1

Investor PresentationFebruary, 2011

2

We’re Part of the Lundin GroupWe’re Part of the Lundin Group

Which has a long, successfulWhich has a long, successfulWhich has a long, successfulWhich has a long, successful3

Which has a long, successfulWhich has a long, successfulhistory in Africahistory in AfricaWhich has a long, successfulWhich has a long, successfulhistory in Africahistory in Africa

$2 billion invested in Africa toAfrica to date

The Last Undiscovered “Elephants”The Last Undiscovered “Elephants”

Poor contract terms except KurdistanHigh potential

Deep waterExpensiveBP disaster

Source – Casey Research Report 2010

Deep waterHighly competitiveHigh potential

5

Recent HighlightsRecent Highlights

•Closed Tullow farm-out (S. Omo, 10BB, 10A), 12A/13T expected to close Feb-2011

•Centric shareholders approved takeover – expected to close Feb-2011close Feb 2011

•Forced exercised warrants in Q4-2010, raising $CAD55.8MM

•Resource estimate currently being updated

•Completed seismic program in 10BB and Ogaden, 10A expected to complete Q1-2011

6

Why East Africa?Why East Africa?

•One of the last areas on earth where onshore billion barrel accumulations can still be found with good contract terms.

•Ability to assemble massive acreage position of almost 350,000 sq. km. (86MM acres, equivalent to 1400 North Sea bl k )blocks)

•Existence of four distinct petroleum systems, each of which is proven in our blocks and has multi-billion barrel accumulations on trend.

•New discoveries in Uganda has raised industry interest level and will bring much needed infrastructure to the region.region.

Surrounded on all sides by Surrounded on all sides by 7

billions of barrels of oilbillions of barrels of oil

AOI Assets

‐ Ethiopia

‐ Kenya

‐ Puntland (Somalia)

8

Tullow Deal ClosedTullow Deal Closed• Tullow is one of the most successful explorers

in last decade and found the analogous deposit in the Albert Graben of Uganda. Drilled 35 out of 36 successful wells.

• Tullow takes 50% and operatorship in 4 AOI bl k i K d i Ethi i Th illblocks in Kenya and one in Ethiopia. They will pay $10MM past costs and carry AOI for next $23.75MM of their share of costs.

• Tullow have a full operational team, particularly on the drilling side, that AOI would have to build. They also will have a top notch G&G y pteam who know rift basins better than anyone.

• Tullow operates the Uganda export pipeline consortium and we will now have a front row seat at these negotiations.

9

Centric Acquisition Closing Feb, 2011

• Block 10BA is last remaining prospective block in heart of East Africa rift trend

Hydrocarbon fieldsTertiary RiftCretaceousPermian-Triassicfault

• New potential rift trend in Mali

• Fully or partially carried by Tullow and H it

South Omo BlockHeritage

• Pure share deal, Centric shareholders to hold 15% of combined company

Block 10A

CENTRIC Block 10BA

Exploration analogue to Tertiary Rift hosted

Block 7

Block 13T

Block 9

2BBO Lake Albert Oil Field, Uganda

Centric/Heritage Oil25%/75%

CretaceousBlock 11

Block 10BB

Block 12A

Tullow Blocks2BBO Albert Oil Fields

Rift Basin

10

Africa Oil Promotes*Africa Oil Promotes*

Kenya Working Interest  Paying InterestMinimumWork Program

Block 10BB 40% 0% 600 km seismic and 1 well

l k k i i d llBlock 10BA 50% 20% 750 km seismic and 1 well

Block 10A 30% 0% 500 km seismic and 1 well

Blocks 12A/13T 50% 50% 1,000 km seismic 

Block 9 66.7% 66.7%  None 

Ethiopia

South Omo 30% 0% 500 km seismic and 1 well

Ogaden 55% 30%  500 km seismic

Adigala 50% 50% None

Somalia

Dharoor/Nuugal 45% 35% 1 Well on each block

Mali

Blocks 7/11 25% 0% 1 well + 1,000 km seismic

*Approximate carries.  Based on $ amount and thus subject to spending caps.*Subject to remaining sole‐funding obligations to Range on Nugaal

