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Investor Update

Overview Bemolanga The Total and Madagascar Oil Joint Venture (the JV) has proposed and the government has agreed to: - Grant an extension of the current PSC exploration phase Shift the work program focus to pursuit of deeper basement plays on the Bemolanga block. MADAGASCAR OIL COMOROS Glorioso Islands *(FRANCE) 50 Mayotte (administered by FRANCE claimed by COMOROS) Antsirananal Nosy Be Maromokotro Mozambique -15 Channel Mahajanga eld Bemolanga Field (Bitumen) Amparafaravola psy Inte Marie Toamasina AN NANARIVO NOSY BARREN Antanifotsy Antsirabe The Bemolanga primary investigation to date has been focused on the bitumen deposit at 0-40m depth from surface. The current economics dictate that the mining project be put on hold. The revised PSC eliminates the requirement to commit to construction of a $100 million mining pilot facility. In 2008 Total E&P farmed in for a 60% share from MOIL for $140 million and became operator of the Joint Venture (JV). $100mm was paid upfront and the remainder as a carry on the next US$100 million of the JV expenditures for the Madagascar Oil 40% interest. The JV has agreed to reduce the carry amount to $80 million. $70 million has been spent to date leaving a $10 million carry ($4 million to MOIL) for work in 2011 and 2012. Bemolanga Block 3102 -20 17 June 2011 Investor Update Toliara Mananjary Fianarantsoa Manakara INDIAN OCEAN 20- Ambovombe 25- Tólañaro 0 0 50 100 km 150 100 mi 50 15
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