#117 June 2011 Madagascar Oil Limited Investor Update 17 June 2011 MADAGASCAR OIL Not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan. Investor Update 1#2Disclaimer MADAGASCAR OIL IMPORTANT INFORMATION: This presentation and any additional documents made available at the meeting (the "Presentation Materials") are being made available to existing shareholders of Madagascar Oil Limited (the "Company") for information purposes only and do not constitute an offer or invitation to subscribe for or purchase any securities. Neither the Presentation Materials nor anything contained in them nor the fact of their distribution shall form the basis of, be relied on in connection with, be considered to be or act as any invitation or inducement to enter into any contract or commitment whatsoever or otherwise engage in any investment activity (including within the meaning specified in section 21 of the Financial Services and Markets Act 2000). The information contained in the Presentation Materials is for background purposes only and is subject to completion, revision, amendment and verification. The Company is under no obligation to update the Presentation Materials. No reliance should be placed on the information and no representation or warranty (express or implied) is made by the Company, any of its directors or employees or any other person, and, save in respect to fraud, no liability whatsoever is accepted by any such person, in relation thereto. Some statements contained in the Presentation Materials may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Any forward-looking information contained in the Presentation Materials has been prepared on the basis of a number of assumptions which may prove to be incorrect and, accordingly, actual results may vary. Past performance of the Company or its shares is not a guide to future performance. The Presentation Materials have been prepared in accordance with English law and the English courts will have exclusive jurisdiction over any disputes arising from or connected with the Presentation Materials. By receiving any of the Presentation Materials you agree to be bound by the foregoing provisions. Investor Update 17 June 2011 2#3Contents Summary and Overview Tsimiroro Bemolanga Exploration Blocks Funding Projection Appendices MADAGASCAR OIL 17 June 2011 Investor Update 3#417 June 2011 Summary and Overview MADAGASCAR OIL Investor Update 4#5Summary MADAGASCAR OIL We have resolved with the Government of Madagascar our outstanding delays on our Tsimiroro asset. At our Management Committee Meeting on 16 June 2011 for the Tsimiroro Block (3104), the following matters were addressed: - - OMNIS and the Ministry of Mines & Hydrocarbons acknowledged that our Tsimiroro Production Sharing Contract is valid and its validity has never been in question. Our work programme and budget for 2011-2012 has been approved. The Company presented the complete work programme and budget for the 3 year steam flood pilot and OMNIS and the Ministry acknowledged that the annual work program is part of this three-year programme. OMNIS and the Ministry acknowledged that MOL will be exercising its option to a 2 year extension to the term of the Tsimiroro production sharing contract which will effectively extend the contract term to August 2014. The parties acknowledged that MOIL has suffered a six month force majeure event and the Management Committee will consider a six month extension if needed to complete the work programme. Management believes that it will have sufficient time to complete the Tsimiroro steam flood pilot based on our existing contractual rights and the assurances provided at our management committee meeting. We also have confirmation from OMNIS that the Management Committee Meeting for the Company's exploration Blocks (3105, 3106 and 3107) will be held on 6 July 2011 and we expect to resolve the delays for those blocks in due course. We believe that this exercise with the Government of Madagascar has served to educate the current government officials as to our historical compliance under our contacts, the amount of work we have completed in country relative to our peers and our plans for future development to bring online the country's first commercial oil production. The comprehensive review of Tsimiroro by the Government should serve to strengthen our future position and return risk to a normal level for African operations. 