8th May 2014 14:24
LONDON (Alliance News) - Madagascar Oil Ltd said Thursday that it had determined that its Tsimiroro oil field in Block 3104, western Madagascar, was a "commercial discovery" under the terms of its production sharing contract with its government partner.
The company has also submitted an appraisal report to L'Office des Mines Nationales et des Industries Strategiques, or Omnis, as is required under the contract.
This means that the company has to submit a full field development plan for Omnis' approval.
Both companies will discuss if the oil field is commercially exploitable, and Omnis will apply for a presidential decree for a mining title to cover the initial 25 year period covered under the production sharing contract.
The company has requested approval from the Madagascan government to test sales of between 55,000 and 73,000 barrels of oil to the local market from the field, which it plans to begin in the second half of 2014 for up to six months.
Oil production rates have averaged 468 barrels of oil per day in April, and 361 barrels of oil per day in March.
Madagascar said it was working on a financial strategy to secure funds to support the next phase of its activities, including the development of Tsimiroro.
Shares in Madagascar were trading up 0.1% at 20.50 pence Thursday afternoon.
By Hana Stewart-Smith; [email protected]; @hanassallnews
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