Investor Update
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
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