CAMAC Energy Inc. (NYSE Amex: CAK), a U.S.-based energy company engaged in the exploration, development and production of oil and gas, today announced that it has entered into a heads of agreement (the “Heads of Agreement”) with the Kenyan Ministry of Energy for the award of three exploration blocks: l1A L1B, and L16 (“the Blocks”). Block 11A is an onshore block covering 10,913 square kilometers in northwest Kenya near the Ugandan border. Block L1B is an onshore block covering 12,197 square kilometers in eastern Kenya on the Somali border. Block L16 covers 1,699 square kilometers onshore and 89 square kilometers offshore on Kenya’s southeast coast. CAMAC Energy will be the operator with 90% interest in the Blocks. The Government of Kenya will be carried at 10% through declaration of commerciality and may thereafter elect to participate up to 10%. The Heads of Agreement sets forth the negotiated major fiscal terms and work program for the Blocks, and the award is subject to negotiation and signing of formal Production Sharing Contracts (“the PSCs”) for the Blocks within the next 30 days and approval by the Minster of Energy and the Board of Directors of CAMAC Energy, as well as payment of requisite signature bonuses upon signing. Block 11A is in the Lotikipi rift basin adjacent to four blocks operated by Tullow Oil plc (LSE:TLW): Blocks 10A, 10BA, 10BB, and 13T. Tullow recently announced the spudding of the Ngamia-1 well on Block 10BB. The well is testing a prospect similar to oil prospects in Tullow’s Lake Albert Rift Basin, where over 1 billion barrels of contingent resources have been discovered. Block L1B is located in the Lamu Basin to the south of Blocks 3A and 3B, both operated by Vanoil Energy Limited (TSX.V:VEL). Block L16 is also in the Lamu Basin adjacent in the east to Block L8 and in the south to Block L9, operated by Apache Corporation (NYSE: APA) and Ophir Energy plc (LSE: PHR), respectively.