PetroNor E&P ASA

Quarterly Report • Aug 31, 2015

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 JUNE 2015

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 JUNE 2015

Please find enclosed African Petroleum Corporation

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

unaudited financial report for the

quarter ended 30 June 2015.

Highlights

- Binding joint bidding agreement signed with a

large London listed oil and gas company on licence

Block CI-513 in Côte d'Ivoire. Completion of the

transaction is subject to negotiation and entry

into commercial agreements

- Advanced farm-out discussions with numerous

interested parties across the Company's assets,

including The Gambia and Senegal. Recent

exploration success by third party operators in the

area has led to a significant increase in the level

of interest in these assets

- The Company shares were listed on the Open Market

of the Frankfurt Stock Exchange in June 2015

- Upgraded prospective resources were announced for

the Company's 100% owned and operated Licence

Blocks SL-03 and SL-4A-10 in Sierra Leone. The

independently assessed net mean prospective oil

resources relating to the Sierra Leone Licences are

1,354MMstb. Further resource updates are planned

before year end; however, internal work has shown a

further >2.7 billion barrels of potential in the

acreage (these numbers will be independently

assessed in due course)

- Approximately US$3.0 million cash at bank as at

30 June 2015, together with US$13.1 million

restricted cash

- In line with current industry practice, the

Company has implemented a cost cutting initiative

from 1 July 2015, and the Company continues to

explore further cost saving measures

Company Background

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

the National Stock Exchange of Australia (AOQ) 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. The Company is a significant net acreage

holder in West Africa with estimated net unrisked

mean prospective oil resources in excess of 12.5

billion barrels.

African Petroleum operates 10 licences in five

countries offshore West Africa (Côte d'Ivoire,

Liberia, 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

during 2014 by Total in Côte d'Ivoire and Cairn

Energy in Senegal and during 2015 by Kosmos Energy

in Mauritania.

The Company continues to achieve key operational

milestones across its 10 licences, having rapidly

matured its exploration portfolio by acquiring more

than 18,500km2 of 3D seismic data and drilling

three exploration wells, one of which was an oil

discovery at Narina-1 in Liberia. African Petroleum

is the largest net acreage holder in the West

African Transform Margin, alongside industry majors

such as Anadarko Petroleum, Chevron Corporation,

ExxonMobil, Total, and Lukoil.

CEO Statement

"This quarter has seen African Petroleum make

significant progress towards achieving its

strategic objectives for 2015. We were delighted to

have signed a binding joint bidding agreement with

a London listed oil and gas company in Côte

d'Ivoire. African Petroleum looks forward to

completing the transaction so that we can commence

an active near term exploration programme in Côte

d'Ivoire.

The Company remains in advanced discussions with a

number of high quality industry players in relation

to our acreage in The Gambia and Senegal. We hope

to mature these discussions into farm out

transactions and look forward to updating the

market during H2 2015."

Operational & Corporate Update

COST-CUTTING INITIATIVE

Whilst the Company is comfortable that its funding

position will be significantly enhanced by the

completion of farm-in transactions during the

second half of this year, the Board remains focused

on reducing overhead costs. Further to an in-depth

review, the Board has deemed it financially prudent

to significantly reduce remuneration as part of the

Company's ongoing commitment to capital discipline.

FARM OUT PROCESS

African Petroleum is seeking strategic partners on

its ten licences in Côte d'Ivoire, Liberia,

Senegal, The Gambia and Sierra Leone in order to

share risk and potential reward of the Company's

exploration programme, with an immediate focus on

Côte d'Ivoire, The Gambia and Senegal.

Côte d'Ivoire

As announced on 29 June 2015, African Petroleum has

signed a binding joint bidding agreement with a

London listed oil and gas company to provide a

framework for the incoming third party to secure a

45% operated interest in a Production Sharing

Contract (on terms to be agreed) covering the

Company's Block CI-513 licence area in Côte

d'Ivoire. It is intended that African Petroleum

will hold a non-operated interest of 45%, with the

remaining 10% carried interest held by Petroci, the

National Oil Company of Côte d'Ivoire.

Completion of the transaction is subject to

negotiation and entry into commercial agreements

and several conditions precedent including, but not

limited to, the agreement and approval of the

Government of Côte d'Ivoire.