11

Partnership InterestsPartnership InterestsKenya

Block 10BBTullow (Operator) 50%Africa Oil 40% Lion Energy 10%  

Block 10A

Tullow (Operator) 50%Africa Oil 30% EAX (Black Marlin) 20%

Blocks 12A/13TTullow (Operator) 50%Africa Oil 50%

Block 9Africa Oil (Operator) 66.7%Lion Energy 33.3%

Block 10BATullow (Operator) 50%Africa Oil 50%

Ethiopia

South OmoTullow (Operator) 50% Africa Oil 30% White Nile 20%

AdigalaAfrica Oil (Operator) 50%New Age 50%

OgadenAfrica Oil (Operator) 55%New Age 15%EAX (Black Marlin) 30%

MaliH it (O t ) 75%

Blocks 7/11Heritage (Operator) 75%Africa Oil 25%

Somalia

Dh /N l

Africa Oil (Operator) 45%Range Resources 20%

Dharoor/NuugalRange Resources 20%Red Emperor 20%Lion Energy 15%

12

KenyaKenya

Gas discoveryAfrica Oil now operatingAfrica Oil now operating

AOI holds 6 blocks in Kenya*• 4 blocks on Tertiary Rift trend, 2 on Cretaceous Rift trend

• All blocks except Block 9 farmed out to Tullow

*Subject to Centric deal closing

13

Kenya Kenya –– Block 10BBBlock 10BB

Loperot oil discovery in 10BB with  many large follow up prospects

Area = 12,638 kmArea = 12,638 km22

NN--Kerio Kerio

13T

many large  follow up prospects

AOC holds a 40% carried interest

Analogous to Albert Graben of U d h 1 BBO di d /

Lake Lake TurkanaTurkana

Uganda where 1 BBO discovered w/ 2.5 BBO prospective resources

Ugandan discoveries have spurred plans for pipeline through Kenya

SS--Kerio Kerio

plans for pipeline through Kenya

Seismic program (615 km) completed Oct 28 2010Lokichar Lokichar

10BB

12ALeads with seeps on lake

2010 programRecordedLegacy seismic

Southern Lake Albert Block 10BB – Lake SeepsSurface Geochemical Anomalies

Outboard Nzizi / Mputa (Pelican prospect)

Southern Lake Albert Block 10BB Lake Seeps

Deep basin center vertical migration (episodic) w/smaller seepsp

Basin margins lateral migration w/massive seepage above 

’ haccum’s…onsh seeps mapped for decades

Oil Slicks in Southern Lake Albert nearOil Slicks in Southern Lake Albert near Kingfisher and Oil Slicks in Lake

Turkana near Block 10BBTar sample on Chorea Seismic Line

15Lead Chorea

Ch C l L diChorea ComplexMost Likely Prospective Resources = 400 MMBO

Loperot discovery

Kerio NorthKerio North

Kerio North

Kerio North ML Prospect psize – 150 MMBO

Block 10BA

• Multiple slicks interpreted from ASAR satellite data

• Onshore seep documented ~1984;Onshore seep documented 1984; “similar to Lake Albert seeps”

• Total gross P50 prospective resources totaling 2.2 billion barrels (unrisked)*

• P10 – 4.4 billion barrels

• P90 – 0.99 billion barrels

• Identified 27 leads from existing seismic• Identified 27 leads from existing seismic data

*Independent technical report NI 51-101 reserves study by Gustavson A i t bli h d J 2010Associates published January, 2010

18

Lake Turkana – Block 10BA 1984 Seismic

19

KenyaKenya--Block 10A Block 10A AOC holds a 30% 

carried working interest 

Cretaceous rift graben  LakeLake

Area = Area = 14,597 14,597 kmkm22

gextending into Kenya from Sudan

3 old wells with up to 

Lake Lake TurkanaTurkana

p2000 foot thick columns of residual oil

Late structuring has Block 10ABlock 10A glikely breached drilled traps

Currently  shooting y gprospect detail seismic and test line(s) over volcanics

Block 10BBBlock 10BB

Block 9Block 9

Plan to drill 2011 ________ proposed seismic [726+52 km]proposed seismic [726+52 km]________ optional regional [102 km]optional regional [102 km]____ ____ SIP reprocessedSIP reprocessed

________ proposed seismic [726+52 km]proposed seismic [726+52 km]________ optional regional [102 km]optional regional [102 km]____ ____ SIP reprocessedSIP reprocessed

20

Paipai Prospect-575 MMBO

Block 10A New Play Concepts Block 10A New Play Concepts

Turtle structure (?)