17 June 2011 Investor Update 5#6Summary ■ The Company fully achieved its work objectives for the year 2010 Tsimiroro field 24 new wells were drilled and ■ 430 km of ERT survey was completed in the heavy oil field play. Bemolanga field ■ The drilling program exceeded the planned 70 wells with 86 core wells drilled. MADAGASCAR OIL The Bemolanga assessment program and mining analysis was completed in April 2011. Exploration Blocks 880 km² of GORE micro-seepage survey area on Blocks 3105, 3106 and 3107 was completed on schedule and the laboratory test results are now being analyzed. ■ Upcoming value changing events on the Tsimiroro Block to increase commercial potential The Company expects Netherland Sewell & Associates (NSAI) to complete its report on the evaluation of the 2010 work on the Tsimiroro resource base in July 2011. The Company will restart the installation of the Tsimiroro steam flood pilot facility. Based on the delay incurred it is now expected to achieve first production in Q3 2012, rather than Q4 2011 as originally planned. ■ Funding for at least 2 years in place The delay in 2011 and added work on the Exploration Blocks may require supplemental funding in mid-2013. 17 June 2011 Investor Update 6#7Area Overview The Madagascar Oil Limited (MOIL) group concessions cover five contiguous onshore blocks in Madagascar comprising 29,500 km². Tsimiroro - A heavy oil field, currently with 965 million barrels Contingent Original- Oil-in-Place. - 2008 cyclic steam test successfully produced up to 150 bopd per well and over 2,000 bbls total of 13° API oil from 3 wells. - The 2010 CPR showed valuation for P50 NPV10 Contingent oil of US$1.1 billion at $70 Brent (source: NSAI CPR.) Bemolanga - The potential mining project has demonstrated 470 million barrels Contingent Petroleum-initially-in-Place gross MOIL share. The mining project economics are low and the project has been postponed for the time being. The PSC requirement for a $100 million bitumen extraction pilot project has been cancelled. - - The work plan has now shifted to deeper light oil or gas plays, pursuant to the PSC revisions accepted by the government. - - - A $10 million carry by Total remains, which will fund the Madagascar Oil share until at least mid-2012. Exploration Blocks 2009 seismic program identified nine prospect leads. 2010 Gore survey demonstrated potential on 3 to 5 of the leads. Tsimiroro Block 3104 Manambolo COMOROS Mayotte administered by FRANCE claimed by COMOROS Mozambique Channel MADAGASCAR OIL Glorioso Islands (FRANCE) Antsiranana 50 Nosy Be Maromokotro Mahajanga Bemolanga Block 3102 By field Bemolanga Field (Bitumen) psy Amparafaravola inte Marie Tsimiroro Field (Heavy Oil) AN NANARIV * Antanifotsy Antsirabe Manandaza Block 3107 Fianarantsoa, Manakara INDIAN OCEAN Block 3105 Morondava Block 3106 Toliara 20- Ambovombe 25- Tólanaro 17 June 2011 Investor Update 0 50 100 km 50 100 mi 50 7#8Oil Resources Introduction MOIL's significant oil resources are contained in two key assets: The 100% Working Interest Tsimiroro field is the largest asset. NSAI 2008 Original Oil in Place (OOIP) Tsimiroro Low Estimate Best Estimate High Estimate Contingent OOIP (mmb) 383 940 1781 Prospective OOIP (mmb) 7 708 3747 Total (mmb) 390 1,648 5,528 Source: Netherland Sewell & Associates, Inc. CPR June 2010 MADAGASCAR OIL The NSAI re-evaluation of the resource, following work completed in 2010, is expected in July 2011. Work continues to raise the Contingent Resources level in Tsimiroro to the more lucrative reserves level: We intend to restart construction of the steam flood pilot immediately to be able to determine the optimum technical parameters for commercial development of a full scale steam flood. Identification of the most favorable heavy crude sales options to optimize refinery value and transportation for the crude streams will progress when first production occurs on the pilot following Q3 2012. The 40% Working Interest Bemolanga asset represents a significant heavy oil mining play, but the mine