PetroNor E&P ASA

Quarterly Report • Feb 27, 2015

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 31 DECEMBER 2014

UNAUDITED FINANCIAL REPORT FOR THE QUARTER ENDED 31 DECEMBER 2014

27 February 2015 - Please find enclosed African Petroleum Corporation

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

financial report for the quarter ended 31 December 2014.

Highlights

Corporate

- On 23 December 2014, the Company announced the signing of 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

- On 28 November 2014 The Gambian licences A1 and A4 were reinstated on a

100% basis to African Petroleum through two wholly owned subsidiaries. The

Gambian acreage is on trend with discoveries made during 2014 in Senegal

and has many analogue prospects

- In November 2014 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 resources 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 Energy 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. In addition, as

announced on 12 February 2015, the Company raised approximately US$12.5

million in a private placement.

- 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

Operations

- 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. Further updates on our Gambian, Sierra

Leone and Senegalese Licences will be delivered 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

- 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 an18 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

- African Petroleum continues to work with Sierra Leone and Liberian

governments following the outbreak of Ebola in 2014

Company Background

African Petroleum CorporaSon Limited ("African Petroleum" or the "Company")

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 by Total in Côte d'Ivoire and 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 a significant acreage holder offshore West Africa, rivalling

industry majors such as: Anadarko Petroleum, Chevron CorporaSon, 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.

CEO Statement

"African Petroleum has made significant progress in all areas of the business

during the fourth quarter 2014.

We are very pleased to have reached an agreement with The Gambian

authorities in the Q4 2014 and had the A1 and A4 licences reinstated. We look

forward to drilling there within the next 18 months, particularly in light of the

recent commercial discovery by Cairn Energy and partners in the adjacent

Senegal acreage.

In December 2014, the Company achieved a significant step towards our goal

of securing a farm-­out deal through the signing of a term sheet for our Liberia

Licence LB-­08. We are in ongoing 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 coming months.

Significantly, subsequent to quarter end, despite the challenging industry

backdrop caused by the declining oil price, African Petroleum announced a

private placement in February 2015, raising gross funds of approximately

US$12.5m. This further highlights the markets confidence in our highly

prospective assets and the significant potential for value creation."

Operational & Corporate Update

Private Placement

Subsequent to year end on 10 February 2015, African Petroleum announced a

Private Placement raising NOK 95,106,200 (approximately US$12.5 million) in

gross proceeds through the allocation of 271,732,000 shares at a subscription

price of NOK 0.35 per share. In addition, each applicant in the Private

Placement is entitled to be allocated one non­-transferable NOK 0.75 opSon for

every two shares allocated in the placement, corresponding to a total allocation

of up to 135,866,000 options.

The net proceeds of the placing will be used to primarily strengthen the

Company's balance sheet and liquidity position and to fund our ongoing

exploration programme, including seismic costs and licence fees. The

fundraising further bolsters the Company's position and provides the addition

flexibility and optionality as African Petroleum continues advanced discussions

with potential farm­-out partners.

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 companies to farm-in to our other

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.

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 discovery well 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.

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 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 of Senegal

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 Licences and Liberia Licences (the

"ERCE Audit").

The ERCE Audit of prospective resources includes the addiSon 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 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%

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 (an increase of

58%).

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 of 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 forward as 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

experienced team, utilising the latest technology and taking advantage of the

low cost environment.

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 - Buchanan

Ben Romney/Helen Chan

Tel: +44 207 466 5000

For Norwegian media - First House

Geir Arne Drangeid

Tel: +47 913 10 458

Geir Gjervan

Tel: +47 908 79 108

This information is subject to disclosure requirements pursuant to section 5-

12 of the Norwegian Securities Trading Act.