PetroNor E&P ASA

Quarterly Report • Aug 29, 2014

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 JUNE 2014

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 30 JUNE 2014

29 August 2014 - Please find enclosed African Petroleum Corporation

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

unaudited financial report for for the quarter ended 30 June 2014.

About Us

African Petroleum Corporation Limited ("African Petroleum

Corporation" or the "Company") is an independent oil and gas

exploration company operating eight licences in four countries

offshore West Africa (Côte d'Ivoire, Liberia, Senegal and Sierra Leone).

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. African Petroleum

Corporation has a significant 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 eight licences, having rapidly

matured its exploration portfolio by acquiring more that 15,000km2

of 3D seismic data and drilling three exploration wells, one of which

was a discovery. African Petroleum Corporation is among the largest

net acreage holders in the West African Transform Margin, rivalling

industry majors such as Anadarko Petroleum, Chevron Corporation

and Lukoil. The Company has mean prospective oil resources in

excess of 5.2 billion barrels, further highlighting the scale of its

presence in the region.

2014 Highlights

- In February 2014, the Company announced the appointment of new

CEO, Dr Stuart Lake

- Revised Company strategy and repositioned focus, establishing a

near, future and long term plan to consolidate its position, mature

high potential assets and, assuming success, commercialise and

expand

- In February 2014, African Petroleum Corporation announced licence

extensions in Sierra Leone and Liberia, and in April 2014 the Company

was granted extensions on its Côte d'Ivoire licences thus allowing

time to leverage learnings from third party activity in order to build a

predictive model pre-drill

- A$20 Million share placement was completed in April 2014

- Updated Competent Persons Report released in April 2014,

estimating African Petroleum Corporation's net unrisked mean

prospective oil resources in excess of 5.2 billion barrels

- In April 2014, the Company received approval to list on Oslo Axess

and in May 2014 completed an IPO raising gross funds of NOK 48.6

million (approximately US$8.2m)

- On 30 May 2014 African Petroleum Corporation completed its first

day of trading on Oslo Axess

- Subsequent to half-year end, the Company announced a farm- out

in block CI-509 (Côte d'Ivoire), secured a 3D seismic contract on its

SL-04A-10 licence (Sierra Leone) and became a significant

shareholder in NSX listed International Petroleum Limited

- Additionally, subsequent to half-year end in preparation for the

anticipated 2015 drilling campaign, African Petroleum Corporation

completed the purchase of well-heads on behalf of the Company's

subsidiary African Petroleum Côte d'Ivoire Limited

CEO Statement

"2014 has proved an exciting time for the Company, having secured a

listing on Oslo Axess, licence extensions in Côte d'Ivoire, Sierra Leone

and Liberia, raised US$27 million and, subsequent to half-year end,

farmed-out 10% of Block CI-509 and signed an agreement to

commence 3D seismic in Sierra Leone, it is clear that we have

achieved a number of significant objectives this year. The Company is

in an excellent position to move into the next phase of delivery and

growth, and we anticipate making some significant announcements

over the coming six months. I feel confident, with these important

milestones already achieved, African Petroleum Corporation can move

forward and unlock the potential of our 5.2 Bnbbls of prospective

resources."

Operational Update

Côte d'Ivoire

- Water depth: 900 - 3,150m

- 90% working interest in offshore licences CI-513 and CI-509 with

combined net acreage of 2,284km2

- Acquired 4,200km2 seismic data over Côte d'Ivoire licence blocks

- Key prospects identified with net unrisked mean prospective oil

resources of 1,560 MMstb

- Significant well campaigns in neighbouring blocks; Total's Saphir-

1xB discovery in April 2014 de-risks acreage and our prospect

portfolio by proving oil charge (the earlier pre-drill principal risk)

- One-year licence extensions on the exploration period granted in

April 2014

- Farm-out agreement announced 14 July 2014

In Côte d'Ivoire, African Petroleum Corporation 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. 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).

On 22 April 2014 African Petroleum Corporation 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.

This 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 recently completed 3D seismic

depth processing into the optimisation of exploration well locations as

several new amplitude supported prospects have now arisen from the

newly processed PSDM 3D data and

prior prospects mapped for the 2014 CPR are now being reassessed

with the new data.

The new PSDM can now be better calibrated to the recent results of

Total's oil discovery in CI-514, as African Petroleum Corporation 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. The CPR will be updated with the incorporation of the

new interpretation of the newly processed PSDM prior to year-end.

