Madagascar Oil has announced that following discussions held at the Executive Committee meeting regarding Blocks 3105, 3106 and 3107 on 9 December 2014, the Company’s wholly owned subsidiary, Madagascar Oil S.A., has written to the Office des Mines Nationales et des Industries Stratégiques (“OMNIS”) formally requesting a two year extension to the exploration period of each of the Exploration Blocks.
The letters to OMNIS were delivered on 12 December 2014 ahead of the scheduled end date of the current exploration periods of 14 December 2014.
Currently the company is awaiting the approval of the Development Plan after it announced commerciality of the Block 3104 Tsimiroro discovery in May this year.
Already the company has announced its intention to raise around US$50m in early 2015, subject to
Development Plan approval, to commence Phase 1 activities which include: Building upon existing SFP infrastructure which will be upgraded to enable production capacity of over 5,000 bopd sales, road upgrades to improve transport efficiencies, and Development drilling planned to commence in 2H 2015 with an estimated 450 wells to be drilled through 2018.
Madagascar Oil says the funds will also enable the company have the flexibility to adapt the pace and focus of development activity to respond to data gathered during the continued operation of the SFP in 2015 as well as enable it develop an evaluation drilling programme to commence in 2015, and other technical and sub-surface studies.
The company has also been raising money through placing as seen in September where approx.$20 million was raised with an open offer drive to raise $6.1 million having closed on 11th November.