PetroNor E&P ASA

Quarterly Report • Jan 30, 2015

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

30 January 2015 - On behalf of the Board of African

Petroleum Corporation Limited ("African Petroleum"

or the "Company"), we declare that the Board has

reviewed the operations of the Company and, in the

opinion of each member of the Board:

(a) all matters that require disclosure have

been disclosed by the Company in accordance with

Listing Rules of the NSX; and

(b) the market remains fully informed as to the

prospects and activities of the Company

HIGHLIGHTS

CORPORATE

# On 23 December 2014, the Company announced

that it signed a non-binding term sheet agreeing

terms with a private London based independent oil

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

owned Liberian LB-08 licence for 50% equity

# Cairn Energy announced a second oil

discovery in Senegal at SNE-1, in acreage adjacent

to African Petroleum; preliminary estimates

indicate it is a commercial discovery with

contingent resource ranging from P90 150 MMbbls,

P50 330 MMbbls and P10 670 MMbbls reported by Cairn

Energy, the operator. IHS reported it as the

biggest exploration oil discovery globally in 2014.

African Petroleum has many lookalike prospects to

this and the prior Cairn discovery at FAN-1 in both

The Gambia and Senegal.

# Approximately US$3.9 million cash at bank

as at 31 December 2014, together with US$12m

restricted cash that will be released upon the

achievement of certain drilling milestones in Côte

d'Ivoire

# On 15 December 2014, Ian Philliskirk joined

African Petroleum as the Company's Group General

Counsel. Mr Philliskirk has over 20 years of

corporate legal experience in a number of

international companies

# Significant progress made with the farm-out

process: high level of interest in our licences

from a number of international companies with

increased focus on Côte d'Ivoire, Senegal and The

Gambia following significant nearby discoveries

made during 2014 by Cairn Energy in Senegal and

Total in Côte d'Ivoire

OPERATIONS

# The Gambian licences A1 and A4 have been

reinstated on a 100% basis to African Petroleum

through two wholly owned subsidiaries. The Gambian

acreage is on trend with two discoveries made

during 2014 in Senegal and has many analogue

prospects

# On 18 December 2014, African Petroleum,

through its wholly owned subsidiary African

Petroleum Senegal Limited, entered into the First

Renewal Period on licence Senegal Offshore Sud

Profond with an 18 month extension and no drilling

obligations

# In November 2014, an Environmental Impact

Assessment was tendered for the drill activity

anticipated to commence in Côte d'Ivoire late 2015

# Subsequent to quarter end, African

Petroleum announced an upgrade to its prospective

resources in Côte d'Ivoire and Liberia. ERC

Equipoise, the independent petroleum consultant,

prepared an updated assessment of prospective

resources. This assessment resulted in additional

1,532 MMstb unrisked prospective oil resources. Our

total net unrisked mean prospective oil resources

exceed 7.3 Billion barrels. We expect further

updates on our Gambian, Sierra Leone and Senegalese

Licences in H1 2015. The Company expects a

significant uplift in the prospective resources

number therein from both work performed by the

Company and from third party catalyst well results.

The information will be released through formal

letters and an updated CPR over the coming months

# African Petroleum continues to work with

Sierra Leone and Liberian governments following the

outbreak of Ebola in 2014. The Company is working

with an NGO in country to raise awareness of the

disease

Stuart Lake, CEO commented:

"Substantial progress has been made in all areas of

our business during the fourth quarter. Despite

the challenging industry backdrop caused by the

declining oil price, experienced in the latter part

of the year, we are confident oil companies will

continue to explore the best regions in the world

and our acreage in West Africa undoubtedly presents

a huge opportunity. As the largest net acreage

holder in the region, we are best placed to benefit

from interest by the large independents and majors

alike and recent discoveries in Senegal and Côte

d'Ivoire have certainly polarised thoughts and

earlier misconceptions.

