"This is a major achievement as Madagascar Oil is the first company in the country to progress to the development phase. We can now focus on the full development of the 1.7 billion barrels of contingent resource already discovered," Madagascar Oil's Robert Estill told the Oil & Gas Council.
Madagascar Oil is an AIM listed international oil and gas company. It has five onshore blocks in Madagascar of which four are 100% WI and the fifth is 40% non-operated with Total as operator. The company has been operating in Madagascar for more than a decade.
"Our assets in Madagascar offer the opportunity to potentially find and develop a great portfolio of large heavy oil resources, light oil prospects and gas prospects. Not often is the industry able to find such significant contingent resources in an onshore environment," Estill said.
The remainder of 2015 Madagascar Oil would be working with the government on the long lead items for the development phase of the 3104 Tsimiroro project. "This will allow us to begin our development drilling campaign late in 2015 and on into 2016. The low oil prices have resulted in the cost of services coming down and delivery times shortening and quality people resources more available. This should be advantageous to us as we go out to negotiate the range of services necessary for this project."
While Tsimiroro is the company's largest project, it also has three 100% WI blocks in 3105, 3106 & 3107. Exploration reports have been completed and Madagascar Oil has identified hydrocarbon prospectivity and several leads.
"One contains an unappraised gas discovery and another contains a well that recovered light oil on drill stem testing. We will have to complete some seismic work and evaluation to mature those leads into drillable prospects. On Bemolanga Block 3102, which contains a world class bitumen resource, we are jointly planning the work program for this exploration period to mature the prospectivity of the license."
Going forward, Estill said the company's plans envisioned a 120-150km pipeline to the western coast and the construction of a port facility.
"We have already identified 1.7 billion barrels of contingent resource at Tsimiroro. Our goal is to move this resource to reserves. As we work to develop the field we hope to identify an even larger resource base. Additionally, our work on the southern portion of the block will target light oil or gas from deeper reservoirs."
A significant part of Madagascar Oil's operations is engagement with the local community, particularly in terms of the construction of schools, medical facilities, clean water facilities and support of high education.
"We have a very active social responsibility programme and will continue to do so in the future. Our work force is more than 85% Malagasy nationals. We have demonstrated that we can work safely and environmentally responsible in our operations," Estill said.
