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DISCLAIMER
The information contained in this document has been prepared by Madagascar Oil Limited (the “Company”). This document is being made available for information purposes
only and does not constitute an offer or invitation for the sale or purchase of securities or any of the assets described in it nor shall they nor any part of them form the basis of or
be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or otherwise engage in any investment activity (including within
the meaning specified in section 21 of the Financial Services and Markets Act 2000).
The information in this document does not purport to be comprehensive and has not been independently verified. While this information has been prepared in good faith, no
representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its directors, officers,
employees, agents or advisers as to, or in relation to, the accuracy or completeness of this document, and any such liability is expressly disclaimed. In particular, but without
prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or
prospects contained in this document. Such forward-looking statements, estimates and forecasts reflect various assumptions made by the management of the Company and
their current beliefs, which may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such
forward-looking statements, estimates and forecasts including: changes in general economic and market conditions, changes in the regulatory environment, business and
operational risks and other risk factors. Past performance is not a guide to future performance.
The document is not a prospectus nor has it been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the
purposes of the Prospectus Directive (Directive 2003/71/EC). This document has not been approved by an authorised person for the purposes of section 21 of the
Financial Services and Markets Act 2000.
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with access to any additional information, or to update this document or any additional information, or to correct any inaccuracies in it or any omissions from it which may
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Recipients of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This document does not constitute
an offer to sell or an invitation to purchase securities in any jurisdiction.
Disclaimer
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Madagascar’s leading and longest
operating oil and gas company
Operating four onshore blocks (100%)
and non-op (40%) with super major, Total
First company advancing to the upstream
oil and gas development phase
Pending 25-year development license
approval for Block 3104 (Tsimiroro)
Controls greater than 1.7 billion
barrels of contingent resource*
G r o u p S u m m a r y R e g i o n a n d A s s e t L o c a t i o n
Madagascar Oil is developing a promising portfolio of
onshore blocks in a region of growing prospectivity
* Based on Company estimates
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Spent over $300 million in past 10
years
Drilled 138 appraisal and pilot
production/injection wells in Block 3104
Designed, constructed and operates
the Tsimiroro steam flood production
facility
Malagasy nationals comprise approx.
85% of the Group’s workforce
Safety & environmentally focused
G r o u p S u m m a r y R e g i o n a n d A s s e t L o c a t i o n
Madagascar Oil has successfully undertaken drilling,
construction and production operations in country
6
Madagascar Oil has an excellent portfolio of assets
with strong follow-on development potential
Name Block Area, Sq. Km Notes
Tsimiroro 3104 ~6,700 • Thermal operations
• Deeper pay potential
Manambolo 3105 ~4,000 • Exploration potential
Morondava 3106 ~6,800 • Exploration potential
Manandaza 3107 ~6,600 • Exploration potential
Bemolanga 3102 ~5,500
• Bitumen
• Total (Operator) has
60% stake
Onshore blocks in Madagascar
Past well and seismic dataset in all exploration areas
No new technology required for the developments
Reservoir depth of ~200 m – Tsimiroro
Note: As announced by the Company on 15 December 2014, Madagascar Oil S.A. has formally requested a two year extension of the exploration
periods for Blocks 3105, 3106 and 3107 from the Madagascar authorities. This formal request was made ahead of the scheduled end date of the
current exploration periods of 14 December 2014 and the Company is hopeful of receiving these extensions in the near future.
7
President Hery Rajaonarimampianina was elected through
democratic elections in 2013 – investiture in January 2014
The new President and government are receiving growing
support including recognition by the United Nations and…
…several countries including United States, Russia &
South Africa …plus the European Union
President Rajaonarimampianina inaugurated Madagascar
Oil’s Tsimiroro crude oil blending facility in June 2014 and
said:
“The success of this project is our sincere wish so
that the hopes of the whole people to see his
offspring enjoying a better future become a reality.”
N e w D e m o c r a t i c G o v e r n m e n t
A new democratic Government committed to
development is being supportive of Madagascar Oil
8
Madagascar Oil is working towards three key goals
1 Convert resource to reserves
2 Deliver profitable development
3 Grow shareholder value significantly
9
Five themes pave the path to sustainable value
Supported by an engaged government
Upside potential in follow-on exploration
Proven, talented management team
Large, high-longevity, early-stage resource
Proven and mature thermal technology
10
A talented executive team able to create value by leveraging
proven technical, business and financial expertise
Robert Estill, CEO
• Over 30 years of leadership & executive management
experience in oil & gas exploration, production &
development
• VP of Strategic Planning & Portfolio management and
President of Marathon Oil UK whilst at Marathon
• Area Manager of Duri steam flood in Indonesia for 4
years – world’s largest steam flood operation and
production peaked at 300,000 bopd during his leadership
• Led thermal operations as California BU manager at
Kern River
Note: Michael Duginski, former COO Berry Petroleum, added to Board in January 2015 to further strengthen Company
thermal experience.