A significant step towards our goal of securing a

farm-out deal was the signing of a term sheet for

our Liberia License LB-08 in December 2014. We

continue to hold encouraging discussions with a

number of partners, and reiterate our high degree

of confidence that we will complete further farm-

out transactions on favourable terms in the first

half of 2015. African Petroleum is poised for an

active and transformational year and we look

forward to reporting on our progress as we make

further steps towards becoming a leading

independent exploration company."

Company Background

African Petroleum is an independent oil and gas

exploration company with ten licences in five

countries offshore West Africa (Côte d'Ivoire,

Liberia, Senegal, The Gambia and Sierra Leone).

The Company's assets are located in fast-emerging

hydrocarbon basins, where several discoveries have

been made in recent years, including three

significant discoveries during 2014: one by Total

in Côte d'Ivoire and two by Cairn Energy in Senegal.

African Petroleum has a real opportunity to become

a leading independent exploration company through

its highly prospective acreage offshore West

Africa.

The Company continues to achieve key operational

milestones across its ten 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, rivaling

industry majors such as: Anadarko Petroleum,

Chevron Corporation, Exxon Mobil, Total, ENI and

Lukoil. The Company has mean prospective oil

resources in excess of 7.3 billion barrels (ERC

Equipoise Competent Persons Report April 2014 in

conjunction with ERCE Audit January 2015), further

highlighting the scale of its presence in the

region.

OPERATIONS

Senegal Project: Rufisque Offshore Profond and

Senegal Offshore Sud Profond

Licence Overview

In Senegal, African Petroleum holds an 81% operated

working interest in exploration blocks Rufisque

Offshore Profond ("ROP") and Senegal Offshore Sud

Profond ("SOSP") (together the "Senegal

Licences"). The Company's Senegal Licences are

located offshore southern and central Senegal, with

a net acreage of 14,804km2.

Licence Activity

To date, the Company has acquired 10,000km2 of 2D

seismic data over its Senegal Licences and has

compiled an extensive regional database.

In May 2012, the Company completed a 3,600km2 3D

seismic acquisition over the SOSP licence block.

In the ROP block an existing seismic dataset (2007

vintage) covers 1,800km2 and was purchased from

Petrosen.

This base dataset was reprocessed with the final

product delivered in Q4 2014 and interpretation is

underway. Several large Cretaceous turbidite

fan "leads" have already been identified; these

will be matured to prospects as the reprocessed

data is evaluated and will be included in the

updated CPR anticipated to be released in H1 2015.

Recent Updates

Interest in the margin continues to grow as

evidenced by Kosmos Energy's return to the region.

In September 2014, Kosmos Energy signed a farm-in

agreement to acquire a 60% interest in two licences

offshore Senegal in return for drilling up to three

wells and acquiring approximately 7,000km2 of 3D

seismic. Reuters reported that Kosmos Energy has

committed to drill two wells up to a total value of

$240 million, and it will then drill a third well

to a value of another $120 million.

On 7 October 2014, Cairn Energy announced an

important oil discovery offshore Senegal. The

FAN-1 exploration well recovered light oil from a

series of stacked Cretaceous sandstones, with APIs

ranging from 28 to 41. Cairn Energy believes that

the discovery "may have significant potential as

a standalone discovery".

Cairn Energy drilled a second well, SNE-1, offshore

Senegal in 1,100m of water and announced, on 10

November 2014, that they had made an additional

discovery. Initial analysis of the well, as

reported by Cairn Energy, showed 95m gross oil

bearing column with a gas cap. Excellent reservoir

sands with net pay of 36m of 32 API oil and a P50

contingent resource of 330 MMbbls. FAR Ltd, one of

Cairn's partners, issued notice of discovery on

both wells and reported; "based on preliminary

estimates, it [SNE-1] is highly likely to be a

commercial discovery", a significant statement for

both African Petroleum and the country.

On 18 December 2014, the Company announced that its

subsidiary African Petroleum Senegal Limited

received confirmation from the President in the

form of a Presidential decree of entry into the

First Renewal Period on licence SOSP. Prior to

entering into the First Renewal Period, Petrosen

agreed to defer the existing well commitment of the

First Renewal Period of SOSP by 18 months to allow

for further technical work by the Company prior to

drilling.

