2nd Feb 2016 16:10
LONDON (Alliance News) - Madagascar Oil Ltd on Tuesday confirmed the continuation of its move to identify potential strategic partners to work with it on the development and funding of the Tsimiroro field.
However, the company said the process has "yet to yield any actionable proposals". The update came after an increase in the company's share price and "speculation" on online bulletin boards.
"There are a number of discussions ongoing, but it will take time to confirm whether any of these discussions can be converted into an executable deal and there is no guarantee that any of them will be consummated this quarter, as previously announced, if at all," Madagascar Oil said.
Meanwhile, it remains in talks with its lenders over the release of "all, some or none" of the second tranche of USD8.0 million of a bridge financing facility agreed in September 2015. Its lenders are entities associated with the company's four major shareholders - Outrider Master Fund LP, BMK Resources Ltd, SEP African Ventures Ltd and The John Paul Dejoria Family Trust LLC.
Shares in Madagascar Oil were up 13% at 3.80 pence on Tuesday afternoon, having risen as high as 6.10p earlier in the day.
By Samuel Agini; [email protected]; @samuelagini
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