Africa Oil Corp. has been informed of Kenyan court proceedings, which were brought by Interstate Petroleum Ltd. (IPL) against the Permanent Secretary, Ministry for Energy. IPL is seeking a judicial review of the administrative process that led to the issuance of exploration permits in respect of, amongst others, Blocks 10BB, 12A and 13T, which resulted in the Company being a named party to the proceedings. A preliminary order, granting IPL leave to seek orders against the Permanent Secretary, has been granted, and a hearing date has been established for October 27, 2010. The Company has been advised by its legal counsel in Kenya that the courts in Kenya will generally grant this sort of preliminary order in applications of this nature, as there is no requirement to establish the merit of the claim on the initial application.

The Kenyan Ministry of Energy has advised the Company that it may carry on its work program and that its production sharing contracts are in good standing.

Keith Hill, the Company's President, stated, "Africa Oil believes there is no basis for the claims that IPL is making against the Permanent Secretary. We understand that both the Permanent Secretary and the Ministry of Energy share our view in that regard. Africa Oil will work closely with the Permanent Secretary, Ministry of Energy, Kenyan Attorney General's office and other interested parties to ensure that our interests in the Blocks are safeguarded."

Tags: Africa Oil Corp.