Stewart Ahmed, COO & General Manager
• 30 years as a Petroleum Engineer and General Manager
with considerable international experience.
• 12 years with Chevron production operations in the
North Sea and Gulf of Mexico including the Alba Heavy
Oil development.
• Former Senior Petroleum Engineering Consultant
including development projects in Ireland, Pakistan, Iraq,
Norway and Sudan
• 11 years in Yemen and Syria including managing the
exploration and subsequent developments of the
Sharyoof and Bayoot fields with Dove Energy
Gordon Stein, CFO
• Chartered Accountant with over 25 years of experience
in upstream oil & gas operations and developments
• Previously CFO of Cadogan Petroleum, Vanguard
Energy, Regal Petroleum & Acorn Oil & Gas
• Worked on oil and gas developments in the UK, Ukraine,
Tunisia, Venezuela, Algeria and Turkmenistan
• Has raised nearly US$ 1.5bn in funds to support oil and
gas operations since 2001
Dr. Emma Ralijohn, Deputy General Manager
• A former finance adviser to the President of Madagascar.
She was also a director of the Madagascar Central
Bank.
• Additionally, Dr. Ralijohn directed the US$110 million US-
backed development fund for Madagascar.
• Joined Madagascar Oil in 2008 and has managed
Government interfaces, Public Relations and CSR co-
ordination during the Tsimiroro thermal pilots and
Development Plan submissions
• Represents Madagascar Oil on Extractive Industries
Transparency Initiative (EITI)
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* E s t . C u m . P r o d u c t i o n
B i l l i o n b b l
* * C o n t i n g e n t R e s o u r c e ,
B i l l i o n b b l
Tsimiroro is a heavy oil reservoir capable of being in
the league of the world’s giant oilfields
NetherlandSewell (2011)
Madagascar Oil(2014)
2.21 2.36
Kern River,California
Duri, Indonesia
P50 1.70
P10 1.10
P90 2.46
Notes:
• (*) Kern River and Duri estimates include cumulative production to date based on publically available data.
• (**) Madagascar Oil Tsimiroro Contingent Resource figures are as submitted in the 2014 Block 3104 Development Plan in October 2014.
Low 1.33
Best 1.80
High 2.45
Source: ADI Analytics LLC, Houston, Feb. 2015
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Tsimiroro is a potential giant with enough contingent
resource to position it as a giant oilfield
Resource Potential by Production Mechanism
(Million Barrels of Oil Equivalent)
680 1,700
Cyclic SteamStimulation
Steam Flooding Additionalresource potential
Total contingentresource
170 - 425
600 - 1,020 Recovery of
10-25% OOIP (*)
Recovery of
40-60% OOIP
Source: ADI Analytics LLC, Houston, Feb. 2015
Note: (*) OOIP – Original Oil in Place
13
Tsimiroro full field total costs/bbl can compete well
with most other onshore resources
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
0 10 20 30 40 50 60 70 80 90 100
Crude Oil Supply Curve
Illustrative as of January 2015 Oil Price, $/bbl
Onshore Middle East
Offshore Shelf
Heavy Oil
Onshore Russia Onshore Other
Deep- water
Ultra-deepwater
Onshore Light Tight Oil
Oil Sands
Arctic
Million Barrels of Oil Per Day Source: ADI Analytics LLC, Houston, Feb. 2015
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The Tsimiroro Steam Flood Pilot began in April 2013 -performance comparable with other successful thermal projects
Steam
generation
Steam
distribution
Separation
Oil
storage
Oil
Production
Conceived after CSS “Huff and
Puff” success in 2008
Designed to test thermal recovery
process used in California and
Indonesia
Steam flood pilot drilled 28 Wells in
2012 including 9 injection, 16
production, 3 observation, and
additional water sourcing and
disposal wells
Start-up of all 25 production /
injection wells under CSS
Average well production rates of
20 BOPD achieved
Produced over 170,000 Barrels Oil
to end February 2015
Cumulative Steam Oil Ratio of 4-6
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The Tsimiroro steam flood pilot is generating
extensive data to support broader deployment
Steam flood pilot used a 5-spot pattern
with 16 production and 9 injection wells
A log cross section shows good uniform reservoir quality and oil
column and reservoir continuity across the steam flood pilot area
Well wireline logs show a 70-80 m thick
Amboloando sandstone at 110-120 m depth
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Also, the Tsimiroro steam flood pilot is yielding the
appropriate steam-oil production response
0.00
5.00
10.00
15.00
20.00
25.00
0
50
100
150
200
250
300
350
400
450
Stea
m O
il Ra
tio (B
arre
l/Bar
rel)
Mon
thly
Ave
rage
Oil
Prod
uctio
n Ra
te (B
OPD)
Tsimiroro Steam Flood Pilot Gross Oil Rate and Steam Oil Ratio History
Oil Production Rate
Steam Oil Ratio - Cumulative
ISF-5 Back-Flow Peak
Remedial Wellwork Programme
CSS Catch-Up Peak
2014 Ave 317 BOPD
0
500
1,000
1,500
2,000
2,500
Mon
thly
Aver
age
Stea
m In
jectio
n Ra
te(BW
EPD)
Tsimiroro Steam Flood Pilot Steam Injection Rate History
Shut-Ins for DrillingObservation wells
