Africa Oil Corp.: Corporate Update

AOI-V... h,mmm current value of 76 cents a share compared to present stock price of $1.45, Relative Value on scale 0 to 2.00 best is 0.54, Relative Safety on scale of 0 to 2.00 best is 0.83, and P/E Ratio is -0.25 which says it is considered to be overvalued with 168 million shares.

Oct.13/11 it traded over 10,328,656 shares compared to Oct.12/11 which traded 277,456 shares.

WHY??

Might be an interesting stock here!

With Assets … $177,638,670

Liabilities … $8,584,954

Some news:

VANCOUVER, BRITISH COLUMBIA-- (Marketwise - Sept. 23, 2011) - Africa Oil Corp. (TSX VENTURE:AOI)(OMX:AOI) ("Africa Oil" or "the Company") announced on September 20, 2011 that it received 27,777,778 post-consolidation common shares of Horn Petroleum Corporation ("Horn") (formerly capital pool company Denovo Capital Corp.) in connection with a share exchange agreement whereby Horn acquired all of the issued and outstanding shares of Canmex Holdings (Bermuda) I Ltd., formerly a wholly owned subsidiary of Africa Oil. The Company also acquired 11,111,111 post-consolidation common shares of Horn upon the conversion of 11,111,111 previously issued Subscription Receipts ("Subscription Receipts"). The Subscription Receipts were issued in a private placement at a price of CAD$0.90 per Subscription Receipt. Each Subscription Receipt was converted into one post-consolidation common share and one post-consolidation share purchase warrant of Horn.

Africa Oil now owns and has control over a total of 38,888,889 common shares or approximately 51.4% of Horn's current issued and outstanding share capital.

Africa Oil relied upon the exemption provided for in Section 2.42 of National Instrument 45-106 in connection with the issuance of the 11,111,111 common shares and Section 2.13 of National Instrument 45-106 in connection with the issuance of the 27,777,778 common shares.

Africa Oil acquired the securities in Horn for investment purposes only and may, in the ordinary course of their business, acquire additional securities of Horn depending on market and other conditions.

Africa Oil's Certified Advisor on First North is E. Öhman J: or Fondkommission AB.

Highlights and accomplishments during the second quarter of 2011 included:

• Africa Oil ended the quarter in a strong financial position with cash of $109.1 million and working capital of $96.7 million as compared to cash of $76.1 million and working capital of $70.6 million at December 31, 2010. The Company's liquidity and capital resource position improved since year end primarily as the result of payments received upon the completion of farm out transactions and the acquisition of Lion Energy.
  
  
  
• Africa Oil has more than sufficient funds to meet its currently planned work program. During the six months ended June 30, 2011, the Company expended $11.0 million of the 2011 Board of Directors approved $43 million in capital expenditures.
  
  
  
• Effective June 20, 2011, the Company completed the acquisition of all of the issued and outstanding common shares of Lion Energy Corp. ("Lion"), a publicly traded oil and gas company listed on the TSX Venture Exchange. Pursuant to the agreement with Lion, AOC acquired, by way of a plan of arrangement, all of the issued and outstanding shares of Lion in consideration for 14,962,447 AOC shares, net of 2,500,000 AOC shares Lion owned at the date of acquisition. The Company also issued 287,250 stock options which expire between 30 and 90 days from the effective date of the transaction and 2,289,000 share purchase warrants that expired unexercised on June 29, 2011. The value of consideration issued, net of AOC shares acquired, and was valued at $21.7 million. Lion is a joint venture partner of AOC in Kenya and Puntland (Somalia), and held the following working interests; 33.3% in Block 9 (Kenya), 10% in Block 10BB (Kenya), and 15% in each of Dharoor Valley and Nugaal Valley (Puntland). In addition to the above properties, Lion had net working capital of $20.1 million at closing, excluding the value of the AOC shares held by Lion.

Highlights and accomplishments during the second quarter of 2011 included:

• Africa Oil ended the quarter in a strong financial position with cash of $109.1 million and working capital of $96.7 million as compared to cash of $76.1 million and working capital of $70.6 million at December 31, 2010. The Company's liquidity and capital resource position improved since year end primarily as the result of payments received upon the completion of farm out transactions and the acquisition of Lion Energy.
  
  
  
• Africa Oil has more than sufficient funds to meet its currently planned work program. During the six months ended June 30, 2011, the Company expended $11.0 million of the 2011 Board of Directors approved $43 million in capital expenditures.
  
  
  
• Effective June 20, 2011, the Company completed the acquisition of all of the issued and outstanding common shares of Lion Energy Corp. ("Lion"), a publicly traded oil and gas company listed on the TSX Venture Exchange. Pursuant to the agreement with Lion, AOC acquired, by way of a plan of arrangement, all of the issued and outstanding shares of Lion in consideration for 14,962,447 AOC shares, net of 2,500,000 AOC shares Lion owned at the date of acquisition. The Company also issued 287,250 stock options which expire between 30 and 90 days from the effective date of the transaction and 2,289,000 share purchase warrants that expired unexercised on June 29, 2011. The value of consideration issued, net of AOC shares acquired, and was valued at $21.7 million. Lion is a joint venture partner of AOC in Kenya and Puntland (Somalia), and held the following working interests; 33.3% in Block 9 (Kenya), 10% in Block 10BB (Kenya), and 15% in each of Dharoor Valley and Nugaal Valley (Puntland). In addition to the above properties, Lion had net working capital of $20.1 million at closing, excluding the value of the AOC shares held by Lion.