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. African

Petroleum Corporation continues to seek strategic partners in the

Côte d'Ivoire acreage. Significant well campaigns are due to take place

offshore Côte d'Ivoire in 2014, with exploration and appraisal wells

planned by, amongst others, Vitol, Anadarko and Total. In April 2014,

Total announced a discovery of hydrocarbons in block CI-514,

adjacent to African Petroleum Corporation's acreage with 40 metres of

net oil pay and 34° API light oil. These catalyst wells provide potential

to de-risk the Company's acreage.

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 Corporation

representing 10% of past costs incurred ("Farm-out Agreement").

Under the terms of the Farm-out Agreement, African Petroleum

Corporation will continue as Operator on the licence and completion

of the Farm-out Agreement is subject to the satisfaction or waiving of

certain conditions precedent, which, apart from one pertaining to

government approval of the transfer, must be satisfied or waived no

later than 1 November 2014 (unless extended in accordance with the

Farm-out Agreement).

Liberia

- Water depth: 900 - 2,800m

- 100% working interest in production sharing contracts LB-08 and

LB-09 with a combined net acreage of 5,352km2

- Three wells drilled to date, including the oil discovery at Narina-1

- A number of key prospects identified with net unrisked mean

prospective oil resources of 3,230MMstb

- High-resolution 3D seismic data planned to de-risk acreage further

- Announced two-year extension of Liberia licence blocks in February

2014

In Liberia, African Petroleum Corporation is the operator and holds a

100% working interest in production sharing contracts LB-08 and LB-

09 with combined net acreage of 5,352km2. The Company has

conducted an extensive work programme on its Liberian licences. In

2010, African Petroleum Corporation 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 synrift opportunities.

African Petroleum Corporation has successfully executed an

exploration programme in LB-09, with three wells drilled: Apalis-1,

Narina-1 and Bee Eater-1. In September 2011, African Petroleum

Corporation completed drilling of 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 well

encountered a combined total of 32 metres of net oil pay in the

primary objective Turonian and underlying Albian reservoirs with no

oil water contacts observed. African Petroleum Corporation's

discovery at Narina-1 was the first well 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 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. Certain areas may benefit from additional improvement

of the seismic image and so currently both 3D reprocessing and

acquiring new high-resolution 3D seismic is being considered for LB-

09 to cover two key exploration prospects (Narina West and Night

Heron) near the Narina-1 well. The high-resolution 3D seismic survey,

should it go ahead, will incorporate lessons learned from seismic

reprocessing and will be acquired utilising the latest state of the art

technology. 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. 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 potentially hydrocarbons exists within the

current re-processed dataset. However, near surface effects (shallow

slump zone "mass transport deposit") degrades seismic data quality.

Investment in both of these new 3D high-resolution datasets, should

they be acquired, will better delineate and further de-risk the

prospects prior to drilling. Recent rework by the Company, however,

has identified several technology uplifts that can achieve potentially

the same result through reprocessing the existing 3D seismic data at

much lower cost. Accordingly several 3D seismic reprocessing options

are being investigated first to see if the technology uplift can be

achieved without the need to acquire new higher resolution 3D

seismic data - both or either option are subject to the approval of

NOCAL.

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). Anadarko (operator) with

partners Cepsa and Mitsubishi plan to drill 2 wells in Q2/Q3 in block

10 (adjacent to the Company's acreage) this year. Again, the results of

these wells will have some bearing on the prospectivity of African

Petroleum Corporation's acreage.

Senegal

- Water depth: 2,000 - 3,500m

- 81% working interest in exploration blocks Rufisque Offshore

Profond and Senegal Offshore Sud Profond with combined net acreage

of 14,804km2

- Extensive regional database is currently being interpreted

- Third party drilling activity will aid in the evaluation of the licences

In Senegal, African Petroleum Corporation 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. To date, the Company has acquired 10,000km2 of 2D

seismic data over the Senegal Licences and has compiled an extensive

regional database. In May 2012, the Company completed a 3,600km2

3D seismic data acquisition over the SOSP licence block. In the ROP

block an existing 3D seismic dataset (2007 vintage) covers 1,800km2

and was purchased from Petrosen.

This base dataset will benefit from reprocessing, which is underway

and the final product will be delivered in Q4 2014. Several large

Cretaceous turbidite fan 'leads' have been identified, these will be

matured to prospects when the reprocessed data has been evaluated.

