explore the Company's blocks in Côte

d'Ivoire, Senegal, The Gambia, and Sierra Leone. The

strategy, supported by detailed technical work and

prospect definition, is to use the significant equity

held in this prospective portfolio to fund a high

impact exploration drilling campaign. The industry

interest in Côte d'Ivoire, The Gambia and Senegal

licences in particular, due to the regional context of

hydrocarbon discoveries being made in adjacent blocks

in this part of the Atlantic Margin, provides

management with confidence that agreements will be

concluded in due course.

Côte d'Ivoire

Further to the announcement on 16 March 2016 that the

new Production Sharing Contract ("PSC") with Ophir

Energy plc covering the Company's CI-513 licence area

in Côte d'Ivoire became effective, the Company and

Ophir Energy have been working on planning for the

first exploration well to be drilled in Q2 2017. It

is expected that the CI-513 exploration well will be

targeting the Ayame West prospect with a gross mean

prospective resource of 350 million barrels. Due to

the proximity of recent discoveries made by Total and

Anadarko, the short time frame to drilling and the

material prospect size, the Company is in discussions

with several companies who have expressed interest in

farming in to the CI-513 licence. The Company is in

active discussions with these companies.

The Gambia & Senegal

The Company is continuing meetings and discussions

with the Governments of The Gambia and Senegal with a

view of aligning the requirements of the potential

incoming partners with the respective licence terms

and obligations.

On 31 August 2016 the Company announced that that it

had signed a Letter of Intent ("LOI") with an

undisclosed International E&P company with respect to

Licences A1 and A4, offshore The Gambia. The LOI

represents a non-binding commercial proposal regarding

the possible acquisition of interests in Licences A1

and A4 where African Petroleum holds 100% operated

working interest in both blocks. The proposal set

forth within the LOI is conditional upon African

Petroleum confirming the extension of the exploration

periods of both licences by at least 12 months by the

Government of The Gambia, and is subject to ongoing

due diligence and commercial negotiations.

This part of the Atlantic Margin has become highly

active with the recent exploration success of third

party operators, namely Cairn Energy in Senegal and

Kosmos Energy in Senegal and Mauritania. A

significant level of activity in the region is ongoing

as Cairn Energy and its partners commenced a multi-

well exploration and appraisal drilling programme

across their Senegal acreage in December 2015, with

the first three appraisal wells SNE-2, SNE-3 and SNE-4

being announced as successful in January 2016, March

2016 and May 2016 respectively. In addition, Kosmos

Energy extended their Mauritania drilling campaign

further south and commenced drilling in Senegal in

December 2015. This has led to a string of very

successful drilling programmes by Kosmos Energy

through the first half of the year, including

significant gas discoveries at Tortue, Geumbeul-1 and

Ternanga-1, and the successful appraisal well at

Ahmeyim-2.

Despite the challenging market conditions for

exploration activity and the prolonged nature of

discussions with potential partners and governments,

the Company remains confident that current advanced

discussions can yield farm-outs in due course. Further

announcements will be made when appropriate.

LICENCE PHASES

African Petroleum is actively engaged in discussions

with a number of governments regarding possible

licence extensions and amendments to existing and

future work obligations. The Company maintains strong

relationships with host governments founded upon

recognition of the Company's efforts to progress the

exploration of these licences. Based on the dialogue

experienced to date with the governments of Senegal,

The Gambia, Côte d'Ivoire and Sierra Leone, we are

confident that we will achieve outcomes that are

mutually beneficial for our host countries, potential

industry partners and African Petroleum.

Post period end, the Company announced that Liberian

production sharing contracts LB-08 and LB-09 ("PSCs")

had expired and will not be extended. The Company had

been in discussions with the relevant Liberian

authorities regarding the possible amendment of terms

and extension of these PSCs to enable the Company

additional time to attract an industry partner whilst

not enduring costly work commitments; however,

agreement could not be reached.

Please refer to the next section "Licence Information"

for further information on specific licences.

