7th Aug 2014 11:34
LONDON (Alliance News) - Madagascar Oil Ltd Thursday said it has agreed amendments to its production sharing contract for its Tsimiroro block on the African island with government agencies, a further step in its efforts to get an exploitation contract for the site.
The company said the exploration period in the contract has been extended, while progress has been made towards developing and securing title for a 25-year exploitation period.
The oil and gas explorer and developer has until early November to submit a development plan for Tsimiroro, which was declared commercially viable in May.
"We are very pleased to have obtained approval for the amendment to the product sharing contract which we believe clarifies the steps required to pass from the current exploration period into the 25-Year exploitation period," Chief Operating Officer Stewart Ahmed said in a statement.
"We continue to work on the Tsimiroro Development Plan which we are on track to submit to Office des Mines Nationales et des Industries Stratégiques (OMNIS) ahead of the November 4 deadline," he added.
The company also said it is having ongoing constructive discussions with OMNIS on the structure and approach to its development plan.
Madagascar Oil shares were quoted down 4.9% at 14.50 pence Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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