Investor Update slide image

Investor Update

Funding 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
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