LICENCE INFORMATION

Côte d'Ivoire: Blocks CI-509 & CI-513

In Côte d'Ivoire, African Petroleum holds:

i) 90% working interest in offshore licence CI-509,

with the remaining 10% held by Petroci, the National

Oil Company of Côte d'Ivoire. The Company was awarded

CI-509 in March 2012; and

ii) 45% non-operated interest in offshore licence CI-

513, with a 45% operated interest held by Ophir Energy

plc and the remaining 10% held by Petroci. A new PSC

for CI-513 was signed in December 2015 and became

effective in March 2016.

The two licence interests have a combined net acreage

of 1,633km2.

The current phase of licence CI-509 ended in March

2016; however, the Company has not received a formal

notice of termination and the Company remains in

positive dialogue regarding the proposed suspension of

the licence to enable sufficient time for a regional

technical study and the introduction of a new partner

by the Company, at which point it is anticipated the

licence will be renewed.

Independent petroleum consultant ERC Equipoise

prepared an assessment of prospective oil resources

attributable to the Company's Côte d'Ivoire licences

and estimates the net unrisked mean prospective oil

resources at 1,273MMStb (adjusted for Ophir Energy's

45% interest in CI-513).

Senegal: Rufisque Offshore Profond & Senegal Offshore

Sud Profond

In Senegal, African Petroleum Senegal Limited holds a

90% operated working interest in exploration blocks

Rufisque Offshore Profond ("ROP") and Senegal Offshore

Sud Profond ("SOSP"). The National Oil Company

Petrosen, holds the remaining 10% equity. The

Company's Senegal licences are located offshore

southern and central Senegal, with a net acreage of

14,216km2.

The current phase of the ROP licence ended in October

2015; however, the Company has lodged a request for an

extension with the Government of Senegal and remains

in positive dialogue regarding this extension request.

The Company was required to elect whether to continue

with the current phase of the SOSP licence in June

2016 by committing to the drilling of an exploration

well; however, the Company has not elected to commit

to the drilling of the exploration well and has

entered into dialogue regarding the possible amendment

of this licence commitment.

Independent petroleum consultant ERC Equipoise

prepared an assessment of prospective oil resources

attributable to the Company's Senegal Licences and

estimates the net unrisked mean prospective oil

resources at 1,779MMStb.

The Gambia: Blocks A1 & A4

African Petroleum holds a 100% operated working

interest in offshore licences A1 and A4, with a

combined net acreage of 2,672km2. The Company has

completed a 3D seismic survey with data covering

2,500km2 and has found a number of analogous leads and

prospects in its acreage to that of the recent SNE-1

and FAN-1 discoveries and the SNE-2, SNE-3 and SNE-4

successful appraisal wells drilled by Cairn Energy in

Senegal.

The A1 and A4 licences required the Company to drill

an exploration well on either of the licences no later

than 1 September 2016. The Company was unable to meet

this drilling commitment and is in positive dialogue

with the Government of The Gambia regarding an

extension of this licence commitment.

Independent petroleum consultant ERC Equipoise

prepared an assessment of prospective oil resources

attributable to the Company's Gambian Licences and

estimates the net unrisked mean prospective oil

resources at 3,079MMStb.

Sierra Leone: Blocks SL-03 & SL-4A-10

In Sierra Leone, the Company holds a 100% operated

working interest in offshore licences SL-03 and SL-4A-

10. African Petroleum was awarded a 100% interest in

SL-03 in April 2010, while licence SL-4A-10 was

awarded as part of Sierra Leone's third offshore

licencing round in 2012. The Company's Sierra Leone

licences cover a combined net acreage of 3,925km2 and

are located to the south of Freetown, offshore Sierra

Leone.

On 4 August 2016 the Company received formal

ratification from the authorities in Sierra Leone for

the entry into the First Extension Period on the SL-03

licence. As previously announced in December 2015,

the Petroleum Directorate agreed to modify the work

programme, minimum expenditure requirements and social

obligations in favour of the Company during the First

Extension Period on the licence.

