Investor Update
Pilot Oil Sales
MADAGASCAR OIL
Oil Available for Sale:
Use some oil as fuel for pilot project steam -
initially 50-75% of volume - 25% over time.
Project has 180,000 barrels (1 year) of storage to
allow storage until local market can be
established.
Pilot could sustain approximately 500 barrels per
day for local use; No export from Madagascar
possible for small pilot volume.
Availability can extend for several years, but will
end after 12-18 month pilot unless local oil
market is cost-effective.
The Company is developing analysis for Madagascar
based markets:
-
Use as replacement fuel for power generation
working with Jirama (National Power Company)
could produce for several years until
commercial project developed.
could supply 10-20% of power fuel and offset
current imports.
- requires engineering to deal properly with
heavy oil.
BOPD & BFOPD
1,400
1,200
1,000
800
600
400
200
Pilot Production Profile
Estimated local
sales of 500 BOPD
2012
2013
2014
2015
2016
2017
2018
Oil
Fuel Oil Used ---NET Oil
Develop market as marine bunker fuel or fuel for
established mining projects.
May be possible to use some quantity for road
construction
14 May 2012
Investor Update
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