AOC Exploration Strategy:

Find & drill structural traps which have maintained

structural integrity through T ti dj t t

Paipai Prospect ML PR: 575 MMBO

Tertiary readjustments

21

Kenya – Blocks 12A / 13TKenya – Blocks 12A / 13T

AOC holds 50%  ground floor interest

Protection acreage along Tertiary rift trend south of 10BB

Highly underexplored with no seismic or wells drilled

Plan Full Tensor Gravity (FTG), geochem and seismic

Miocene Source Rock in OutcropGood to excellent, Type I; 3% TOC

National parks/game reserves

Digital Elevation Model

22

Kenya – Block 9Kenya – Block 9AOC 20% interestAssessing options

Bogal‐1 Summary (5,085m TD):‐ Cretaceous SS are gas‐bearing‐ 91 m net gas pay‐ Best estimate for total gas ~3 TCF (gross)

Challenges:‐ Commercial flow rates‐Monetizing dry gas

Kenya’s Need for GasKen a’s energKenya’s energy consumption growing by 8% annually 0.25

Kenya Primary Energy Consumption, 1980-2008

yCurrently, 68% of Kenya’s primary energy needs come from the

0.2

ion

BTU

)

needs come from the burning of firewoodPeak load power from 0.1

0.15

sum

ed (Q

uadr

ill

pnatural gas needed to supplement hydroelectricity and

0.05

0.1

Ener

gy C

on

hydroelectricity and geothermal power 0

Year

EthiopiaEthiopia

• AOI holds blocks in 3 different trends ‐ in Tertiary yRift (South Omo) Karoo Rift (Ogaden) and Jurassic rift (Adigala)(Adigala)

• Exploration activity in area increasing but remains 

i l d l dextensively under explored

• Proven petroleum systems

• Significant nearbySignificant nearby discoveries and shows

• Seismic acquisition l dcompleted

Area = Area = 29,465 29,465 kmkm22Ethiopia - South OmoEthiopia - South Omo

AOC holds 30% interest

P t ti lProtection acreage along Tertiary rift trend north of Lake Turkana

Hi hl d l dOmoOmo

National National ParkPark

MagoMagoNational National

ParkPark

Highly underexplored with no seismic or wells drilled

Pl F ll T G itPlan Full Tensor Gravity, geochem and seismic

Sudan

KenyaKenya

Lake Turkana

26

Ethiopia - AdigalaEthiopia - Adigala Area = 27,193 kmArea = 27,193 km22

AOC h ld 50% i20

AOC holds 50% interest 

Field work confirms source, seal and reservoir

12

13

14

15

16

17

18

19

20

Oil extracted from source rock matches oil extracted from outcropping dolomites

5

6

7

8

9

10

11

12

Program length = 523 kmProgram length = 523 km

Seismic acquired in 2009 is poor quality

Additi l t t i i li

0m

1

2

3

4

Jurassic Source RockTOCs: 2‐3.86%

Additional test seismic line  and other G&G work

No outstanding work it t

Ng Unconf w/ near surface volcanics

MK Ss obj

West East

commitments UJ SR

Near Top Karoo?

Adigala seismic line ADI‐06‐09.mig.8

27

Ethiopia - Ogaden BlocksEthiopia - Ogaden BlocksAcquiring seismic over existing leads.  Blocks 6 & 7             

complete, finishing Block 8 in December

Light oil recovered from Jurassic in both El Kuran wellsPlan to drill one well in 2012 depending on seismicPlan to drill one well in 2012 depending on seismic

Program length = 500 km shallow SR

Adigrat TWT Deep gas discovery?!

5km

Deep SR

28

Puntland

Oil IndicationsOil seeps and shows in wells

• Concessions located in Puntland, a

Oil Indications

,more stable and semi-autonomous region of Somalia

• Direct analog to Yemen discoveriesDirect analog to Yemen discoveries with numerous shows and seeps

• Currently attempting to procure rig t t d t bl tcontractor under acceptable terms

• Obtained one year contract extension to January, 2012y,

Puntland-Dharoor & NugaalPuntland-Dharoor & Nugaall d dFarmout completed to Red Emperor to 

take 20% for paying 30% of first wells

Remapping Dharoor prospects for final pp g p pprospect selection

Currently attempting to procure rig contractor under acceptable termscontractor under acceptable terms

29

30

Mali Blocks 7 and 11

• 25% in Blocks 7 and 11

• Farmed-out 75% interest to Heritage Oilg

• 18 mm acres in Central African rift system

• Oil shows in nearby water well

A l ift b i i l d th A d• Analogous rift basins include the Agademblock, Niger, reported 350 mm barrels in place

31

Community Development

CD j t t h

CD projects include:• School rehabilitationCD projects must have:

• Religious neutrality• Sustainability• Local content

• School rehabilitation• Bursary Fund• Farm tools• Birkahs (water storage)• Local content

• Potential for capacity building• High Impact relative to cost• Political neutrality

Birkahs (water storage)• Human health posts• Medicines for livestock• Support for hospitalsPolitical neutrality pp p• Solar lights/cookers