The current phase of the SL-4A-10 licence ended in

September 2015, having fulfilled the commitment to

acquire 3D seismic over the licence. Post period end,

the Company reached agreement with the Government of

Sierra Leone to proceed into the First Extension

Period of the SL-4A-10 licence and to modify the work

programme, minimum expenditure requirements and social

obligations in favour of the Company during the First

Extension Period on the licence.

Independent petroleum consultant ERC Equipoise

prepared an assessment of prospective oil resources

attributable to the Company's Sierra Leone licences

and estimates the net unrisked mean prospective oil

resources at 1,354MMStb.

Liberia: Blocks LB-08 & LB-09

African Petroleum, through its wholly owned subsidiary

European Hydrocarbons Limited, held a 100% working

interest in production sharing contracts LB-08 and LB-

09 ("PSCs").

Post period end, the Company announced that the PSCs

had expired and will not be extended. The Company had

been in discussions with the relevant Liberian

authorities regarding the possible amendment of terms

and extension of these PSCs to enable the Company

additional time to attract an industry partner whilst

not enduring costly work commitments; however,

agreement could not be reached.

HEALTH, SAFETY, ENVIRONMENT AND SECURITY

As an operator of offshore concessions, it is the duty

of African Petroleum to provide a safe working

environment and minimize any adverse impact on the

environment. Health, safety, environment and security

policies are embedded throughout all of the Company's

core operations. In this regard, we strive for

continuous improvement as lessons learnt from past

operations are incorporated into business practices

going forward.

PRINCIPAL RISKS AND UNCERTAINTIES

As an exploration company in the oil and gas industry,

the Company operates in an inherently risky sector.

Oil and gas prices are subject to volatile price

changes from a variety of factors, including

international economic and political trends,

expectation of inflation, global and regional demand,

currency exchange fluctuations, interest rates and

global or regional consumption patterns. These

factors are beyond control of the Company and may

affect the marketability of oil and gas discovered.

In addition, the Company is subject to a number of

risk factors inherent in the oil and gas upstream

industry, including operational and technical risks,

reserve and resource estimates, risks of operating in

a foreign country (including economic, political,

social and environmental risks) and available

resources. We recognise these risks and manage our

operations in order to minimise our exposure.

OUTLOOK

We are pleased to have a firm operational catalyst on

the horizon in the form of the high impact exploration

well that we will be drilling with our partner Ophir

Energy next year on licence CI-513 in Côte d'Ivoire.

Due to the high level of industry interest that we

continue to receive for this licence, the Board is

considering its options with regards to minimising its

cost exposure to the well by farming down further

equity interest. In any event, we will retain a

material interest in a near term, high impact well,

the prospectivity of which has the potential to be

truly transformational for African Petroleum.

The market backdrop for exploration activities remains

challenging; however, we have confidence in the world

class acreage within our portfolio and the strength of

our relationships with our host governments and

leading industry players with whom we maintain

progressive dialogue.

We continue to focus on our dual objectives of

obtaining licence extensions and formalising

partnerships. The outcome of these two objectives are

largely intertwined which adds to the complexity of

our ongoing negotiations, however we are encouraged by

the dialogue that we are having with the relevant

authorities and potential industry partners and hope

to formalise agreements in due course.

STATEMENT OF RESPONSIBILITY

We confirm that, to the best of our knowledge, the

condensed set of financial statements for the third

quarter of 2016, which has been prepared in accordance

with IAS34 Interim Financial Statements, provides a

true and fair view of the Company's consolidated

assets, liabilities, financial position and results of

operations, and that the management report includes a

fair review of the information required under the

Norwegian Securities Trading Act section 5-6 fourth

paragraph.

For further information, please contact:

Jens Pace, Chief Executive Officer

Stephen West, Chief Financial Officer

Tel: +44 20 3655 7810

Angeline Hicks, Company Secretary

Tel: + 61 401 489 883

Media Contacts:

Buchanan

Ben Romney/Chris Judd

Tel: +44 207 466 5000

This information is subject to disclosure requirements

pursuant to section 5-12 of the Norwegian Securities

Trading Act.