3rd Mar 2015 09:28
LONDON (Alliance News) - Madagascar Oil Ltd shares were trading higher on Tuesday morning after the company reported a big ramp up in production from its Block 3104 prospect and said it is continuing talks with local power companies to sell its crude oil.
Madagascar said cumulative oil production from its Block 3104 site reached 173,351 barrels at the end of February. Average production was 317 barrels per day in 2014, a rate matched in January of this year, though production declined to 295 barrels per day in February.
All the steam flood pilot wells on the block are now operational, the company said, with all equipment available and facilities now capable of providing sales specification Tsimiroro crude and blended heavy fuel oil for the domestic market in Madagascar.
The firm said it is in continuing talks with Jirama, the local electrical power generation company, along with other domestic end users, over the test sales of Tsimiroro crude and its HFO blend, with the first test volume scheduled for a local industrial user for delivery this month.
The company added its remains in talks with Madagascan authorities over approval of the Block 3104 Tsimiroro development plan.
Shares in Madagascar were up 9.2% to 4.095 pence on Tuesday morning, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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