PetroNor E&P ASA

Earnings Release • Jul 31, 2014

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

31 July 2014 - On behalf of the Board of African Petroleum

Corporation Limited ("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

· Approximately US$ 16.5 million cash in bank at 30 June

2014

· In addition, approximately US$12 million restricted cash as

at 30 June 2014, being security deposits that will be released upon

the achievement of certain drilling milestones in Côte d'Ivoire

· The Company successfully listed on the Oslo Axess on 28

May 2014 under the ticker symbol "APCL", raising gross funds of NOK

48.6 million (approximately US$8.2 million)

· Mr Bjarne Moe appointed as a Non-Executive Director

OPERATIONS

· Updated Competent Persons Report published by ERC

Equipoise estimating African Petroleum Corporation's net mean

unrisked prospective oil resources in excess of 5.2 billion barrels,

released in April 2014

· PSC Amendments - Côte d'Ivoire Blocks CI-509 and CI-513,

amendments include an adjustment of the licence periods providing

for one year extensions to the first exploration periods for both

licences

Dr Stuart Lake, CEO commented:

"Following a strong start to the year, African Petroleum Corporation

has continued to achieve significant milestones, including; listing on

the Oslo Axess, securing extensions to our Côte d'Ivoire licences and

a private placement. The Company is in an excellent position to move

into the next phase of delivery and growth."

Company Profile

African Petroleum Corporation 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, rapidly maturing its exploration portfolio, acquiring more

than 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.

(*ERC Equipoise, Competent Persons Report 2014)

OPERATIONS

Liberian Project: Blocks LB-08 and LB-09

Licence Highlights

· 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 syn-rift 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 has

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 im¬age quality

and support the maturation of additional prospects and appraisal

opportunities. Certain areas would 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 3,230

MMstb (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.

Côte d'Ivoire Project: Blocks CI-509 and CI-513

Licence Highlights

· Water depth: 900 - 3,150m

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

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; the Saphir-

1xB discovery 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).

African Petroleum Corporation is actively seeking 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.

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.

Subsequent to quarter end, in July 2014, the Company announced a

Farm-Out Agreement with Buried Hill Africa Limited ("Buried Hill") in

Block CI-509, Côte d'Ivoire. This farm-out agreement, subject to

certain conditions precedent including government approval, entitles

Buried Hill to 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).

Senegal Project: Rufisque Offshore Profond and Senegal Offshore Sud

Profond

Licence Highlights

· 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 1800km2 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.

Sierra Leone Project: Blocks SL-03 and SL-4A-10

Licence Highlights

· 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

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. The Company intends to acquire a

3D survey of approximately 1,500km2 over SL-4A-10 during 2014 to

cover the rest of the Vega lead thus fulfilling the remaining licence

obligations in Sierra Leone.

Subsequent to quarter 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 is expected to commence in Q3 2014.

CORPORATE & OPERATIONS

Board Changes

Following the approval to list on the Oslo Axess in May 2014, African

Petroleum Corporation strengthened its Board further with the

appointment of Mr Bjarne Moe as a Norwegian based independent

director. Mr Moe has over 35 years' experience in the oil and gas

industry including being the former Director General of the Oil and

Gas Department of the Ministry of Petroleum, Norway. Since 2011, Mr

Moe has been an advisor to the oil and gas industry and has had

several large, international companies as clients. Mr Moe was also

appointed as a member of the Company's Continuous Disclosure

Committee. The Company welcomes Mr Moe and the wealth of

experience that he adds to the Board of Directors.

Listing Update

Following an announcement on 1 May 2014 where the Company

announced it had received approval to list on the Oslo Axess, the

Company successfully completed an initial public offering ("IPO") and

listing of the Company's shares on the Oslo Axess on 28 May 2014

under the ticker symbol "APCL". The IPO raised gross funds of NOK

48.6 million (approximately US$8.2 million) through the issue of

37,378,820 fully paid ordinary shares at an issue price of NOK1.30

(approximately A$.24) per share.

PSC Amendments Côte d'Ivoire

In April 2014, African Petroleum Corporation and the Government of

Côte d'Ivoire agreed amendments to the Production Sharing Contracts

related to Blocks CI-509 and CI-513 ("PSC Amendments"). The PSC

Amendments include an adjustment of the licence periods providing

for a one year extension to the first exploration periods of both

licences at the expense of the duration of future exploration periods.

The adjustment allows the Company more time for drilling of the first

period commitment wells in these blocks up to March 2016, in respect

of CI-509, and up to December 2016 in respect of CI-513. 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, 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.