18th Mar 2014 11:32
LONDON (Alliance News) - Madagascar Oil Ltd Tuesday said oil production rates have increased on a month-by-month basis at its Tsimiroro Field and it expects to make a decision on the site's commerciality declaration soon.
The AIM-listed oil and gas exploration and development company said its oil production rates have increased at Tsimiroro over the past three months to 425 barrels of oil per day average in February, from 330 barrels average in January and 222 barrels average in December.
The company said its cumulative oil produced from its Steam Flood Pilot which commenced production in April 2013, was 63,436 barrels on March 16, with 35,180 barrels being stored in Field Storage Tanks.
Madagascar added that recent trials have proven that its steam generators could run on 100% Tsimiroro crude and independent confirmation has been received over the capability of Tsimiroro crude to meet feed-stock specifications for Madagascar power generation plants.
The company said plans are continuing for six-month test sales of the Tsimiroro crude in 2014 and its new Full Field Interpretation is nearing completion, which will provide updated Stock Tank Oil Originally In Place figures for the field.
Madagascar added that it will consider, at the end of this quarter or in the second quarter, whether there is sufficient data from the Steam Flood Pilot results and development work to enable it to make a decision on proceeding with a commerciality declaration for the site or whether further information is required.
The company said in December that it planned to declare commerciality around February this year.
"We are working towards the goal of a commercial Tsimiroro development and will continue to work closely with the Madagascar authorities and the Office des Mines Nationales et des Industries Stratégiques as we prepare to move towards the Full Field Development Plan submission later in 2014," Chief Operating Officer Stewart Ahmed said in a statement.
Madagascar Oil shares were down 14% to 14.81 pence, putting it in the top five AIM fallers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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