The forward programme provides an opportunity to

analyse the data fully, prior to making a

commitment to drill the exploration well in the

second sub period of the First Renewal Period.

In January 2015, 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.

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).

The Gambia Project: Blocks A1 & A4

Licence Overview

African Petroleum holds 100% operated working

interest in offshore licences A1 and A4. The

Company has completed a 3D seismic survey with data

covering 2,500km2. The Company has found a number

of analogue leads and prospects in its acreage to

that of the recent SNE-1 discovery made by Cairn

Energy in Senegal.

Licence Activity

On 27 November 2014, African Petroleum entered into

an agreement with The Government of the Republic of

The Gambia to reinstate the Company's Licence Block

A1 and Licence Block A4 (together the "Gambian

Licences") on a 100% interest basis, and settle all

prior issues concerning the Gambian Licences. The

reinstatement of the Gambian Licences is a

significant and positive step for the Company,

particularly following the recent oil discoveries

made by Cairn Energy in Senegal.

Upon reinstatement, African Petroleum agreed to a

revised initial exploration period that will expire

on 1 September 2016 in return for a commitment to

drill an exploration well on one of the Gambian

Licences and reprocess 3D seismic on Licence Block

A4 prior to 1 September 2016.

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.

Liberian Project: Blocks LB-08 and LB-09

Licence Overview

African Petroleum is both operator and holder of a

100% working interest, in production sharing

contracts LB-08 and LB-09, which have a combined

net acreage of 5,352km2. 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 in

excess of 4,192MMstb (ERCE Audit January 2015 in

conjunction with ERCE Competent Persons Report).

Licence Activities

African Petroleum has completed the acquisition and

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

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 on 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 targeting a major Turonian fan system. The

Narina-1 well encountered a total of 32 metres of

net oil pay in the primary objective Turonian 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 outboard and

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 has

highlighted that certain areas may benefit from

improved seismic imaging and so both further

targeted 3D reprocessing and acquisition of new

high-resolution 3D seismic are currently being

considered for LB-09 to cover two key exploration

prospects (Narina West and Night Heron) near the

Narina-1 well. Detailed stratigraphic analysis and

reservoir quality prediction from seismic data will

assist in the rapid assessment of both Narina West

and Night Heron to further de-risk the licence area

to enable accurate well positioning and efficient

development in the event of appraisal success. The

high-resolution 3D seismic survey, should it go

ahead, will incorporate lessons learned from

seismic reprocessing and will be acquired utilising

state of the art broadband technology.

In LB-08, new seismic data is also being considered

to cover three prospects (Lovebird, Darter and

Turaco) in the Southern corner of the licence

area. Encouraging amplitude support for reservoir

and potential hydrocarbons exist within the current

reprocessed dataset; however, near surface effects

(shallow slump zone "mass transport deposit")

degrades seismic data quality. New 3D high-

resolution broadband datasets, should they be

acquired, will better delineate and further de-risk

the prospects prior to drilling.

The Company has identified a number of key

prospects in the Liberian licences, with net

unrisked mean prospective oil resources of

3,230MMstb (ERC Equipoise, CPR 2014).

Recent Updates

On 23 December 2014, African Petroleum signed a non-

binding term sheet agreeing terms with a private

London based independent oil and gas company to

farm-in to the Company's 100% owned Liberian LB-08

licence for a 50% equity and non operated

interest. Completion of the farm-in transaction,

as contemplated by the Term Sheet, is subject to

contract and a number of conditions precedent.

The signing of the Term Sheet is a significant

milestone for African Petroleum and, should the

farm-in transaction complete, the incoming party

will bring a breadth of knowledge and experience to

the partnership and will allow the Company to

continue its exploration programme in its acreage

offshore Liberia. Africa Petroleum and the

incoming party has sought to extend the deadline by

30 days to complete the various contract

assignments and African Petroleum with NOCAL has

supported this.

