Drilling operations on the first well is expected to commence during the fourth quarter of this year.
According to the company, drilling locations have been selected over two prospects targeting total gross best estimate prospective resources of 675 million barrels of oil.
The first prospect, Shabeel-1, is targeting prospective resources of in excess of 300 million barrels of oil.
Africa Oil will hold its stake in the Puntland projects through its shareholding in Horn Petroleum, which recently completed a $41m capital raising.
