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Investor Update

Block 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. ā˜ 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
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