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 Liberian

Licences. This updated assessment, in conjunction

with the ERCE Competent Persons Report (April

2014), estimates the net unrisked prospective oil

resources at 4,192 MMStb.

Sierra Leone Project: 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-

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 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, approximately 1,000km2 of 3D seismic

data over block SL-4A-10 and 2D seismic data over

block SL-4A-10. 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 434 MMstb (ERC

Equipoise, CPR 2014).

In September 2013 the Company received a two-year

extension to the first exploration period for SL-

03, extending the first exploration period on the

block to April 2015.

Recent Updates

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

2014. The Vega lead looks materially exciting as

initial work supports an AVO response at the

Campanian level over a large potentially dip-closed

area. The final volume will be available in April

2015. This seismic acquisition fulfills the

remaining obligations in Sierra Leone ahead of the

next exploration phase in both blocks.

Côte d'Ivoire Project: 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 2,284km2. The Company has

acquired 4,200km2 of 3D seismic data and has

identified in excess of 2,130 MMstb net unrisked

prospective oil resources (ERCE Audit, January

2015).

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 1,560 MMstb (ERC

Equipoise, CPR 2014). These numbers will be

updated and upgraded in the new CPR (expected for

release Q1 2015) as the new seismic volume and

recent Total discovery has changed the view on this

portfolio significantly.

On 22 April 2014 African Petroleum announced PSC

Amendments to both licences CI-509 and CI-513. The

PSC Amendments include an adjustment of the licence

periods providing for one-year extensions to the

first exploration periods of both licences at the

expense of the duration of future exploration

periods.

The PSC adjustment allows the Company more time for

drilling of the first period commitment wells in

these blocks. The first exploration period for

block CI-509 is extended to March 2016 and block CI-

513 has been extended to December 2015. The Company

intends to use some of this additional time to

integrate seismic depth processing into the

optimisation of exploration well locations as

several new amplitude supported prospects have

arisen from processed PSDM 3D data on trend with

the Saphir-1XB Total discovery.

The new PSDM in being calibrated to the recent

results of Total's oil discovery in CI-514, as

African Petroleum had pre-traded the 3D covering

both Total's CI-514 operated acreage and the

acreage immediately north of CI-513 and CI-509 held

by the Vitol operated group. In January 2014,

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. The

Company has found that its acreage has been

significantly derisked by Total's discovery at

Saphir-1XB in April 2014.

The Company also intends to use the additional time

from the licence extensions to secure the

appropriate sixth generation rig for a wider

drilling programme, and build a partnership group

to explore in the promising area of the Côte

d'Ivoire deep-water margin. In preparation for the

2015 drilling campaign, the Company signed an

agreement with DrilQuip Limited to provide two SS-

15 wellheads. The purchase of these wellheads is a

positive step for the Company and a move towards

initiating the drilling campaign. African

Petroleum continues to seek strategic partners in

its Côte d'Ivoire acreage.

Recent Updates

In April 2014, Total announced a discovery of

hydrocarbons in its Saphir-1XB exploration well

block CI-514, which is adjacent to African

Petroleum's acreage. Total reported a total of 40

metres of net oil pay and 34 API light oil. This

discovery is significant for the Company's acreage

as it proves oil charge, the earlier pre-drill

principal risk.

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. The Company is delighted with this

initial farm-out, but continues to seek additional

partners in its Côte d'Ivoire acreage and

anticipates making a further announcement in H1

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 ERCE Competent Persons Report

April 2014, estimates the net unrisked prospective

oil resources at 2,130 MMstb and net risked

prospective oil resources at 456 MMstb, a 118%

increase in net risked prospective resources from

April 2014 Competent Persons Report.

Operational Update

Farm-out Update

As previously announced, 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.

In addition to the agreement announced on 14 July

2014 to farm-out a 10% interest in Block CI-509

offshore Côte d'Ivoire, on 23 December 2014 African

Petroleum announced that it had signed a non-

binding term sheet agreeing terms 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").