currently falls below the economic hurdles necessary to proceed with construction of a bitumen extraction pilot. " 17 June 2011 The best estimate of the MOIL PIIP remains at 874 million barrels total and 470 million barrels Contingent, but is in the process of being reassessed by Norwest to include the 2010 testing data. Investor Update 8#9Tsimiroro MADAGASCAR OIL 17 June 2011 Investor Update 9#10Tsimiroro - ERT Campaign 2010 - ELECTRICAL RESISTIVITY TOMOGRAPHY (ERT) The objective of the ERT Survey was; to facilitate picking the locations for the 2010 delineation wells. to assess in more detail the Amboloando structures which could contain hydrocarbons. Results of the ERT survey: 47 ERT Lines were run comprising 430 km. The technique improved structural interpretation in the main portion of the field. It provided significant data improvement over prior seismic work. It identified a new field extension of the south end of the field. Employed 200 + national workers, from the areas of influence, in ERT activities (line clearance, access paths and transport and deployment of equipment and cables). The chart shown indicates the ERT lines run and the new wells drilled in 2010, based on the ERT picks. MADAGASCAR OIL 2010 ERT lines and wells Main Field 719 PS MOX-34 ◇ MOX-35 MOX-36 MOX-37 MOX-38 MOX-39 MOX-40 MOX-41 MOX-42 MOX-45 MOX-46 MOX-47 ◇ MOX-48 ... O MOX-49 MOX-50 ◇ MOX-53 MOX-54 MOX-55 MOX-56 MOX-58 MOX-60 MOX-63 ◇ MOX-64 17 June 2011 New Area Investor Update 10#11Expansion of Resource 2010 Program - Drilling and ERT The dual approach to increase the resource base as well as move resources from Prospective to Contingent was advanced as planned in 2010. 1. An initial review of the ERT survey data indicates the following; The main portion of the field appears to have confirmed and expanded the Contingent category. Additional oil accumulations were discovered in a new area on the south end of field which will require further assessment. Cost was US$4.3 million; slightly above the estimate of $4 million. 2. 24 well drilling program was successfully completed; 18 of 24 wells found favorable oil accumulations. 3 wells were water bearing and 3 wells were drilled in fault areas to assess ERT interpretation. Drilling cost was 15% lower than estimated at approximately US$170,000 per well, due to distribution of support cost to the ERT and steam flood pilot construction programs. Cost was US$4.1 million versus budget estimate of $6 million. Madagascar Oil's preliminary 2011 assessment of the Contingent areas compared to the 2009 NSAI Contingent areas is shown to the right. The goal of expanding the total resource and elevate Prospective areas to the Contingent Resource level will not be fully assessed until NSAI analysis is completed in July 2011. 17 June 2011 Investor Update MOIL Est. Contingent Area 2011 (yellow) NSAI Contingent Area 2009 (blue hatch) MADAGASCAR OIL 80 km 11#12Tsimiroro Field Planned 2011 FTG Bemolanga 2010 survey MADAGASCAR OIL Full Tensor Gravity (FTG) - airborne gravimetric survey Tsimiroro FTG survey purpose: 1. Tie Tsimiroro interpretation into 2010 Bemolanga Survey. Block 3102 2. Provide detailed Tsimiroro tectonic analysis and include all wells, ERT and seismic. 3. Assist in interpretation of a thick (150 meters), oil filled, Isalo reservoir identified in south Tsimiroro field during 2010 drilling campaign. 1) Proposed Contingent 2011 FTG Survey (Blue area) Will proceed based on approval of the Bemolanga FTG program on 17 June 2011 : 3,500 km² coverage or 7,000 Line km. Estimated budget: $1.3 million. Proposed Contingent 2011 FTG Survey (Red area) Will only proceed if Exploration FTG program is also approved for Blocks 3105 and 3107: Additional 2,500 km² coverage or 5,000 Line km Additional budget: $900,000 Block 3104 2) Block 3105 Block 3107 17 June 2011 Investor Update 12#13Future Plans and Adjusted Timeline Tsimiroro Field ☐ - - - MADAGASCAR OIL Conduct FTG and drilling, based on 2010 ERT and drilling results, to add to Contingent Resources Design FTG program for 2011 following analysis of 2010 results. Drill 20 new wells in 2011 and 2012. Budget US$6 million for 2011 and 2012 FTG and drilling delineation work program. Initiate the steam flood