Africa Oil gets exploration warning in Ethiopia

Stockhouse
Tuesday, February 19, 2013

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Canadian oil company told not to explore in the country’s east, until rebels make peace with the government. (CP)

Ethiopian rebels are warning a Canadian oil company against oil exploration in the country's east.

The Ogaden National Liberation Front, or ONLF, said Monday the region is unsafe for the Africa Oil Corp. (TSX: V.AOI, Stock Forum) and said it should halt operations until the rebels make peace with the government.

The ONLF is blamed for the 2007 attack on a Chinese-run oil field in the region in which scores died.

The Ethiopian government spokesman downplayed the statement, saying the region is peaceful and that the rebels don't pose a real threat.

Africa Oil Corp. says it has three projects in the country including in the Ogaden Basin where ONLF has been fighting the government. The rebels want to create an independent state in the Ogaden region, which is inhabited by mostly ethnic Somalis.

According to its website, Africa Oil Corp. is a Vancouver-based oil and gas company with assets in Kenya, Ethiopia, Mali and Somalia.

Trading last week at $7.97, Africa Oil has a market cap of $1.84 billion, based on 230.3 million shares outstanding. The 52-week range is $11.35 and $1.81.

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