African Petroleum and the incoming party are

working together towards completion of the

transaction as soon as possible, and the Company

expects to make further announcements, including

further details of commercial terms, in due course

as progress is made.

The Gambia & Senegal

The Company is in advanced farm out discussions

with several interested parties across the

Company's Gambia and Senegal assets. The recent

exploration success of third party operators within

this area, namely Cairn Energy in Senegal and

Kosmos in Mauritania, has led to a significant

increase in the level of interest in these assets.

There has been a 60% increase in visits to the

Company's data room during H1 2015 from a high

calibre of companies, a number of whom have

confirmed their interest in pursuing a transaction

and have initiated detailed due diligence. The

Company seeks to attract binding offers as soon as

possible. Further announcements on progress will

be made in due course.

Liberia

Following announcements previously made by African

Petroleum in Q4 2014 and Q1 2015, on 30 June 2015

African Petroleum announced that a non-binding term

sheet with a private London based independent oil

and gas company to farm in to the Company's 100%

owned Liberian LB-08 licence ("Term Sheet") had now

lapsed due to lack of progress within the extended

timeframe granted to the third party (as announced

on 20 March 2015).

African Petroleum was disappointed to see the LB-08

Term Sheet lapse, but this was as a result of

external issues faced by the third party rather

than any issues with the Company's asset.

Although the Term Sheet did not yield a transaction

on this occasion, the intention remains to seek a

partner on the Company's prospective LB-08 and LB-

09 licences in Liberia in due course. The Company

is engaged with a number of parties on these assets.

LISTING ON THE OPEN MARKET FRANKFURT STOCK EXCHANGE

On 11 June 2015, African Petroleum announced that

the shares of the Company were listed on the Open

Market (Regulated Unofficial Market) of the

Frankfurt Stock Exchange under the WKN (German

securities identification code) A1C1G9.

The Directors believe that a listing on the Open

Market may result in African Petroleum's shares

obtaining an additional trading avenue with

possible benefits of enhancing share liquidity.

This listing will facilitate easier access to

trading in the Company's shares by retail investors

in Germany and Switzerland where we believe there

is interest.

UPGRADED PROSPECTIVE RESOURCES, SIERRA LEONE

On 1 April 2015, African Petroleum announced an

update to its prospective oil resources at its 100%

owned and operated Licence Blocks SL-03 and SL-04A-

10 in Sierra Leone ("Sierra Leone Licences").

The Company engaged the independent petroleum

consultant, ERC Equipoise Ltd, to prepare an

updated assessment of prospective oil resources

attributable to the Company's Sierra Leone Licences

(the "SL ERCE Letter"). The SL ERCE Letter of

prospective resources includes four prospects and

estimates the net prospective oil resources

relating to the Sierra Leone Licences as follows:

Mean (MMstb)

Net Net

Unrisked Risked

Prospective Prospective

Oil Oil

Licence Resources Resources

Sierra Leone

SL-03 and SL-4A-10 1,354 223

Interpretation work on the new SL-04A-10 3D seismic

has identified exciting deepwater prospects with

strong AVO response. A high impact portfolio has

now been evaluated and a further >2.7 billion

barrels of resources have been identified

internally in the Sierra Leone licences by African

Petroleum, adding to the already published

independent CPR numbers. The new internal AVO work

significantly mitigates the potential risk

perception of these assets.

SHARE CAPITAL INCREASE FOLLOWING REPAIR OFFERING

On 16 April 2015 the Company announced the issue of

an additional 11,604,331 new shares and 5,802,150

options that were allocated to investors who

participated in a repair offering raising a total

of NOK 4,061,516 (approximately US$505,000).

The repair offering followed the private placement

completed by the Company in March 2015 that raised

NOK 95,016,200 (approximately US$12.5 million) from

institutional investors. The intention of the

repair offering was to allow the Company's

supportive retail shareholders an opportunity to

participate in a raise on the same terms as the

private placement.