pilot to de-risk the reservoir performance and demonstrate commerciality Projected start now delayed from Q4 2011 to Q3 2012. Production response estimated in 12 to 18 months Remaining pilot capital cost estimated at US$30 million and 18 months' cost of operations at US$12 million Full field production, if pilot is successful, is anticipated to commence in 2016 to 2017 with rates dependent on the ultimate resource volumes and pilot performance Current Contingent Resource most likely case sees 87,500 bbls/day gross - Current Contingent and Prospective most likely case forecasts >150,000 bbls/day P50 level for US$70 and $80/bbl Brent scenario - Generates NPV10 of US$1.1 to $1.5 billion based on the Contingent Resources Generates NPV10 of US$2.1 to $3.5 billion based on the Contingent and Prospective Resources Engineering (Source: NSAI CPR: First figure based $70/bbl Brent in CPR. Second figure adjusted to $80/bbl Brent price per MOIL) Engineering and Construction Government Delay Jan 10 Jan 11 17 June 2011 Drilling and Construction Jan 12 Current end of 3rd exploration phase extended to 16 Aug 2013 Investor Update Steam Flood Start Pilot Operation Jan 13 Analysis Jan 14 Extension to 16 Aug 2014 (extension to February 2015 possible) 13#14Bemolanga MADAGASCAR OIL 17 June 2011 Investor Update 14#15Overview Bemolanga The Total and Madagascar Oil Joint Venture (the JV) has proposed and the government has agreed to: - Grant an extension of the current PSC exploration phase Shift the work program focus to pursuit of deeper basement plays on the Bemolanga block. MADAGASCAR OIL COMOROS Glorioso Islands *(FRANCE) 50 Mayotte (administered by FRANCE claimed by COMOROS) Antsirananal Nosy Be Maromokotro Mozambique -15 Channel Mahajanga eld Bemolanga Field (Bitumen) Amparafaravola psy Inte Marie Toamasina AN NANARIVO NOSY BARREN Antanifotsy Antsirabe The Bemolanga primary investigation to date has been focused on the bitumen deposit at 0-40m depth from surface. The current economics dictate that the mining project be put on hold. The revised PSC eliminates the requirement to commit to construction of a $100 million mining pilot facility. In 2008 Total E&P farmed in for a 60% share from MOIL for $140 million and became operator of the Joint Venture (JV). $100mm was paid upfront and the remainder as a carry on the next US$100 million of the JV expenditures for the Madagascar Oil 40% interest. The JV has agreed to reduce the carry amount to $80 million. $70 million has been spent to date leaving a $10 million carry ($4 million to MOIL) for work in 2011 and 2012. Bemolanga Block 3102 -20 17 June 2011 Investor Update Toliara Mananjary Fianarantsoa Manakara INDIAN OCEAN 20- Ambovombe 25- Tólañaro 0 0 50 100 km 150 100 mi 50 15#16Bemolanga Future Steps Madagascar Oil and Total will: ◉ - - Pursue deep plays. Conduct 8600 km of airborne FTG gravimetric survey to determine potential basement structures Assess need for seismic acquisition. The PSC will extend the current phase by one year and allow for an additional 2 year extension to drill an exploratory well. Continue assessing the mining potential Norwest to fully analyze the 2010 mine data and update the bitumen PIIP assessment. Based on preliminary observations, volumes will not likely change significantly from the 2009 data analysis. Continue to research the Taciuk ATP retort process to determine if it has the potential to improve both economics and mine extraction performance. 17 June 2011 Investor Update hola ng a Proposed 2010 FTG Survey MADAGASCAR OIL 2010 FTG Survey 19 tot 16#17Bemolanga Mining Conclusions 8042000 COCOHOR 500000 502000 504000 506000 508000 510000 512000 514000 516000 H AUTE 106 Height of bitumen At 3% cut-off 10-12 m 8-10 17 June 2011 6-8 4-6 2-4 0-2 NG N BA 003 ht WHO NINA SAPLE 9121 1129 18129 WAS N N127 NT2 + 121 1428 NGO4 WOMA RAZON ком CAMP MALAY GZON YEAR 5243 5118 1044 3541 North and South bitumen mine areas Investor Update MADAGASCAR OIL The JV drilled and cored 160 wells in 2009 and 2010 to define and test the PIIP and recovery. - - - - - - Completed tests on bitumen content. Tested extraction using hot water process. Estimated required facility and cost. Observations from JV mine analysis: The bitumen