Investor Update

Pilot Project Timeline MADAGASCAR OIL ☐ The steam flood pilot is designed to de-risk the reservoir performance and demonstrate commerciality - projected start in Q3 2012. - - production response estimated in 12 to 18 months remaining pilot capital cost estimated at US$19 million and 15 months' cost of operations at US$10 million Initial start-up uses cyclic steam ("huff and puff"). Continuous steam should begin 90 days later Pilot design with 9 patterns - 16 producers and 9 injectors with peak production of 1,200 BOPD in 12 months - is the best method to test the potential recovery Full field production, upon pilot success, is anticipated to commence in 2018 with rates dependent on the ultimate resource volumes and pilot performance current Contingent Resource Best Case shows 150,000 bbls/day gross current Contingent plus Prospective Best Case shows 300,000 bbls/day gross Estimated to be over 50 years of production Steam Engineering Engineering and Construction Government Delay Drilling and Construction Flood Start Pilot Operation Analysis Jan 10 Jan 11 14 May 2012 Jan 12 Jan 13 Investor Update Jan 14 14

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