30th Sep 2015 13:32
LONDON (Alliance News) - Madagascar Oil Ltd shares plummeted on Wednesday after it reported a wider pretax loss in the first half and said it hopes to secure a partner for its oil project in early 2016 which is initially aiming to produce up to 10,000 barrels per day.
Madagascar shares were down 22% to 4.11 pence per share on Wednesday.
The company, which is developing the Tsimiroro field in its namesake country, reported a USD6.6 million pretax loss in the first six months of 2015, widening from the USD5.9 million loss a year earlier after its administrative expenses rose it made a larger foreign exchange loss.
Madagascar Oil is seeking a partner for its project, which will continue to run through until the end of 2015 ith the hope of finalising a deal before the end of the first quarter of 2016. Although it is not producing, the company has a large number of wells already drilled on its project with 16 production wells and nine continuous steam injection wells in the pilot area.
Planning for the first phase development is on track, which will lead to production of between 7,000 to 10,000 barrels of oil per day, which involves the drilling of another 12 wells and the submission of the environmental impact assessment.
By Joshua Warner; [email protected]; @JoshAlliance
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