Licence Information

Côte d'Ivoire: Blocks CI-509 & CI-513

Licence Overview

In Côte d'Ivoire, African Petroleum holds a 90%

working interest in offshore licences CI-509 and CI-

513 (the "CI Licences"), the remaining 10% is held

by Petroci, the National Oil Company of Côte

d'Ivoire. The Company was awarded CI-513 in

December 2011 and CI-509 in March 2012, with a

combined net acreage of 2,283km2.

Licence Activities

In October 2012, the Company acquired 4,200km2 of

3D seismic data over the CI Licences, fulfilling

the seismic work commitments of the first

exploration phase for both licences. Fast-track 3D

seismic data was received in November 2012, while

final 3D seismic depth processing of the entire

survey was completed in March 2014. Interpretation

of the data has identified a number of significant

prospects, with net unrisked mean prospective oil

resources of 2,130MMStb (ERC Equipoise letter,

January 2015).

Total's Saphir-1XB oil discovery in CI-514 in April

2014, has effectively de-risked the Company's

adjacent acreage. African Petroleum traded the 3D

seismic covering both Total's CI-514 operated

acreage and the CI-508 acreage immediately north of

CI-513 and CI-509 held by the Vitol operated group.

In January 2015, following an independent

assessment of the Côte d'Ivoire prospects by ERC

Equipoise, the Company announced an additional

570MMStb to be added to the net unrisked

prospective oil resources.

Recent Updates

On 29 June 2015, African Petroleum announced that

it has signed a binding joint bidding agreement

with a London listed oil and gas company to provide

a framework for the incoming party to secure a 45%

operated interest in a Production Sharing Contract

(on terms to be agreed) covering the Company's

Block CI-513 licence area in Côte d'Ivoire. It is

intended that African Petroleum will hold a non-

operated interest of 45%, with the remaining 10%

carried interest held by Petroci, the National Oil

Company of Côte d'Ivoire.

Completion of the transaction is subject to

negotiation and entry into commercial agreements

and several conditions precedent including, but not

limited to, the agreement and approval of the

Government of Côte d'Ivoire.

In January 2015, African Petroleum announced that

independent petroleum consultant ERC Equipoise

prepared an updated assessment of prospective oil

resources attributable to the Company's Côte

d'Ivoire Licences. This updated assessment, in

conjunction with the ERC Equipoise Competent

Persons Report (April 2014), estimates the net

unrisked mean prospective oil resources at

2,130MMStb and net risked mean prospective oil

resources at 456MMStb, a 118% increase in net

risked mean prospective resources from the April

2014 Competent Persons Report.

As announced on 14 July 2014, the Company entered

into an agreement with Buried Hill Africa Limited

("Buried Hill") to farm-out a 10% interest in Block

CI-509, in return for Buried Hill funding 21.1% of

the cost of the next exploration well to be drilled

on the block and an additional cash payment to

African Petroleum representing 10% of past costs

incurred ("Farm-Out Agreement"). Under the terms of

the Farm-Out Agreement, African Petroleum will

continue as Operator on the licence. Completion of

the Farm-Out Agreement is subject to the

satisfaction or waiving of certain conditions

precedent.

Senegal: Rufisque Offshore Profond & Senegal

Offshore Sud Profond

Licence Overview

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") (together

the "Senegal Licences"). 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.

Licence Activity

As part of the initial licence entry, the Company

purchased 10,000km of 2D seismic data over its

Senegal Licences and compiled an extensive regional

database. In addition, in May 2012, the Company

completed a 3,600km2 3D seismic acquisition over

the SOSP licence block and interpretation is

ongoing. In the ROP block an existing seismic

dataset (2007 vintage) covering 1,800km2 was

purchased from Petrosen. This base dataset was

reprocessed with the final product delivered in Q4

2014 and interpretation is underway. 2D seismic

data was also reprocessed to enable better regional

well ties and geological understanding. Several

large Cretaceous turbidite fan 'leads' have already

been identified, these have been matured to

prospects as the reprocessed data has been

evaluated and included in the updated ERC Equipoise

letter released in March 2015. The independently

assessed leads and prospects estimates the net

unrisked mean prospective oil resources at

1,779MMStb.

