PetroNor E&P ASA

Earnings Release • Oct 31, 2014

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

NSX - QUARTERLY ACTIVITIES REPORT AND CASHFLOW

31 October 2014 - On behalf of the Board of African

Petroleum Corporation Limited (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

# Two significant discoveries in 2014: Saphir-1XB

(Total operated oil discovery) in Côte d'Ivoire CI-514

adjacent to African Petroleum Corporation's acreage

and, more recently, FAN-1 (Cairn Energy operated well

in Senegal) that is reported to have P50 oil in place

of 950 million barrels. The Company's acreage has many

lookalike prospects to both the Total and Cairn Energy

discoveries in its adjacent acreage in Côte d'Ivoire

and Senegal respectively

# Approximately US$ 5.4 million cash at bank as at 30

September 2014, with additional funds secured in

October 2014 of US$ 3.7 million (from debtor repayment

commitments) to increase the Company's available cash

reserves

# In addition, approximately US$12 million restricted

cash as at 30 September 2014 that will be released

upon the achievement of certain drilling milestones in

Côte d'Ivoire

# Agreement, along with Range Resources Limited, to

convert International Petroleum Limited ("IOP") loan

amounts into fully paid ordinary shares so that the

Company now holds 14% and Range Resources holds 9% of

the issued capital of IOP. IOP owns 4 onshore oil

blocks in Niger covering over 70,000km2 with a modest

work programme of 4 wells, seismic and FTG

# The proceeds from the IPO fundraising in May 2014

were utilised to acquire approximately 1,000km2 of 3D

seismic in Sierra Leone and fulfil our licence

obligations on block SL-4A-10

# Significant progress made with the farm-out process:

high level of interest in Liberia, Côte d'Ivoire and

Senegal licences from a number of international

companies and industry majors

# 750,000 shares purchased on-market by four Directors

during the period

OPERATIONS

# Agreement signed to farm-out 10% interest in Block

CI-509 on a two-for-one promote basis so that 21% of

the first exploration well is paid for by the incoming

party in return for 10% equity in the licence

# Acquisition of approximately 1,000km2 3D seismic in

Sierra Leone Block SL-4A-10, fulfilling the remaining

obligations on the Sierra Leone licences for the

current exploration phase

# Contract signed with DrillQuip (Europe) Ltd to

provide two wellheads for the upcoming Côte d'Ivoire

2015 drilling programme

# A new interpretation of Liberia blocks LB-08 and

LB-09 has shown new potential that is now being shared

with NOCAL and potential farm-in partners

# New PSDM data has been acquired in Côte d'Ivoire and

3D seismic has been reprocessed for Senegal. This has

significantly improved earlier imaging and thus

further de-risked the prospectivity of the blocks in

both of these countries

# Due to the recent and significant outbreak of Ebola,

African Petroleum Corporation is following Sierra

Leone and Liberia government protocol and is currently

in consultations with host government officials and

NGO's to see how strategic social investments can be

leveraged to combat Ebola

# ERC Equipoise are in the process of updating African

Petroleum Corporation's Competent Persons Report and

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

Stuart Lake, CEO commented:

"It has been a year of progress for African Petroleum

Corporation as we continue to build our 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 before the end of the year, and to

finalise a drilling programme for 2015.

Securing a partner (or partners) to drill and meet our

licence obligations will demonstrate to the market the

value of our high potential exploration portfolio,

which has been significantly de-risked by recent

successes from Cairn Energy (Senegal) and Total (Côte

d'Ivoire) in adjacent. Equally we remain excited by

the potential in both Liberia and Sierra Leone, and

hope to build a new position shortly. Such moves will

be an important step towards our goal to deliver

optimum value and return to our stakeholders."

Company Background

African Petroleum Corporation Limited ("African

Petroleum Corporation" or the "Company") is an

independent oil and gas exploration company with 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, including two significant

discoveries during 2014 by Total in Côte d'Ivoire and

Cairn Energy in Senegal.

African Petroleum Corporation 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 eight licences,

having rapidly matured its exploration portfolio by

acquiring more than 16,000km2 of 3D seismic data and

drilling three exploration wells, one of which was a

discovery.

African Petroleum Corporation is the largest net

acreage holder in the West African Transform Margin,

rivaling 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.

OPERATIONS

Liberian Project: Blocks LB-08 and LB-09

# 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

# Two-year extension of Liberia licence blocks

announced in February 2014

In Liberia, African Petroleum Corporation is both the

operator, and holder of a 100% working interest, in

production sharing contracts LB-08 and LB-09, which

have a combined net acreage of 5,100km2. The Company

has completed 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 initial 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 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 Corporation'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 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 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 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 potentially achieve improved seismic

imaging through reprocessing the existing 3D seismic

data at a much lower cost.

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). African Petroleum Corporation

anticipates results from Anadarko (with partners

Mitsubishi and Repsol) wells Iroko-1 and Timbo-1 in

due course. Additionally, the Company awaits results

from the Chevron operated well, in licence LB-12,

drilled in Q2 2014. African Petroleum Corporation

expects this exploration activity in adjacent acreage

to de-risk its licences further.