Pursuant to the Term Sheet, the third party has

agreed, subject inter alia to the completion of due

diligence and the entering into of mutually agreed

contracts, to acquire a 50% net participating

interest in the LB08 licence in return for the

payment of 50% of all future costs and expenditures

relating to the LB-08 licence and a contribution to

past costs and expenditures.

Completion of the farm-in transaction, as

contemplated by the Term Sheet, is subject to

contract and a number of conditions precedent.

The Company is pleased to have secured an initial

farm-in on Block CI-509 and to have signed a term

sheet for Block LB-08. In addition, significant

progress has been made on attracting additional

companies to farm-in to the acreage. The Company

has received a high level of interest in Côte

d'Ivoire, Senegal and The Gambia from a number of

international companies and Independents outside

the interest already shared for our Liberian

acreage. The significant oil discoveries made by

Cairn Energy (op.) in Senegal has led to the

heightened interest in Senegal and The Gambia and

similarly with Total's Saphir 1XB in CI 514

adjacent to our Côte d'Ivoire acreage. African

Petroleum has identified a number of analogues in

its acreage to Cairn Energy's discoveries at SNE-1

and FAN-1 and the Total discovery in Côte d'Ivoire

at Saphir-1XB.

Gambian Licences A1 and A4 Reinstated

On 28 November 2014, African Petroleum announced

that it entered into an agreement with The

Government of the Republic of The Gambia to

reinstate the Company's Licence Block A1 and

Licence Block A4 (the "Gambian Licences"), and

settle all prior issues concerning the Gambia

Licences including the discontinuation of

arbitration proceedings.

The reinstatement of the Gambian Licences is

significant and positive for the Company,

particularly following the recent oil discoveries

made by Cairn Energy in adjacent acreage in

Senegal.

As part of the agreement with The Government of the

Republic of The Gambia, African Petroleum agreed to

revise the initial exploration period that will

expire on 1 September 2016 in return for a

commitment to drill an exploration well on one of

the Gambia Licences and reprocess 3D seismic on

Licence Block A4 prior to September 2016.

The Company has 2,500km2 3D seismic data over the

licences and has identified a number of significant

prospects with net unrisked mean prospective

resources of 593 MMstb (ERC Equipoise CPR, 2014).

In H1 2015 the Company expects to release an

updated CPR and anticipates there to be significant

uplift in this number as many more prospects have

now been added to the portfolio in the light of the

recent success in the adjacent acreage by Cairn

Energy and partners.

African Petroleum Enters First Renewal Period on

Senegal Licence

On 18 December 2014, the Company announced that its

subsidiary African Petroleum Senegal Limited

received confirmation from the President in the

form of a Presidential decree of entry into the

First Renewal Period on licence Senegal Offshore

Sud Profond ("SOSP"). Prior to entering into the

First Renewal Period, Petrosen agreed to defer the

existing well commitment of the First Renewal

Period of SOSP by 18 months to allow for further

technical work by the Company prior to drilling.

SOSP has significant potential for both deep-water

submarine fans and shelf edge platform plays, both

of which have recently been proven in nearby

acreage by the Cairn Energy (op.) wells FAN-1 and

SNE-1. The Company has proposed Pre-Stack Depth

Migration (PSDM) over the licence area to improve

definition of the material prospects identified

through technical work to date. The forward

programme provides an opportunity to analyse the

data fully prior to making a commitment to drill

the exploration well in the second sub period of

the First Renewal Period.

Upgraded Prospective Resources in Côte d'Ivoire and

Liberia

Subsequent to quarter end, on 26 January 2015, the

Company announced an update to its prospective oil

resources at its 90% owned and operated CI-509 and

CI-513 offshore licence blocks in Côte d'Ivoire

("Côte d'Ivoire Licences") and its 100% owned and

operated LB-08 and LB-09 offshore blocks in Liberia

("Liberia Licences").

The Company engaged the independent petroleum

consultant, ERC Equipoise Ltd ("ERCE"), to prepare

an updated assessment of prospective oil resources

attributable to the Company's Côte d'Ivoire and

Liberia Licences (the "ERCE Audit").

