aoc financial statement 2nd qtr 2009 , page-5

http://www.africaoilcorp.com/i/pdf/2009-Q2.pdf

"Exploration Drilling

The Company has assigned a full time Drilling Manager to commence efforts on the procurement and
mobilization of a drill rig for the proposed Somalia exploration drilling campaign."

"Somalia
Under the PSAs for the Nogal and Dharoor Blocks, the Company is required to drill one exploration
well in each block in each exploration period. The first three-year exploration period expires in
January 2010 and the second optional three-year exploration period would be expected to expire in
January 2013.
Under the Joint Venture Agreement with Range Resources ltd. (Range), in exchange for the 80%
working interest in each block, the Company is obligated to solely fund $22.8 million of joint venture
costs on each of the blocks ($45.5 million in total for both blocks) during the exploration period. In
the event that a commercial discovery is declared on a block prior to AOC spending $22.8 million, AOC
shall be deemed to have earned its interest in the block and the Company and Range will be
responsible for future expenditures on the block in proportion to their respective working interests. In
the event that AOC does not fund the required $22.8 million during the two three-year exploration
periods, the Company’s interest in the block would be forfeited. An additional $3.5 million will be
payable to Range upon commencement of commercial production.
During the fourth quarter of 2008, the Company fulfilled its sole funding obligation related to the Dharoor
Valley Block. As a result, Range is paying its 20% participating interest share of ongoing exploration
costs related to this Block. In the Nogal Valley Block, the Company has spent approximately $4.1 million
towards sole funding obligation as of June 30, 2009."