32

Cash PositionCash Position

• Assumes closing Tullow farmout and Lion Amending Agreement2 6 2 3

Cash Available: $88.2 MM Cash (end of 2010) g g

• Past Costs are subject to Tullow audit (post-closing matter)

• Additional CAD$9 7MM of warrant

7.3 2.6 2.3 )

Tullow/Lion past costs

Additional CAD$9.7MM of warrant proceeds potentially receivable (expiring May-2012)

76.1 Tullow estimated completion costs

Warrants proceedsproceeds receivable

33

Share CapitalShare Capital

• Includes:– Lion Amending Agreement

consideration: 2 5MM8 0 26 4

Fully Diluted: 209.2MM Issued & Outstanding (31-Dec-10)Li A di consideration: 2.5MM

shares– Assumed Conversion of

Lundin Loan @ FX: 1.00 $CAD0 90/ h

135.8

30.2

6.38.0 26.4 Lion Amending

AgreementCentric Acquisition ***

Options $CAD0.90/share• Warrants:

– 1.5MM have been force exercised

2.5

Options

Warrants

Lundin Convertible exercised– 6.5MM will remain

outstanding (CAD$1.50 exercise, expire May-2012)2012)

World class potential in fourWorld class potential in four

34

World class potential in four separate petroleum systemsWorld class potential in four separate petroleum systems

Summary of Unrisked and Undiscovered Oil Prospective Resources

Geographic Region License Gross Best Estimate (MMBbl)

AOC Working I t t (%)

Net Best Estimate (MMBbl)g p g (MMBbl) Interest (%) (MMBbl)

Puntland (Somalia) Nogal Block 3,102 45 1,396

Puntland (Somalia) Dharoor Block 1,451 45 653

Kenya Block 10BB 1,737 40 695

Kenya Block 9 1,028 66.7 686

Kenya Block 10A 250 30 75Kenya Block 10A 250 30 75

Kenya Block 10BA* 2200 50 1100

Ethiopia Block 2&6 7&8 964 55 530

The above summary table was prepared by the Company for the convenience of readers. Please refer to the Company’s press release dated January 7, 2010 for details of the prospective resources by prospect and lead, including the geologic chance of success.

There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources.

10,732 5,135

Net Prospective Resources are stated herein in terms of AOC’s net Working Interest (WI) in the properties and, due to the very immature nature of these Prospective Resources, have not been computed as net entitlement volumes under the PSA. In this regard these volumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSA.

*Independent technical report NI 51-101 reserves study by Gustavson Associates published January, 2010

35

Size of the Prize

ProspectiveResources Net Best Estimate 

Indicative Risk Factor

Risked Potential Prospective Resources 

Potential Value ($MM)

(MMbbl) (MMbbl)

20% 1,027 4,396

5 135 10% 514 2 200

• Recently completed East African sale transaction:

5,135 10% 514 2,200

1% 51 218

y p•Heritage sale of interest in Uganda Lake Albert (Blocks 1 & 3A) to Tullow•355 MMboe mean working interest contingent resource sold•$1.5 billion transaction value$4 23/boe

The above summary table was prepared by the Company for the convenience of readers. Please refer to the Company’s press release dated January 7, 2010 for details of the prospective resources by prospect and lead, including the geologic chance of success.

There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that the discovery will be commercially viable to produce any portion of the resources

•$4.23/boe

commercially viable to produce any portion of the resources.

Net Prospective Resources are stated herein in terms of AOC’s net Working Interest (WI) in the properties and, due to the very immature nature of these Prospective Resources, have not been computed as net entitlement volumes under the PSA. In this regard thesevolumes stated herein will exceed the volumes which will arise to AOC under the terms of the PSA. The net best estimate has beenadjusted to reflect changes to working interests due to recently announced or completed farmout transactions.

36

A history of value creationA history of value creation

Company 2002 Present Notes

Tanganyika $0.55 / share $31.50 / share Sold to Sinopec g y $ /$13.5 million MC

$ /$1.9 billion MC

p2008

Valkyries $0.45 / share$4 million MC

$16.00 / share$750 million MC

Sold to Lundin Petroleum 2006$4 million MC $750 million MC Petroleum 2006

Lundin Petroleum U $0.41 / shareU $101 million MC

U $10.94 / shareU $3.2 billion MC+ E t i ff

Active

+ Enquest spin off US $1.7 billion MC

BlackPearl $0.25 / share$

$8.50/ share$

Active

Market cap growth from $131.7 million to $6.6 billion

$2.1 million $2.4 billion

Shamaran $0.28 (2003)/ share$11.1 million

$1.14 / share$710 million

Active

Market cap growth from $131.7 million to $6.6 billion

Average return on investment 2,900%

37

Summary and Conclusions Summary and Conclusions

• Africa Oil now has the largest acreage position in East Africa on four highly prospective rift basin trends – one of the few places left on earth for billion barrel fields onshore with goodplaces left on earth for billion barrel fields onshore with good fiscal terms

