Africa Oil Provides Positive Kenyan Operations Update; Shares Up Nearly 4%


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Africa Oil Corp. (AOI.V) today provided the following update in respect of its ongoing operations in Kenya.

Four flow tests have been carried out on the Twiga South-1 well in January and early February and a fifth test is ongoing. A cumulative rate of 2,351 bopd was recorded from two separate sands in the Auwerwer formation. One test flowed at a maximum natural flow rate of 1,860 bopd of 37°API oil and the other flowed at a rate of 491 bopd using a Progressive Cavity Pump ( PCP ). The final flow test in the Auwerwer formation is ongoing using a PCP and AOI anticipates that the zone will flow over 500 bopd taking the total combined rate to over 2,850 bopd for the well.

The reservoir quality of the Auwerwer sands appears to be significantly better than predicted.

The Company also reports that the Paipai-1 well has reached a total depth of 4255 metres, encountering igneous rocks at the base that appear to be basement. Light hydrocarbon shows were encountered in sands in the Lower Cretaceous interval and the well is currently being cased for additional fluid sampling by MDT.

Shares are up 3.9% to $8.25 near midday. Volume traded is 599,578.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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