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Investor Presentaiton

MADAGASCAR 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
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