Oil was previously encountered by other operators just to the East in

the Rufisque Dome and accordingly the petroleum system is proven in

the area. Cairn Energy and Conoco Phillips have commenced a two

well drilling campaign offshore Senegal during 2014, and the results

from this campaign will aid in the evaluation of the prospectivity of

African Petroleum Corporation's Senegal Licences.

Cairn Energy operated block, Sangomar Offshore Deep, commenced

its drilling campaign in Q2 2014. The drilling of FAN-1 was delayed

due to some necessary rig maintenance, however, the well has now

been completed and African Petroleum Corporation Limited

anticipates results to be announced in Q3 2014. The results of this

well has the potential to further de-risk the Company's acreage.

Sierra Leone

- Water depth: 2,800 - 3,800m

- 100% working interest in offshore licences SL-03 and SL-4A-10 with

combined net acreage of 5,855km2

- Significant 3D and 2D seismic data acquired over the licence area

- A number of key prospects have been identified, one of which has

net unrisked mean prospective oil resources of 434MMstb

- Two year extension agreed for the first exploration period in the SL-

03 licence

- Subsequent to half-year end, a contract to acquire >1,000km2 of

3D seismic data over the SL-4A-10 licence

In Sierra Leone, the Company holds a 100% operated working interest

in offshore licences SL-03 and SL-4A-10. African Petroleum

Corporation was awarded a 100% interest in SL-03 in April 2010,

which is currently in its initial exploration period, while licence SL-4A-

10 was awarded as part of Sierra Leone's third offshore licencing

round in 2012 and is also in the initial exploration period. 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.

Since gaining operatorship of the Sierra Leone licences, African

Petroleum Corporation has acquired 3D seismic data covering

2,500km2 on block SL-03 and 2D seismic data over the SL-4A-10

licence and is currently performing extensive geological and

geophysical work on both blocks. The Company has already identified

a number of key prospects in the Sierra Leone licences, one of which

has net unrisked mean prospective oil resources of 434 MMstb (ERC

Equipoise, CPR 2014). Following discussions with the Government of

Sierra Leone, 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. On SL-4A-10, the

Company has interpreted existing 2D seismic and has identified a

number of promising prospects for verification. TGS-Nopec acquired a

multi-client 3D seismic survey over parts of SL-4A-10 in October

2011, which the Company is considering to licence for further

geological and geophysical work.

Subsequent to half-year end, on 11 July 2014 the Company

announced that it had signed a contract to acquire more than

1,000km2 of 3D seismic data on Block SL-4A-10, offshore Sierra

Leone. The seismic acquisition over this block commenced in Q3 2014

and will cover the rest of the Vega lead.

Health, Safety, Environment and Security

As an operator of offshore concessions, it is the duty of African

Petroleum Corporation 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 recent Ebola outbreak in West Africa, African Petroleum

Corporation has implemented precautionary measures to ensure the

safety of our 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.

On 31 July 2014 Liberia and Sierra Leone declared a State of

Emergency, whereby they ordered the closure of schools and markets

and the quarantining of affected communities in an attempt to halt

the Ebola epidemic. African Petroleum Corporation is following the

government protocol and is currently in consultations with host

government officials to see how strategic social investments can be

leveraged to combat Ebola.

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, expectations of inflation, global and

regional demand, currency exchange fluctuations, interest rates and

global or regional consumption patterns. These factors are beyond

the 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 to

the extent practical.

Outlook

The Company continues to work towards building its reputation as a

fast moving explorer in both emerging and frontier basins. Having

already achieved a number of significant milestones set out in the

strategic objectives for 2014, the Company's focus is to secure long-

term partners in order to share the risk and potential reward of our

low cost exploration programme. Such moves will be a significant step

towards our goal to deliver optimum value and return to our

stakeholders.

2014 continues to see significant exploration activity along the West

African Transform Margin by majors and independents alike, with a

discovery made by Total in Côte d'Ivoire in April 2014 and well results

expected from Cairn's exploration well in Senegal and Anadarko's

wildcat in Liberia in due course. African Petroleum Corporation is in a

good position to learn from these results and leverage from this

information effectively.

Statement of Responsibility

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

financial statements for the first half of 2014, 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 3435 7700

Angeline Hicks

Company Secretary

Tel: +61 401 489 883

Media Contacts:

For UK and International media:

Mark Antelme/Charlie Stewart, Bell Pottinger

Tel: +44 207 861 3800

For Norwegian media:

Geir Arne Drangeid, First House

Tel: +47 913 10 458

Geir Gjervan, First House

Tel: +47 908 79 108

This information is subject to disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.