Shut-Ins for Remedial Wellwork Programme
Wellwork Programme
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The Block 3104 Tsimiroro License area also holds
quality additional hydrocarbon resource potential
PROSPECTIVESTRUCTURES
3 GRAVITY ANOMALIES WITHIN
THE GRABEN FEATURE
Deep South
Tsimiroro Main Field
Tsimiroro South Maroaboaly
PINCHOUTS
FAULT
CLOSURE
Basement
Oil is also encountered above and below the Main Field
Amboloando heavy oil reservoir
The Tsimiroro South structure has oil in the Amboloando
and deeper shows including light oil
The Tsimiroro Deep South structure is undrilled with
potential light oil prospectivity in the Sakamena
The Manadanza-1 well immediately south in Block 3107
recovered light oil of 41 API
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The Block 3104 Tsimiroro License area also holds
quality additional hydrocarbon resource potential
Amboloando Main Field – Heavy Oil under thermal recovery
Amboloando Tsimiroro South – discovered heavy oil
MOX-54 well obtained oil saturated core in Amboloando
Possibly suitable for thermal recovery – further appraisal req’d
Isalo-1 Main Field – discovered heavy oil - unappraised
Isalo-1 Tsimiroro South – Maroaboaly-2 Light oil shows
Sakamena Main Field – light oil prospectivity - unappraised
Sakamena Tsimiroro South – MRB-1 light oil shows
Sakamena Deep South – light oil prospectivity – unappraised
On trend with Block 3107 Manandaza-1 well - light oil recovered
Block 3104 Tsimiroro hydrocarbon potential exists in the
Post Mokara - Ankaramenabe Sandstone
Amboloando Sandstone
Isalo-1 Sandstone
Sakamena Group Sandstone sequence
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The other four exploration licenses position Madagascar Oil
as the key player in onshore Madagascar
Exploration Reports are complete on Block 3105/6/7 identifying the hydrocarbon prospectivity
Infill 2D seismic is required to mature the leads into drillable prospects
High profile prospectivity is the Block 3107 Manandaza-1 (MDZ-1) light oil show (41 API)
Note: As announced by the Company on 15 December 2014, Madagascar Oil S.A. has formally requested a two year extension of the exploration
periods for Blocks 3105, 3106 and 3107 from the Madagascar authorities. This formal request was made ahead of the scheduled end date of the
current exploration periods of 14 December 2014 and the Company is hopeful of receiving these extensions in the near future.
21
Madagascar Oil is adopting a clear and previously
proven path to value creation …
Demonstrate thermal
process and drive resource
conversion to reserves
Demonstrate and de-risk
Drive growth
Time
Exploit asset portfolio by
building stage development
and sequencing processes
Monetise upside of high-
quality resources with
follow-on projects
Establish asset clarity
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… With a number of specific initiatives planned to
build on previous successes
2005 2010 2015 2020 2025
Cyclic steam stimulation
pilot initiated in 2008
Steam flood pilot began
in April 2013
Technical performance
is as expected
Development plan
approval anticipated in
2015
Initiate Phase I to target
6,000 to 10,000 bopd of
oil by 2018
Determine exploration
potential (seismic+)
Initiate Phase II in 2019
to target 25,000 to
50,000 bopd by 2022
Design and initiate
additional Phase II
activities for 50,000+
bopd Completed
Planned
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• Controls a very large resource base
• Well positioned in Madagascar
– Industry leader
– Government relations
– Main license 25 years+ (upon development plan approval)
• Significant steps completed to reduce Tsimiroro uncertainty
– Resource base
– Thermal capability
– Phased development
– Economic viability
• Additional upside via Exploration potential
Summary: Madagascar Oil is well positioned and
moving forward with developments
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Funding strategy
Infrastructure Companies and Funds
Oil Services Companies
Commodity Trading
Companies
Industry Farm-out
IFC / World Bank
Banks / Reserve Based
Lending
Other Strategic Entities
Interest has been shown by strategic parties and the Board believes that:
• progress with the Tsimiroro Block, including the Declaration of Commerciality, the submission of the Development Plan and the entry into the 25 year Exploitation period under the PSC (subject to approval of the Development Plan) means that the Group should be in a position to review and consider other strategic funding alternatives over the coming months.
• the attraction of the region (East Africa), the country (a new political climate in Madagascar), the infrastructure which the project will require, the Tsimiroro Crude Oil assay and the scale of the contingent resource-base suggests that there may be significant interest in the project.
The Directors are committed to pursuing multiple potential avenues to maximise shareholder value.
Potential avenues for strategic interest include: