PetroNor E&P ASA

Earnings Release • Mar 27, 2015

COMPANY UPDATE

COMPANY UPDATE

African Petroleum Corporation Limited ("African

Petroleum" or the "Company"), an independent oil

and gas exploration company operating ten licences

in five countries offshore West Africa, is pleased

to provide the following update on its activities.

Funding Update

African Petroleum has successfully raised NOK

95,016,200 (approximately US$12.5 million) in gross

proceeds through the allocation of 271,732,000

offer shares at a subscription price of NOK 0.35

per share ("Private Placement"). The Company was

particularly pleased by the confidence it received

from new and existing blue-chip institutional

investors, and the Board is encouraged to have

completed the Private Placement considering the

current uncertainly in world oil markets.

The Company is offering the remaining balance of

54,346,000 shares to raise up to an additional NOK

19 million (approximately US$2.5 million) to the

retail sector priced at NOK 0.35 with a free two-

year NOK 0.75 share option for every one share

subscribed for ("Subsequent Repair Offering"). The

subscription period for the Subsequent Repair

Offering closes on 27 March 2015.

A prospectus in connection with the Private

Placement and Subsequent Repair Offering was

approved by the Financial Supervisory Authority of

Norway on 16 March 2015 and issued, subject to

regulatory restrictions in certain jurisdictions,

by the Company on 17 March 2015. Proceeds from

the Private Placement and Subsequent Repair

Offering will be used to strengthen the Company's

balance sheet and liquidity position, to fund the

Company's ongoing exploration programme, including

seismic costs and licence fees, as well as provide

working capital and for general corporate purposes.

Based on the Company's current cash position, after

receipt of net proceeds from the Private Placement

and Subsequent Repair Offering, and the progress of

ongoing discussions with a number of third parties

regarding potential transactions across assets in

our portfolio, the Board believes the Company is

sufficiently funded for the near term.

Operational Progress

The Company's independently verified net unrisked

prospective oil resources have more than doubled

from 5.2 billion barrels in March 2014 to 11.6

billion barrels in March 2015 - mainly due to

significant increases in The Gambia, Cote d'Ivoire

and Senegal where recent discoveries by third

parties have materially increased the Company's

chance of success in the region. This sharp

increase in unrisked prospective resources is a

result of detailed technical work carried out by

African Petroleum across the portfolio and

highlights the considerable strides the Company has

taken with progression of the portfolio, having

increased the resources base by over 480% since

2011. The Company is currently finalising an

independent review of the prospective resources in

Sierra Leone that will be announced to the market

in due course.

African Petroleum currently holds net unrisked

resources of 11.6 billion barrels together with the

large equity ownership positions in all of the ten

licences (ranging from 90-100%). This provides the

Company with significant upside potential and

provides considerable flexibility and optionality

during farmout negotiations as we seek to reduce

our exposure whilst ensuring we retain as much of

the upside potential and value on behalf of our

shareholders.

Current Activity

The Company continues to prepare for drilling

operations, scheduled for late 2015/2016, and is

currently engaged in ongoing dialogue with various

rig contractors. The Company is particularly

encouraged by the decreasing drilling and service

costs, and the potential synergies with third

parties.

Furthermore the relevant Environmental Impact

Assessments required ahead of drilling are largely

completed, whilst the wellheads ordered over seven

months ago will shortly be due for delivery.

The Company has been encouraged by the recent drill

success by Cairn Energy and partners in Senegal

with the FAN-1 and SNE-1 discoveries - the latter

already reported to be commercial by Cairn Energy

and partners with 330 million barrels of reserves.

Furthermore, Total S.A. was successful in Côte

d'Ivoire at the Saphir-1XB well directly adjacent

to African Petroleum's acreage. Most critically all

these material discoveries, many in the billion

barrel in place range, lie adjacent to our acreage

and on trend with our planned drill operations over

the coming two years, giving us renewed confidence

in the quality of our acreage and our ability to

secure partners on these assets on favourable terms

going forward.

In this regard, the Company has seen significant

progress on discussions with potential industry

partners, with increasing interest in our

Senegalese and Gambian assets, amongst others.

Discussions continue to advance across our asset

base on a number of parallel fronts as we seek to

bring in partners as part of the new strategy.

Whilst the Company was disappointed at the recent

delay of a third party farming in to our Liberian

assets due to circumstances outside of both our and

their control (refer Company announcement 20 March

2015), we are encouraged that they remain very

interested with working with African Petroleum. The

Company remains confident that a deal will be

concluded in due course. Across the other assets we

are in discussions both with multiple third parties

and Governments as we move forward.

In line with management's commitment to reduce

overheads, the Company has recently moved its

London office to a new location. The new premises

are adjacent to our drill team's offices, so we are

benefiting for a more synchronised approach as we

move into a new era and approach operational

activity.

Marketing Materials

Recently the Company has seen increased media

interest and as a result several recent interviews

are now available online and through our website.

Investors are encouraged to hear our latest

interview by IG Group on "African Petroleum

maximising potential returns with a programme of

derisking". The link can be found on YouTube or on

the Company website.

Lastly, an analyst report by Edison Investment

Research was published on 23 March 2015 and can

also be found on our website.

Commenting on this update, CEO Dr. Stuart Lake said:

"We are obviously disappointed not to have

concluded the farmout agreement of LB-08 within the

previously stated timeframe; however, we would

remind shareholders that we remain in active

dialogue with this potential partner and both

parties remain hopeful of completing the deal on

the agreed terms within the renewed timeframe.

We continue to have encouraging and constructive

dialogue with a number of potential industry

partners across the rest of our highly prospective

portfolio.

Furthermore, the combination of the fully

subscribed Private Placement that we concluded and

the large equity positions we hold across all of

our licences provides us with flexibility during

our negotiations which underpins our confidence

that we will be able to achieve terms which are in

the best interest of the Company and its

shareholders."

For further information, please contact:

Stuart Lake, Chief Executive Officer

Stephen West, Finance Director

Tel: +44 203 761 6900

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

Geir Gjervan

Tel: +47 908 79 108

About African Petroleum Corporation

African Petroleum Corporation is a dynamic,

independent oil and gas exploration company

operating ten licences in five countries offshore

West Africa. The Company's assets are located in

fast-emerging hydrocarbon basins, principally the

West African Transform Margin, where several

discoveries have been made in recent years,

including African Petroleum Corporation's Narina-1

discovery in February 2012, which proved a working

hydrocarbon system in the Liberian basin. With a

combined net acreage position of 30,967km2 through

its licences in Côte d'Ivoire, Liberia, Senegal,

Sierra Leone and The Gambia, the Company has

matured its portfolio rapidly, acquiring more than

18,500km2 of 3D seismic data and successfully

drilling three wells, one of which was the first

hydrocarbons discovery in the offshore Liberian

deep-water basin.

For more information about African Petroleum

Corporation, please see www.africanpetroleum.com.au

This information is subject to disclosure

requirements pursuant to section 5-12 of the

Norwegian Securities Trading Act.