The ERCE Audit of prospective resources includes

the addition of eight new prospects and has taken

into account information gathered from third party

drilling campaigns in the margin during 2014,

particularly the oil discovery made by Total in CI-

514 in April 2014.

The ERCE Audit, in conjunction with the ERCE

Competent Persons Report April 2014 ("April 2014

CPR"), estimates the net prospective oil resources

relating to the Côte d'Ivoire Licences and Liberia

Licences are as follows:

Mean (MMstb) % Increase

Net Risked

Net Net Prospective

Unrisked Risked Oil

Prospective Prospective Resources

Oil Oil from April

Licence Resources Resources 2014 CPR

Côte

d'Ivoire

CI-513 &

CI-509 2,130 456 118%

Liberia

*LB-08 &

LB-09 4,192 662 33%

Total

Updated

Portfolio

Côte

d'Ivoire

& Liberia 6,322 1,118 58%

*Liberia values include four (4) new prospects

reviewed in the ERCE Audit as well as unchanged

prospects from April 2014 CPR

The impact of de-risking through regional third

party drilling activity in Côte d'Ivoire and the

addition of new Turonian and Cenomanian prospects

as outlined in the ERCE Audit translates into the

addition of 410 MMstb in the net risked mean

prospective oil resources from the April 2014 CPR

(increase of 58%).

Corporate Update

Appointment of General Counsel

On 15 December 2014, African Petroleum announced

the appointment of Ian Philliskirk as the Company's

Group General Counsel. Mr Philliskirk has over 20

years of corporate legal experience including, 12

years working with a number of international oil

and gas companies. Most recently, Mr Philliskirk

was VP and General Counsel at Tethys Petroleum

Ltd. Prior to joining Tethys Petroleum Ltd, Mr

Philliskirk held senior positions at Pinsent Masons

LLP, Emirates National Oil Co. Ltd, Dragon Oil Plc

and Kanoo Group UAE and Oman.

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 minimise 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

learned from past operations are incorporated into

business practices going forward.

Due to the Ebola outbreak in West Africa, African

Petroleum has implemented precautionary measures to

ensure the safety of its staff. There have been

office closures in Liberia and Sierra Leone, and

local staff have been urged to work from home and

avoid dangerous regions. Currently, the Company

does not have any active operations in Sierra Leone

or Liberia.

African Petroleum is following the Liberian and

Sierra Leone government protocol and has consulted

with host government officials to see how strategic

social investments can be leveraged to combat Ebola.

Outlook

The priority for the next two years is to progress

and unlock the high potential in our West African

assets; through leveraging technology to de-risk

ahead of the drill bit and, subject to finalising

finance, through drilling key exploration wells

with strategic partners. By obtaining partners to

farm-in to our acreage, where we hold high working

interest positions between 81-100%, we will

mitigate our risk and financial exposure whilst

also enabling us to crystallise value for our

shareholders.

Despite the fall in oil price impacting sentiment

with regards to global exploration; we believe that

the industry will continue to explore the best

regions in the world and in that regard we are

confident that exploration of the West Africa

Transform Margin and the wider margin up through

The Gambia and Senegal will remain very active

going forwards evidenced by the recent entry of

Kosmos in Senegal and Exxon Mobil in Côte d'Ivoire

amongst others. Furthermore, there has been a

sizeable reduction in operating costs which

presents a significant cost-saving opportunity for

exploration focused operators such as African

Petroleum.

African Petroleum has a real opportunity to become

a leading independent exploration company through

its highly prospective acreage offshore West

Africa. Plans for our 2015 exploration campaign

have begun, with multiple prospects identified and

wellheads ordered we are in a strong position and

confident that 2015 will be a transformational year

for us. Our long-term strategy is simple: to find

commercial oil, and expand our footprint both as a

low cost operator and non-operator, leveraging our

highly skilled and experience team, utilising the

latest technology and taking advantage of the low

cost environment.