Africa Hydrocarbons Inc.
TSX VENTURE : NFK

Africa Hydrocarbons Inc.

October 09, 2013 09:00 ET

Africa Hydrocarbons Completes Interpretation of Well Data and Provides an Operational Update on the BHN-1 Well in Tunisia

CALGARY, ALBERTA--(Marketwired - Oct. 9, 2013) - Africa Hydrocarbons Inc. (TSX VENTURE:NFK) ("AHI" or the "Company") today issued the following operational update regarding its BHN-1 exploration well on the Bouhajla Permit in northeastern Tunisia. As previously announced, the BHN-1 well penetrated 245 metres of chalky limestones of the targeted Abiod formation within the Bouhajla North prospect. During drilling, elevated levels of C1-C4 (methane-butane) were noted in the mud log with indications of both open and healed fractures noted in the drill cuttings. Fluid losses during drilling of between 0.8 and 3 cubic metres per hour were encountered throughout the Abiod. Hole stability issues below the intermediate casing string dictated a decision to case the wellbore rather than risk losing the hole, and then follow up with cased-hole neutron/sonic/gamma logs for initial evaluation purposes.

Further log evaluation was conducted on September 25, 2013 using a pulse-neutron logging tool, previously unavailable in country, to determine pore saturations within the Abiod. The results of the pulse-neutron log are indicative of elevated hydrocarbon saturations throughout the Abiod reservoir section with no indication of having intersected a water contact. The pulse-neutron log interpretation was consistent with the other data and observations related to the wellbore.

Typically, Abiod reservoirs rely on naturally-occurring fractures for the production of hydrocarbons. The non-fractured Abiod section in BHN-1 has characteristically low permeability, however several zones of enhanced permeability due to apparent natural fractures and faulting have been interpreted from the logs and confirm expectations based on 3D seismic interpretation of the Bouhajla North structure. Two six meter intervals over interpreted fracture zones near the bottom of the logged Abiod reservoir section have been identified for possible flow and testing analysis. The BHN-1 completion protocol will be similar to that successfully employed by the operator of the Sidi el Kilani field twenty-five kilometres to the east of BHN-1. After perforating, an acid wash of the perforations will be carried out followed by an acid squeeze into the formation.

Cleaning and treating of the drilling fluids/solids and removal from the waste pit at BHN-1 is underway and is expected to take approximately three weeks to complete before commencement of further operations.

The BHN-1 well was spud on June 8, 2013 and is the first exploration well on the Bouhajla Permit. It is being drilled to evaluate a Cretaceous Abiod oil target on the Bouhajla North prospect.

About the Company

AHI is a Canadian based international oil and natural gas company involved in the acquisition, exploration and development of energy assets, with an emphasis on Africa. The key asset of the Company is its 47.5% owned Bouhajla Block, located onshore in Tunisia within the productive Pelagian Basin.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.

ON BEHALF OF THE BOARD OF AFRICA HYDROCARBONS INC.

John Nelson, CEO

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "schedule", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the Company's future operations. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions concerning equipment and crew availability and joint venture partner financial capability. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because the Company can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the Company's actual results and experience to differ materially from the anticipated results or expectations expressed. These risks and uncertainties include, but are not limited to, reservoir performance, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, and political and economic conditions. Additional information on these and other factors is available in continuous disclosure materials filed by the Company with Canadian securities regulators. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Contact Information

  • Africa Hydrocarbons Inc.
    John Nelson
    CEO
    (403) 265-8011

    Africa Hydrocarbons Inc.
    200, 521-3rd Ave SW
    Calgary, Alberta T2P 3T3
    www.africahydrocarbons.com