President of the Republic of Madagascar Visit

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

18 June, 2014 

MADAGASCAR OIL LIMITED

("Madagascar Oil" or the "Company")

Visit to Tsimiroro Field by the President of the Republic of Madagascar

Madagascar Oil is pleased to announce that His Excellency Hery Rajaonarimampianina, the recently elected President of The Republic of Madagascar (the "President"), and a number of other high ranking officials, today visited the Company's Tsimiroro Oil Field Facility.

The visit included the inauguration of Madagascar Oil's new crude blending and truck loading facilities by the President. This follows the recent decree approving test sales of the blended Tsimiroro crude as Heavy Fuel Oil into the Madagascar domestic market, announced by the Company on 23 May 2014, which will enable first commercial oil sales in Madagascar.

Amongst other dignitaries present was the Minister of Strategic Resources, Mr Joeli Valérien Lalaharisaina. In addition, five Ministers from key Government ministries were present, as well as Ambassadors of the United Kingdom and Mauritius, representatives of a number of national institutes, civil society and local and regional stakeholders.

It is intended that test sales of Tsimiroro crude oil will commence later in 2014 and will last for a period of up to six months, under the terms of the Production Sharing Contract.

Commenting on today's visit, Stewart Ahmed, Madagascar Oil Limited, Chief Operating Officer and General Manager in Madagascar, hosting the visit is quoted as saying: 

"We are delighted to welcome His Excellency the President, government Ministers, Ambassadors, representatives of important legislative bodies and the local communities, and all of our guests at today's event. We are deeply honoured to have so many distinguished visitors and thank them all for their support in this project. 

"We are grateful to the Malagasy authorities for their co-operation and partnership in reaching this milestone and for allowing us to bring the first sales of crude oil to the Madagascar market. This is a key step in the development of this project and today's attendance is a clear signal that we have been entrusted with a project of national importance. As a committed and responsible Company, Madagascar Oil will continue to work to bring benefits not only to the adjacent communities of the project, but to Madagascar as a whole."

Photographs of the event will be posted on Madagascar Oil's website, www.madgascaroil.com

Contact Information: 

Madagascar Oil Limited

Stewart Ahmed - Chief Operating Officer

Gordon Stein - Chief Financial Officer

+44 (0) 20 3356 2731

Strand Hanson Limited

Stuart Faulkner, Angela Hallett, James Dance 

+44 (0)20 7409 3494 

Mirabaud Securities LLP

Rory Scott, Edward Haig-Thomas 

+44 (0)20 7878 3360 

VSA Capital Ltd

Andrew Monk, Andrew Raca 

+44 (0) 20 3005 5000 

Bell Pottinger

Mark Antelme, Henry Lerwill 

+44 (0)20 7861 3232

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Stewart Ahmed, Chief Operating Officer of the Company, who has over 29 years of relevant experience in the oil industry. Mr. Ahmed is a member of the Society of Petroleum Engineers (SPE).