Company Presentation

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

3 October 2013

MADAGASCAR OIL LIMITED

("Madagascar Oil", "MOIL" or the "Company")

Company Presentation

Madagascar Oil announces that a new updated Company Presentation is available on the Company's website which includes the following items which add to the information reported in the 2013 Half-Year Results on 3 September 2013.

Operations

· Steam injection on the SFP has now been continuous since May, having commenced on 8 April 2013. Four wells have been placed on continuous steam injection (ISF-1, 2, 5A and 9).

· Two steam generators out of the four at the Tsimiroro field are fully functioning; the third is pressure certified, awaiting control software and the fourth is in the early stages of re-commissioning.

· Steam Injection rates for individual wells remain lower than initially predicted, with a range of between 50-250 Barrels of Water Equivalent per Day ("BWEPD"). Steam generator maximum capacity trials were underway at the end of September 2013 and injection pressures are being increased, targeting those wells that have displayed the highest steam injection rates to date.

· Some wells (PSF-1, PSF-2, PSF-3, PSF-5) are into the third "huff and puff" cycle. An example of PSF-2 performance has been included in the presentation.

· Temperature logging of all three observation wells is taking place twice-monthly. Small but significant temperature increases are observed in wells OBS-1 and OBS-2 in the Amboloando oil reservoir. An example of OW-1 performance has been included in the presentation.

· The first well integrity event, resulting in steam to surface (ISF-8) as reported in the half-yearly results of 3 September 2013, was remedied by well intervention, therefore did not require a re-drill. A second well integrity event has occurred in ISF-4, also resulting in steam and oil at surface. This cannot be remedied by well intervention and a re-drill is currently being planned during October 2013. Both events were near-surface casing leaks and have been traced to poor 2012 well completion practices.

· Proposals to drill two additional new observation wells to monitor steam development in the reservoir are currently being considered by management.

· The SFP operations have clocked up over 2,140,000 man-hours without a Lost Time Incident as at the end of September 2013. The 2 million man-hours milestone was marked on 27 July 2013. This covers the Construction and early operation of the Steam Flood Pilot Plant. Cumulative oil production from the SFP as of 30 September 2013 was 14,957 Barrels.

· Cumulative Steam Injection into the SFP wells as at 30 September 2013 was 124,644 Barrels Cold Water Equivalent with four wells on continuous steam injection during September.

Tsimiroro Field Development Planning

· A Tsimiroro Development Planning Team ("DPT") has been formed, which includes responsibilities for defining subsurface, facilities, drilling, crude marketing, HSE and stakeholder inputs to the Development Plan. The DPT reports to a Board appointed Steering Committee.

· The current objective is to submit the Declaration of Commerciality in Q1 2014 and submit a Field Development Plan in accordance with the PSC terms, in 2014, in consultation with OMNIS.

· The DPT is examining options to define individual phases for the progressive development of the Tsimiroro Field. Phase 1 of a full field development is currently premised on using the existing SFP facilities to service an initial development catchment area including the 2008 and 2013 pilot areas. Whilst in early conceptual form, the DPT has defined the following components for Phase 1:

o Premised on defining an area with Stock Tank Oil Originally in Place of 50-100 MM Barrels which includes the current SFP area and the 2008 Cyclic Steam Stimulation Pilot wells.

o Applying thermal recovery methodology based on initial Cyclic Steam Stimulation followed by Steam Flooding and drilling wells within the defined area to a defined pattern to be determined from ongoing reservoir engineering work.

o Procurement of new Steam Generators sourced to meet the steam requirements of the additional wells.

o Exporting Tsimiroro crude, including the possibility of blending to meet market specifications and initially delivering to local markets in Madagascar by trucking. Markets further afield could potentially be accessed by trucking to a possible new west coast off-loading-point, possibly located in Maintirano, allowing regional shipping in small parcel sizes. Both options require improvements to the roads to the east and west of Tsimiroro.

o Phase 1 target peak oil production rates of up to 10,000 BOPD will be determined by well and reservoir responses. These rates will be subject to technical review as part of the DPT project scope.

· Phase 1 can commence on receipt from OMNIS of a Titre Minier d'Exploitation (TMEx, Development Licence) following acceptance of an approved Development Plan.

· Further Development Phases will be defined based on targeted reservoir data gathering and actual performance of the Tsimiroro reservoir.

Exploration

· Extensive sub-surface data gathering, Quality Control and consolidation is nearing completion including incorporation of newly discovered legacy seismic data.

· A new structural interpretation is underway, including an updated Prospect listing and is due for completion in November 2013.

· A Farm-Out campaign will commence in Q4 2013. Full Data Room access of interested parties will be managed from November 2013 using a specialist Farm-In/Out service advisor.

Financial

· Cash in hand on 30 September 2013 was approximately US$37.0 million plus further restricted cash balances of US$1.1 million.

· The Company is funded well into 2014, subject to there being no material exceptional costs, and the Company has the ability to reduce the pace of activity and costs should this be required. Average monthly expenditure is forecast to be approximately US$3.2 million until the end of 2013 including activity on the Company's exploration licences.

· Additional funds will be needed for the early Tsimiroro development (Phase 1). The scale of funds will be determined by the pace of the development, number of wells required and revenues from production.

Contact Information:

www.madagascaroil.com