volume is greater than 1 billion barrels. Weight percent of bitumen in the ore is half that of Canadian averages at 5.54%. Conventional Clark hot water extraction, recovery above average bitumen of 75%. Madagascar Oil and Total E&P agree that: The low ore grade makes an economic project scenario unlikely in the near future. Commitment to a pilot extraction plant is not a prudent investment at this time. 17#1817 June 2011 Exploration Blocks MADAGASCAR OIL Investor Update 18#192010 Work Completed Exploration Blocks GORE report issued in March 2011 Three of the seven areas surveyed show good indications of hydrocarbon accumulation: 3107 Area 1 3105 Area 2 3106 Area 2 3105 MADAGASCAR OIL Two areas have poor hydrocarbon presence; (3105 Area 1 and 3106 Area 1). Two areas are inconclusive (Areas 2 and 3 in 3107). 3106 3107 The elevated hydrocarbon signature anomalies are not coeval with the seismic prospects, indicating a level of structural/stratigraphic complexity not currently fully understood. Gore and Madagascar Oil are reprocessing the data and will compare with seismic to determine next potential steps. 17 June 2011 Investor Update 19#20MADAGASCAR OIL Blk 3105 Blk 3107 Blk 3106 Exploration: Potential 2011 Work Program A Full Tensor Gravity Gradiometry (FTG) survey program is being proposed in 2011 to gain key data and efficiently utilize the time remaining this year. FTG preliminary estimate (subject to OMNIS approval) Block 3105 ~8,000 line km, Budget est. $1.7 million Block 3107~3,000 line km, Budget est. $600,000 Block 3106 ~5,000 line km, Budget est. $1.0 million FTG data benefits include: The ability to infill geologic interpretation between sparse seismic data. Improvement of seismic interpretations by providing a 3D geologic perspective. Assistance in guiding placement of additional 2D seismic lines if necessary in 2012. Reduction of exploration well risk by combining FTG, well, seismic, and GORE geochemical results. The exploration blocks require extensions from the government in order to execute the necessary work to define a drillable prospect on each block. " If a prospect is identified the proposal currently calls for wells to be drilled in 2013. At this time neither the extension nor the work programs have been approved by OMNIS. 17 June 2011 Investor Update Good Gore Survey Results 20 20#21Empty#22Funding Projection 17 June 2011 Investor Update MADAGASCAR OIL 22 22#23Funding Projection MADAGASCAR OIL MOIL currently has approximately $59 million to provide funding for the Tsimiroro field pre- development testing and the Exploration Block opportunities. Funding will now be allocated as shown: - Increasing resource and proving commerciality of Tsimiroro asset through a steam flood pilot Development of drillable prospects on the Exploration Blocks This cash is expected to fully fund the MOIL capital programme over the next two years. Capital Structure Drilling (Tsimiroro) 2011-2102 FTG and possible ERT (Tsimiroro) 2011-2012 Steam Flood Pilot (Tsimiroro) Use of funds Item Cost (US$ mm) 3.0 3.0 $30.0 $6.0 $3.0 Exploration Block seismic Working capital (through mid-2013) Total $3.0 $11.0 $59.0 Steam Flood Pilot operation - 9 months Exploration Block FTG Basic common shares O/S Restricted stock issued Common shares O/S Shares issuable upon: Options ($1.59/share) Warrants ($2.00/share) 192,365,157 4,000,000 196,365,157 1,565,788 718,370 198,649,315 The projected cash flow has been impacted by the program delay in 2011and an addition as follows: " The working capital and legal expense expended during the government dispute was $4 million. The addition of the FTG survey on the Exploration Blocks requires $3 million. There is potential that additional funds will be needed for all project decisions. However, every effort will be made to conserve capital on planned expenditures. In addition, certain events may adjust costs and/or provide income in the next 2 years. Investor Update 23 Fully diluted shares O/S (1) (1) Excludes 1,590,060 warrants and options with a strike price of $10.00/share or greater 17 June 2011#24Appendix MADAGASCAR OIL 17 June 2011 Investor Update 24#25Organization Introduction Executive Directors and Senior Management J. Laurie Hunter - Chairman and CEO Mark Weller - COO ☐ Seth Fagelman - CFO - Gil Melman General Counsel Technical Staff ◉ L. Jim Lederhos - Chief Engineer Matt Meyer Chief Mining Engineer - Jim Collins Chief Geophysicist ◉ Tim Whitacre - Chief Geologist ◉ Bill Moodie Operations Engineer Non-Executive Directors Ian Barby John van der Welle Andrew Morris Colin Orr-Ewing Madagascar Management Alvaro Kempowsky - General Manager Emma Ralijohn - Deputy GM Elden Gilbertson - Drilling Manager 17 June 2011 Key Contractors ◉ Ramsgate Engineering - Bakersfield ◉ Norwest Corp - Calgary ◉ ■ KBR Granherne - Houston Simmons Drilling - Calgary - SEMM Logging – Paris Worley Parsons - Calgary ◉ Decision Strategies - Houston Investor Update MADAGASCAR OIL 25#26MADAGASCAR OIL Multi Zone Steam Flood Pilot project to restart installation Key Features Proven technology and extensive industry experience minimizes concern over technical application in Tsimiroro. Vertical wells deal effectively with multiple zone layers and fault orientations. Injection wells can be completed in multiple sand intervals. ■ Steam injection and breakthrough is managed to optimize heat application. Much lower cost and higher potential recovery for shallow thin sands than SAGD or other thermal techniques. Steam Flood Schematic Injection Well Production Well TOW Zone Excellent analog is Chevron's Kern River steam flood project in California 1900 1910 1929 Kern River field produces 7,302 barrels per day. 1904 Produces a field record of 17 million barrels of oil nearly as much as Texas. Field enters a period of maturity, with production gradually declining over the next 50 years. 1913 Much of production is shut in for three years- no demand for the oil. Much of production shut in for 11 years due to the Great Kern River Oil Field Kem 1941 Bakersfield Lancaster Depression. 101 Santa Barbara Santa Clarita 0 MILES 100 Los Angeles Pacific Ocean 1900s 1910s 1920s 1930s 17 June 2011 Production Mode ▪A -Injection ■B -Hot Plate -C -Injection Field restored to production to Support World War II effort: 600 new wells are drilled. 1946 Demand subsides with the end of WWII. 1940s 1950 United States enters the Korean conflict; drilling resumes. 1950s 1961-1962 Average decline of field is 6 percent. Steam injection tests show promise, trigger buying spree. 19.277 1985 Oil production tops out at 141,000 barrels per day. 1960s 1970s 1980s 1990s Heat management initiative spawns innovations. 1995 Original well on Means Ranch is plugged and abandoned. 1990s Investor Update -120,000 barrels of oil per day 90,000 81,000 2007 3-D model 60,000 based reserve estimation starts 30,000 0 2000s 26#27MADAGASCAR OIL 100 Tsimiroro Steam Flood Pilot Facilities ■ Central Plant Designed Maximize use of equipment already in country imported by MOSA. Use oil to generate steam and electricity. Recycle most of the water and inject as steam. Uses technologies that are reliable and robust. Safety and Environmental protection built into plan. Safety berms Emergency water distribution around facilities and in oilfield. ■ Space between central plant components Instrumented to monitor key components, rates, temperatures and pressures, monitor and troubleshoot onsite and remotely. Water Preparation/Conditioning Steam and Electrical Generation Oil/Water Separation Oil Storage 17 June 2011 Investor Update LAY DOWN AREA 22 27#28Projected Tsimiroro Block 3104 Work Schedule 2010 Actual Schedule 2011 Estimated Schedule 2012 Estimated Schedule 2013 Estimated Schedule JFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJ Rainy Season Rainy Season Rainy Season MADAGASCAR OIL 2014 Est. Schedule A S O N D J F M A M J J Rainy Season Block 3104 Structural Interpretation Rain ERT contracting ERT mobilization ERT acquisition ERT lab processing Reservoir analysis NSAI Study Delineation drilling Mobilization Drilling Steam Flood Pilot Engineering and Design Site Preparation Permitting Infrastructure improvements Rebuild Steam Generation Equip. Drilling equipment Drill and complete 28 wells Install Steam Generation Equip. Staffing and supervision Long lead items - Facilities Central plant construction Field piping Electrical System Testing Water source and disposal Pre-Commission Systems