Marathon Oil Corporation has entered into a farmout agreement with Africa Oil Corp. to acquire a position in two onshore exploration blocks amounting to more than 11 million gross acres in northwest Kenya.

The transaction includes a 50 percent working interest (WI) in Block 9 and a 15 percent WI in Block 12A. The companies expect to close the transaction, subject to completion of the necessary Kenyan government approvals, in the third quarter of 2012, with an effective date of June 30, 2012.

"With this transaction Marathon Oil gains entry into an emerging onshore oil play in Kenya that offers potential across a vast acreage position and fits with our liquids-rich strategic focus," said Annell R. Bay, Marathon Oil's vice president of Global Exploration.

Tags: Africa Oil Corp., Marathon Oil Corporation