PetroNor E&P ASA

Regulatory Filings • Oct 21, 2015

CORPORATE UPDATE

CORPORATE UPDATE

African Petroleum Corporation Limited ("African

Petroleum" or the "Company"), an independent oil and

gas exploration company operating ten licences in five

countries offshore West Africa, provides the following

corporate update.

Farm-Out Status

African Petroleum continues to seek strategic partners

on its ten licences in Côte d'Ivoire, Liberia,

Senegal, The Gambia and Sierra Leone in order to share

risk and the potential reward of the Company's

exploration programme, and to fund its high impact

exploration drilling campaign in 2016 and beyond.

The Company's immediate focus is to conclude the

transaction in Côte d'Ivoire (refer below), and to

farm out the Company's assets in The Gambia and

Senegal as ongoing discussions mature with key

potential partners. The quality of the Company's

acreage, coupled with the high level of equity

interest held in all of the licences, provides

management with confidence that agreements will be

concluded in due course.

(i) Côte d'Ivoire

As announced on 29 June 2015, African Petroleum has

signed a binding joint bidding agreement with a London

listed oil and gas company to provide a framework for

the incoming third party to secure a 45% operated

interest in a Production Sharing Contract (on terms to

be agreed) covering the Company's Block CI-513 licence

area in Côte d'Ivoire. It is intended that African

Petroleum will hold a non-operated interest of 45%,

with the remaining 10% carried interest held by

Petroci, the National Oil Company of Côte d'Ivoire.

Completion of the transaction is subject to

negotiation and entry into commercial agreements and

several conditions precedent including, but not

limited to, the agreement and approval of the

Government of Côte d'Ivoire.

African Petroleum and the incoming party are working

together towards completion of the transaction as soon

as possible, and the Company expects to make further

announcements, including further details of commercial

terms, in due course as progress is made.

Meanwhile, third party activity continues in the

region with the Vitol led group due to commence

exploration drilling during 4Q 2015 in their licence

CI-508, which is adjacent to the Company's CI-509 and

CI-513 licences.

(ii) The Gambia & Senegal

The Company is in advanced farm-out discussions with

several interested parties across the Company's Gambia

and Senegal assets. This part of the Atlantic Margin

has become highly active with the recent exploration

success of third party operators, namely Cairn Energy

in Senegal and Kosmos in Mauritania. A significant

level of activity in the region is ongoing as Cairn

and its partners commence a multi-well exploration and

appraisal programme to be drilled across their

Senegalese acreage. In addition, Kosmos, currently

drilling in Mauritania, has announced plans to move

south into Northern Senegal to follow-up their

significant Tortue gas discovery with exploration and

appraisal drilling.

African Petroleum's data room schedule remains active

with a high calibre of industry companies continuing

to view the data. A number of these parties have

confirmed their interest in pursuing a transaction and

have initiated detailed due diligence. The Company

seeks to attract binding offers as soon as possible.

Further announcements on progress will be made in due

course.

NSX De-Listing

On 22 September 2015, the Company announced that it

had elected to voluntarily de-list from the National

Stock of Exchange of Australia ("NSX"). The decision

to delist from the NSX was principally as a result of

limited trading liquidity on the exchange compared

with the Oslo Axess exchange, where African Petroleum

has had its primary listing since May 2014.

The decision was also made as part of African

Petroleum's on-going focus on capital discipline in

reviewing all costs across the business. The Company

continues to act prudently in light of current

challenging market conditions and remains on target to

reduce general and administrative expenses

significantly by year end.

Outlook

Whilst it is frustrating not to have concluded a

transaction, the quality of the Company's assets is

such that the level of interest from potential

partners remains high. Based on the positive and

ongoing dialogue with numerous potential partners,

African Petroleum is confident that despite the

industry-wide challenges created as a result a low oil

price environment, the attractiveness of the Company's

assets should allow for a successful conclusion to

ongoing farm-out discussions. It is hoped that the

Company will be in a position to announce further

progress on these discussions by the end of 2015.

Jens Pace, African Petroleum's CEO, comments:

"The quality of our assets and the level of third

party activity underway in adjacent acreage, has

translated into a consistently high level of industry

interest in our acreage and accordingly we remain

confident of completing a farm-out transaction despite

the difficult market conditions. We look forward to

updating the market on our progress in due course."

******

For further information, please contact:

Jens Pace, Chief Executive Officer

Stephen West, Finance Director

Tel: +44 20 3761 6900

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

About African Petroleum

African Petroleum is an independent oil and gas

exploration company operating ten licences in five

countries offshore West Africa. The Company's assets

are located in proven hydrocarbon basins in the West

African Transform Margin, and the Atlantic Margin,

where several discoveries have been made in recent

years. With a combined net acreage position of

30,378km2 through its licences in Côte d'Ivoire,

Liberia, Senegal, Sierra Leone and The Gambia, the

Company has matured its portfolio through the

acquisition of more than 18,500km2 of 3D seismic data

and successfully drilling three deep-water wells, one

of which was the first hydrocarbons discovery in the

offshore Liberian - Sierra Leone Basin.

For more information about African Petroleum, please

see www.africanpetroleum.com.au