Start cyclic steaming Start continious injection Production test Steam Flood evaluation 17 June 2011 Delay time Work completed Projected work Projected work-partial progress Investor Update 28#29Overview Exploration Blocks MOIL has 100% of three exploration blocks PSC 3105 - Manambolo contains two prospective areas covering over 38,000 acres five stratigraphic pinch-out leads in three Cretaceous depositional systems MADAGASCAR OIL Exploration drilling history Well Name Year Drilled TD Operator (metres) Result PSC 3105 - Manambolo Serinam-1 1971 Conoco 3,658 Heavy oil (100 API shows) - numerous oil and gas shows in down-dip wells Serinam East-1 1974 Chevron 2,970 Minor gas shows - lacking evidence of hydrocarbon charge Manambolo -1 1985 Amoco 4,262 Heavy oil (10° - PSC 3106 Morondava API shows) - three structural closures have been mapped covering over 31,000 acres Manambolo West-1 1987 OMNIS/P CIAC 2,600 15.6 mmscf/d DST reservoirs expected in the Isalo Il sandstones and Bemaraha carbonates Manambolo East-1 1990 Amoco 1,676 Minor gas shows gas and minor oil shows present in down dip wells within mapped reservoir intervals - charge and trap are the key risk factors ☐ PSC 3107 - Manandaza - four structural closures mapped covering 27,000 acres Lower Sakamena reservoir appears to be poor permeability, but if accumulation can be proved to be of sufficient size, fracturing techniques could be tested for production potential - large area of block has not been examined 17 June 2011 Investor Update Manambolo West-2 1993 OMNIS 1,890 No shows PCC 3106- Morondava Namakia-1 1984 Amoco 4,481 Live oil and trace gas Saronanala-1 1985 Amoco 2,385 No shows - PSC 3107 Manandaza Manandaza-1 1991 Shell 2,508 Non- commercial light oil (41° API) Manandaza South-1 1993 Shell 2,223 No shows 29#30☐ Block 3105: Preliminary GORE Results Hydrocarbon Potential Model #8: Red closures represent a >50% probability of subsurface trapped hydrocarbons. PA 1 does not appear to have any significant areas above background. PA2 indicates significant areas of potential Patterns consistent with fluvial or turbidite channels rather than assumed closure. However, current seismic coverage is insufficient to aid in the determination of the depths and continuity of the possible traps. + Next Steps Continue processing GORE data to examine continuity Run additional seismic to attempt to define a drillable prospect 17 June 2011 - 1000 acres Investor Update MOL EMBL MADAGASCAR OIL Prospective Area #1 Serin ESER-1 Prospective Area #2 30#31Block 3106: Preliminary GORE Results Hydrocarbon Potential Model #8: Red closures represent a >50% probability of subsurface trapped hydrocarbons. Saronanala East "A" and "B" do not appear to have any significant areas above background. Namakia East indicates good potential on the crestal position of the deep mapped closure (orange area on map and seismic line). However, potential indicated outside of the mapped closure suggests the trap may be in the east-west trending Cretaceous turbidite channels (highlighted in yellow). Next Steps Continue processing GORE data to see if a fit with seismic can create a drillable prospect 17 June 2011 Investor Update Saronanala East "A" and "B Area #1 Namakia East Area #2 MADAGASCAR OIL -- 1000 acres 31#32Block 3107: Preliminary GORE Results Hydrocarbon Potential Model #8: Red closures represent a >50% probability of subsurface trapped hydrocarbons. Good potential is indicated with above background readings noted in all three areas with Manandaza area almost saturated. The presence of hydrocarbon potential outside mapped closures indicates we may not understand the trap. The low porosity/permeability noted in past drilling may also play a role in the overall micro seepage response. Next Steps Continue reprocessing the GORE data to determine if a seismic fit can be developed. Area #1 1000 acres " Conduct further study on the impact of low permeability on GORE readings. ☐ Consider additional seismic if the broad distribution above background cannot be resolved by data processing. Ensure that any heavy indications that may be from shallow unmapped sands are excluded. 17 June 2011 Investor Update Manandaza S1 MADAGASCAR OIL Area #2 Area #3 32 2