• As a result of recent fund raising and Tullow deal, Africa Oil is now in a very strong financial position

• Tullow partnership will add technical, operational and development expertise as well as synergy with regional i li t j tpipeline export project

• Seismic programs well advanced on highest potential blocksSeismic programs well advanced on highest potential blocks with continuous drilling campaigns commencing in 2011

38

AOI has a strong management teamAOI has a strong management teamKeith Hill,  President and CEOMr. Hill has over 25 years experience in the oil industry including international new venture management and senior exploration positions at Occidental Petroleum and Shell Oil Company. His education includes a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University as well as an MBA from the University of St. Thomas in Houston.  Prior to his involvement with Africa Oil, Mr. Hill was President and CEO of Valkyries where he led the company through rapid growth and ultimately a highly successful $700 million takeover by Lundin Petroleum.  In addition, Mr. Hill was one of the founding directors of Tanganyika Oil which was recently the subject of a $2 billion takeover by Sinopec International Petroleum.

Ian Gibbs, CFOIan Gibbs is a Canadian Chartered Accountant and a graduate of the University of Calgary where he obtained a bachelor of commerce degree. Ian Gibbs has held a variety of prominent positions within the Lundin Group of Companies; most recently as CFO of Tanganyika Oil Company Ltd. where he played a pivotal role in the recent $2 billion acquisition by Sinopec International Petroleum . Prior to Tanganyika, Mr. Gibbs was CFO of Valkyries Petroleum Corp which was the subject of a $700 million takeover.

James Phillips, VP ExplorationBefore joining Africa Oil, Mr. Phillips was Vice President Exploration‐Africa and Middle East for Lundin Petroleum AB where he played a pivotal role in securing the  majority of Africa Oil’s  current portfolio.  Mr. Phillips is a graduate of the University of California, Berkeley and San Diego State University where he obtained BS and MS degrees, both in Geology. He has over 25 years of experience in the oil industry including senior positions with Shell Oil company and Occidental including heading up Oxy’s African exploration ventures.

Gary Guidry, DirectorMr. Guidry brings to the Board of Africa Oil Corp. an extensive background and proven track record in international petroleum development and project execution. A Petroleum Engineer by training, he is an Alberta registered Professional Engineer with expertise in diverse environments ranging from deep water West Africa and the Gulf of Mexico South American rainforests to the deserts of theis an Alberta‐registered Professional Engineer with expertise in diverse environments ranging from deep‐water West Africa and the Gulf of Mexico, South American rainforests to the deserts of the Middle East.  Most recently, Mr. Guidry was President of Tanganyika Oil Company Ltd. where he led the company from an early stage oil development project in Syria to a $2 billion takeover by Sinopec International Petroleum in late 2008.

Cameron Bailey, DirectorMr. Bailey is a Chartered Financial Analyst with a Bachelor of Commerce degree from the University of Calgary. He has worked in the energy investment business, specifically investment banking for the 

h f d f d h d h l bl ff f b f l d l d d d lf ldpast 19 years. He is the founder of, and has organized, the initial public offerings for a number of oil and gas exploration and production, and oilfield services companies.

John Craig, DirectorMr. Craig practices in the area of securities law with a focus on equity financings for both underwriters and issuers, with an emphasis on resource companies, TSX listings, dealings with TSX and OSC for listed public companies, takeover bids and issuer bids and going‐private transactions. Mr. Craig is also involved with international resources in negotiation and drafting of mining, oil and gas concession agreements, joint venture agreements, operating agreements and farm‐in agreements in a variety of countries.  

Bryan Benitz, DirectorBryan Benitz brings over 40 years of financial markets expertise and investment banking experience to the Company.  He graduated from Fettes College in Edinburgh, Scotland in 1951 and received his early investment banking training at Wisener & Company in Canada.

39

Cautionary StatementsCautionary Statements

• This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as legal and , j , gpolitical risk, civil unrest, general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties p gresulting from potential delays or changes in plans, the occurrence of unexpected events and management’s capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.

• Resource and reserve references on other companies have been sourced esou ce a d ese e e e e ces o ot e co pa es a e bee sou cedfrom websites and other public information and may not be accurate.