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

Licence Highlights

# Water depth: 900-3,150m

# 90% working interest in offshore licences CI-513 and

CI-509 with combined net acreage of 2,284km2

# Key prospects identified with net unrisked mean

prospective oil resources of 1,560 MMstb

# Significant well campaigns in neighbouring blocks

# In April 2014 Total announced the Saphir-1XB

discovery which de-risks our acreage and prospect

portfolio by proving oil charge (the earlier pre-drill

principal risk)

# One-year licence extensions on the exploration

period granted in April 2014

# Agreement signed in July 2014 to farm-out a 10%

interest in Block CI-509

In April 2014, Total announced a discovery of

hydrocarbons in its Saphir-1XB exploration well block

CI-514, which is adjacent to African Petroleum

Corporation'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.

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.

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 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. In addition, 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.

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 its Côte d'Ivoire 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.

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

a combined net acreage of 14,804km2

# In October 2014, Cairn Energy, with partners

ConocoPhillips and FAR, announced a significant

discovery in the FAN-1 exploration well offshore Senegal

# In August 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

# Extensive regional database is currently being

interpreted

On 7 October 2014, Cairn Energy announced an important

and potentially commercial oil discovery offshore

Senegal. The FAN-1 exploration well recovered light

oil from a series of stacked Cretaceous sandstones,

with APIs ranging from 28° up to 41°. Cairn Energy

believes that the discovery "may have significant

potential as a standalone discovery".

In August 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. It was 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.

Both of these developments, especially their proximity

to the Company's acreage, provide a very positive

context to African Petroleum Corporation's presence

offshore Senegal.

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 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 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.

Sierra Leone Project: Blocks SL-03 & 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

# Acquisition of approximately 1,000km2 seismic data

over block SL-4A-10 was completed in Q3 2014

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

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.

During the quarter, 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 will be

available for interpretation in November 2014. This

seismic acquisition fulfills the remaining obligations

in Sierra Leone ahead of the next exploration phase in

both blocks.

CORPORATE

Farm-out Update

As previously announced, African Petroleum Corporation

is seeking strategic partners on its eight licences in

Côte d'Ivoire, Liberia, Senegal and Sierra Leone in

order to share risk and potential reward of the

Company's exploration programme.

On 14 July 2014, African Petroleum Corporation

announced that it had entered into an agreement with

Buried Hill Africa Limited ("Buried Hill") to farm-out

a 10% interest in Block CI-509 offshore Côte d'Ivoire

in return for Buried Hill funding 21.1% of the cost of

the next exploration well to be drilled on Block

CI-509 and an additional cash payment to African

Petroleum Corporation representing 10% of past costs

incurred. 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.

The Company is pleased to have secured an initial

farm-in on Block CI-509. In addition, significant

progress has been made on attracting additional

farm-out offers. In particular, the Company has

received a high level of interest in its Côte d'Ivoire

and Senegal licences from a number of international

companies and industry majors. A number of factors

have led to a significant increase in interest in the

Company's licences, primarily, the hydrocarbon

discoveries made by Total in Côte d'Ivoire and Cairn

Energy in Senegal. The Company expects this

heightened interest to culminate in further farm-in

offers in due course.

2015 Drilling Programme

In preparation for the Company's Côte d'Ivoire

drilling campaign, anticipated to commence in 2015,

the Company signed a contract with DrillQuip (Europe)

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 in

African Petroleum Corporation's acreage in Côte

d'Ivoire.

Seismic Acquisition - Sierra Leone

On 26 August 2014, African Petroleum Corporation

commenced and completed the acquisition of

approximately 1,000 sq km of 3D seismic data over

offshore licence SL-4A-10, Sierra Leone. The 3D

seismic survey was completed by TGS using the Polarcus

'Alima'. An initial version of the data will be

available for interpretation in November 2014.

Board Changes

During the period the Company announced that

Non-Executive Director Mr James Smith had stepped down

from the Board of Directors, taking effect from 1

August 2014. The Company further announced that Mr

Mark Ashurst is assuming the position of Non-Executive

Director of the Board, stepping down from his role as

Executive Director.

Agreement Signed to Convert Loan Amounts

On 13 August 2014, the Company announced that it had

signed agreements with International Petroleum Limited

("IOP") regarding the conversion of US$13 million owed

by IOP to the Company into fully paid IOP ordinary

shares. Following the loan conversion, African

Petroleum Corporation holds 233,890,450 ordinary

shares in IOP (representing a holding of approximately

14%) and 5 million share options with an exercise

price of AU$0.06 per share.

IOP owns 4 blocks in Niger onshore covering over

70,000km2 with a modest work programme of 4 wells,

seismic and FTG. IOP is listed on the National Stock

Exchange of Australia and had a market capitalisation

of A$71 million prior to suspension of trading in 2013.

Director Share Purchases

During September 2014, four of the Company's Board of

Directors purchased on market (OAX) a total of 750,000

ordinary shares in the Company.

Outlook

The Company continues to build 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 African Petroleum Corporation's goal of

delivering optimum value and return to our stakeholders.

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 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.

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.