Recent Updates

Kosmos (60% Operator) with Chevron (30%) drilled

the Tortue West prospect that straddles the

Mauritania/Senegal border at Tortue-1 and on 27

April 2015 Kosmos announced that it intersected 107

metres (351 feet) of net hydrocarbons in the

Cenomanian (four zones) and it far exceeded its pre-

drill expectations (2.1 billion barrels oil

equivalent, gross).

In January 2015, following its significant (and

potentially commercial) oil discovery at FAN-1 in

October 2014 and SNE-1 in November 2014, Cairn

Energy announced its intention to spud a series of

exploration and appraisal wells offshore Senegal

during the year. African Petroleum will monitor the

results of this programme closely as they will help

us develop a deeper understanding of the geology of

our own acreage which in turn will significantly de-

risk our future activity on the blocks.

Each of these developments, especially their

proximity to the Company's acreage, provides a very

positive context to African Petroleum's presence

offshore Senegal (and The Gambia - refer next

section). All three discoveries, two by Cairn

Energy and partner group in Senegal and the Kosmos

discovery on the Mauritanian/Senegal border, are

consistent with African Petroleum's charge model.

The farm-out process is ongoing with heightened

interest in this exciting part of African

Petroleum's portfolio.

The Gambia: Blocks A1 & A4

Licence Overview

African Petroleum holds a 100% operated working

interest in offshore licences A1 and A4

(the "Gambian Licences"), with a combined net

acreage of 2,672km2. The Company has completed a

significant 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 made by Cairn Energy in

Senegal.

Independent petroleum consultant ERC Equipoise

prepared an updated assessment of prospective oil

resources attributable to the Company's Gambian

Licences and estimates the net unrisked mean

prospective oil resources at 3,079MMStb.

Licence Activity

The Company is committed to drill an exploration

well on one of the Gambian Licences and reprocess

3D seismic on Licence Block A4 prior to 1 September

2016, the expiration date of the initial

exploration period.

Recent Updates

The Company has identified leads and prospects in

the Gambian Licences, many of which are on trend

with the discoveries made at FAN-1 (announced 7

October 2014) and SNE-1 (announced 10 November

2014) by the Cairn Energy operated group in Senegal.

African Petroleum is looking to farm-out both

Gambian Licences and has had significant interest

from international and large independent oil

companies. We expect this interest to culminate in

a farm-in in due course.

Liberia: Blocks LB-08 & LB-09

Licence Overview

African Petroleum, through its wholly owned

subsidiary European Hydrocarbons Limited, is both

operator and holder of a 100% working interest in

production sharing contracts LB-08 and LB-09

(the "Liberian Licences"), which have a combined

net acreage of 5,350km2. The Company has completed

an extensive work programme on its Liberian

Licences with 5,100km2 of 3D seismic acquired,

three wells successfully drilled, including the

discovery at Narina-1, and identified key prospects

with net unrisked mean prospective oil resources of

4,192MMStb (ERC Equipoise letter, January 2015 in

conjunction with ERC Equipoise Competent Persons

Report, April 2014).

Licence Activities

African Petroleum has completed the acquisition and

processing of 5,100km2 of 3D seismic data over both

Liberian Licences. The interpretation of this data

identified numerous prospects and leads in the

Upper Cretaceous post rift section and also a

number of Cretaceous aged syn-rift opportunities.

African Petroleum has successfully executed an

initial exploration programme in LB-09, with three

wells drilled: Apalis-1, Narina-1 and Bee Eater-1.

In September 2011, African Petroleum completed

drilling its first exploration well, Apalis-1, on

LB-09. The well encountered oil shows in several

geological units including the shallow unlogged

(Tertiary-Paleocene) and proved source rock in the

Cenomanian. The Narina-1 well was drilled on LB-09

in January 2012 and encountered a total of 31

metres of net oil pay in the primary Turonian

objective and underlying Albian reservoirs with no

oil water contact observed. African Petroleum's

discovery at Narina-1 was the first to prove a

working petroleum system in the central Liberian

basin, an extremely positive result for the Company

and one that improves the chances of success

elsewhere in the area.

The Company drilled its third well, Bee Eater-1, on

LB-09 in January 2013. The well tested an up-dip

axial section of the Turonian slope fan in which

the Company's Narina-1 discovery had been made in

2012. The Bee Eater-1 well encountered a tight

reservoir interval, but provided the impetus to

integrate the information into a predictive model

for improved reservoir in slope fans further down-

dip. These new findings have been incorporated into

a revised interpretation of the subsurface across

the portfolio, with new basin floor fan prospects

identified in both blocks.

In September 2013, the Company completed

reprocessing of all the 3D seismic data from its

Liberian Licences to improve image quality and

support the maturation of additional prospects and

appraisal opportunities. The reprocessing

highlighted that certain areas may benefit from

improved seismic imaging and further targeted 3D

reprocessing and acquisition of new high-resolution

3D seismic are currently being considered for LB-08

and LB-09. Lessons learned from previous seismic

reprocessing will be incorporated into any new data

and any new acquisition will utilise state of the

art broadband technology. If the new data is

acquired with a different azimuth, there is a

possibility to combine datasets.

In LB-08 specifically, overburden issues are not

quite so severely degrading the current seismic

image and significant improvement from new data is

expected. Recent work on Turaco and Hornbill

(included in January 2015 ERC Equipoise letter,

January 2015) in deepwater LB-08 has helped

prioritise these prospects.

Recent Updates

On 30 June 2015, it was reported that Kosmos Energy

had bid for licence blocks LB-06 and LB-07 in

Liberia . Although there are limited details

available, this is encouraging news for the region

and demonstrates the industry's continued interest

in the Liberian basin.

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

Licence Overview

In Sierra Leone, the Company holds a 100% operated

working interest in offshore licences SL-03 and SL-

04A-10 (the "Sierra Leone Licences"). 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 5,855km2 and are

located to the south of Freetown, offshore Sierra

Leone.

Licence Activities

Since gaining operatorship of the Sierra Leone

Licences, African Petroleum has acquired

approximately 2,500km2 of 3D seismic data over

block SL-03 and approximately 1,000km2 of 3D

seismic data over block SL-4A-10. In addition, the

Company has purchased regional 2D seismic data in

western Sierra Leone. The Company has already

identified a number of key prospects in its Sierra

Leone Licences, one of which has net unrisked mean

prospective oil resources of 1,354MMStb (ERC

Equipoise letter, March 2015).

In September 2014, the Company commenced and

completed the acquisition of approximately 1,000km2

of 3D seismic data on Block SL-4A-10, offshore

Sierra Leone. An initial version of the data was

made available for interpretation in late December

The seismic acquisition fulfills the remaining

obligations in Sierra Leone ahead of the next

exploration phase in both blocks.

Interpretation work on the new SL-04A-10 3D seismic

has identified exciting deepwater prospects with

strong AVO response. A high impact portfolio has

now been evaluated, and a further >2.7 billion

barrels* of prospective resources have been

identified in the Sierra Leone licences. These

numbers are in addition to the already published

CPR numbers and include additional prospects such

as Vega, Leo, Spica and Spica Lobe. These new

prospects have yet to be independently assessed in

a CPR. The new AVO support to several of these

prospects significantly changes the potential risk

perception.

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

The Company's immediate focus is to conclude the CI-

513 transaction in Côte d'Ivoire, and to farm out

the Company's assets in The Gambia and Senegal, so

that the Company can align funding opportunities

for the upcoming drilling commitments in areas with

nearby significant discoveries. The Company

remains confident that it has an asset base that is

attractive to the industry and, despite the sector

backdrop of a low oil price environment, will be in

a position to announce further agreements during H2

2015 and work towards recommencing our high impact

exploration drilling campaign.

Statement of Responsibility

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

condensed set of financial statements for the first

half of 2015, which has been prepared in accordance

with IAS34 Interim Financial Statements, gives 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:

Stuart Lake, Chief Executive Officer

Stephen West, Finance Director

Tel: +44 20 3761 6900

Angeline Hicks, Company Secretary

Tel: + 61 401 489 883

Media Contacts:

For UK and International media - Buchanan

Ben Romney/Helen Chan

Tel: +44 207 466 5000

For Norwegian media - First House

Geir Arne Drangeid

Tel: +47 913 10 458

This information is subject to disclosure

requirements pursuant to section 5-12 of the

Norwegian Securities Trading Act.