Madagascar Oil submits the Block 3104 Tsimiroro Development Plan

Madagascar Oil has announced that the Block 3104 Tsimiroro Development Plan (TDP) has been submitted to the Executive Committee, ahead of the 4 November 2014 deadline set by the production sharing contract in respect of Block 3104.

The submission of the TDP follows regular working group meetings with OMNIS, to discuss all aspects of the TDP, since the Company’s subsidiary, Madagascar Oil S.A.  declared, in early May 2014, that Block 3104 is a “Commercial Discovery” under the terms of the Block 3104 PSC.

The Executive Committee is constituted of representatives of Madagascar Oil SA and representatives of the office des Mines Nationales et des Industries Strategiques (OMNIS).

Following submission of the TDP, OMNIS have a period of 30 days to make any comments on the TDP and, if no such comments are made then, the TDP is deemed approved.

Any comments which are provided by OMNIS will need to be considered by OMNIS and Madagascar Oil SA within 30 days of receipt and the TDP will require approval by the Executive Committee in accordance with the procedure set out in the Block 3104 PSC.

Assuming the TDP is approved, it is expected that OMNIS will obtain the 25 year exploitation mining title in relation to the exploitation period under the Block 3104 PSC.

In the meantime the Company continues to prepare for Phase 1 of the FDP, including securing the necessary funding to proceed, which, as previously announced, includes a potential further fundraising of up to $50m, to be undertaken in the short to medium term after the approval of the TDP.