Presentación de PowerPoint...Drilled 138 appraisal and pilot production/injection wells in Block 3104 Designed, constructed and operates the Tsimiroro steam flood production facility

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Company Presentation

March 2015

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DISCLAIMER

The information contained in this document has been prepared by Madagascar Oil Limited (the “Company”). This document is being made available for information purposes

only and does not constitute an offer or invitation for the sale or purchase of securities or any of the assets described in it nor shall they nor any part of them form the basis of or

be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or otherwise engage in any investment activity (including within

the meaning specified in section 21 of the Financial Services and Markets Act 2000).

The information in this document does not purport to be comprehensive and has not been independently verified. While this information has been prepared in good faith, no

representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its directors, officers,

employees, agents or advisers as to, or in relation to, the accuracy or completeness of this document, and any such liability is expressly disclaimed. In particular, but without

prejudice to the generality of the foregoing, no representation or warranty is given as to the achievement or reasonableness of any future projections, management estimates or

prospects contained in this document. Such forward-looking statements, estimates and forecasts reflect various assumptions made by the management of the Company and

their current beliefs, which may or may not prove to be correct. A number of factors could cause actual results to differ materially from the potential results discussed in such

forward-looking statements, estimates and forecasts including: changes in general economic and market conditions, changes in the regulatory environment, business and

operational risks and other risk factors. Past performance is not a guide to future performance.

The document is not a prospectus nor has it been approved by the London Stock Exchange plc or by any authority which could be a competent authority for the

purposes of the Prospectus Directive (Directive 2003/71/EC). This document has not been approved by an authorised person for the purposes of section 21 of the

Financial Services and Markets Act 2000.

The information contained in this document is subject to change, completion or amendment without notice. However, the Company gives no undertaking to provide the recipient

with access to any additional information, or to update this document or any additional information, or to correct any inaccuracies in it or any omissions from it which may

become apparent.

Recipients of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements. This document does not constitute

an offer to sell or an invitation to purchase securities in any jurisdiction.

Disclaimer

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Drive to Value

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Madagascar’s leading and longest

operating oil and gas company

Operating four onshore blocks (100%)

and non-op (40%) with super major, Total

First company advancing to the upstream

oil and gas development phase

Pending 25-year development license

approval for Block 3104 (Tsimiroro)

Controls greater than 1.7 billion

barrels of contingent resource*

G r o u p S u m m a r y R e g i o n a n d A s s e t L o c a t i o n

Madagascar Oil is developing a promising portfolio of

onshore blocks in a region of growing prospectivity

* Based on Company estimates

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Spent over $300 million in past 10

years

Drilled 138 appraisal and pilot

production/injection wells in Block 3104

Designed, constructed and operates

the Tsimiroro steam flood production

facility

Malagasy nationals comprise approx.

85% of the Group’s workforce

Safety & environmentally focused

G r o u p S u m m a r y R e g i o n a n d A s s e t L o c a t i o n

Madagascar Oil has successfully undertaken drilling,

construction and production operations in country

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Madagascar Oil has an excellent portfolio of assets

with strong follow-on development potential

Name Block Area, Sq. Km Notes

Tsimiroro 3104 ~6,700 • Thermal operations

• Deeper pay potential

Manambolo 3105 ~4,000 • Exploration potential

Morondava 3106 ~6,800 • Exploration potential

Manandaza 3107 ~6,600 • Exploration potential

Bemolanga 3102 ~5,500

• Bitumen

• Total (Operator) has

60% stake

Onshore blocks in Madagascar

Past well and seismic dataset in all exploration areas

No new technology required for the developments

Reservoir depth of ~200 m – Tsimiroro

Note: As announced by the Company on 15 December 2014, Madagascar Oil S.A. has formally requested a two year extension of the exploration

periods for Blocks 3105, 3106 and 3107 from the Madagascar authorities. This formal request was made ahead of the scheduled end date of the

current exploration periods of 14 December 2014 and the Company is hopeful of receiving these extensions in the near future.

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President Hery Rajaonarimampianina was elected through

democratic elections in 2013 – investiture in January 2014

The new President and government are receiving growing

support including recognition by the United Nations and…

…several countries including United States, Russia &

South Africa …plus the European Union

President Rajaonarimampianina inaugurated Madagascar

Oil’s Tsimiroro crude oil blending facility in June 2014 and

said:

“The success of this project is our sincere wish so

that the hopes of the whole people to see his

offspring enjoying a better future become a reality.”

N e w D e m o c r a t i c G o v e r n m e n t

A new democratic Government committed to

development is being supportive of Madagascar Oil

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Madagascar Oil is working towards three key goals

1 Convert resource to reserves

2 Deliver profitable development

3 Grow shareholder value significantly

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Five themes pave the path to sustainable value

Supported by an engaged government

Upside potential in follow-on exploration

Proven, talented management team

Large, high-longevity, early-stage resource

Proven and mature thermal technology

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A talented executive team able to create value by leveraging

proven technical, business and financial expertise

Robert Estill, CEO

• Over 30 years of leadership & executive management

experience in oil & gas exploration, production &

development

• VP of Strategic Planning & Portfolio management and

President of Marathon Oil UK whilst at Marathon

• Area Manager of Duri steam flood in Indonesia for 4

years – world’s largest steam flood operation and

production peaked at 300,000 bopd during his leadership

• Led thermal operations as California BU manager at

Kern River

Note: Michael Duginski, former COO Berry Petroleum, added to Board in January 2015 to further strengthen Company

thermal experience.

Stewart Ahmed, COO & General Manager

• 30 years as a Petroleum Engineer and General Manager

with considerable international experience.

• 12 years with Chevron production operations in the

North Sea and Gulf of Mexico including the Alba Heavy

Oil development.

• Former Senior Petroleum Engineering Consultant

including development projects in Ireland, Pakistan, Iraq,

Norway and Sudan

• 11 years in Yemen and Syria including managing the

exploration and subsequent developments of the

Sharyoof and Bayoot fields with Dove Energy

Gordon Stein, CFO

• Chartered Accountant with over 25 years of experience

in upstream oil & gas operations and developments

• Previously CFO of Cadogan Petroleum, Vanguard

Energy, Regal Petroleum & Acorn Oil & Gas

• Worked on oil and gas developments in the UK, Ukraine,

Tunisia, Venezuela, Algeria and Turkmenistan

• Has raised nearly US$ 1.5bn in funds to support oil and

gas operations since 2001

Dr. Emma Ralijohn, Deputy General Manager

• A former finance adviser to the President of Madagascar.

She was also a director of the Madagascar Central

Bank.

• Additionally, Dr. Ralijohn directed the US$110 million US-

backed development fund for Madagascar.

• Joined Madagascar Oil in 2008 and has managed

Government interfaces, Public Relations and CSR co-

ordination during the Tsimiroro thermal pilots and

Development Plan submissions

• Represents Madagascar Oil on Extractive Industries

Transparency Initiative (EITI)

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* E s t . C u m . P r o d u c t i o n

B i l l i o n b b l

* * C o n t i n g e n t R e s o u r c e ,

B i l l i o n b b l

Tsimiroro is a heavy oil reservoir capable of being in

the league of the world’s giant oilfields

NetherlandSewell (2011)

Madagascar Oil(2014)

2.21 2.36

Kern River,California

Duri, Indonesia

P50 1.70

P10 1.10

P90 2.46

Notes:

• (*) Kern River and Duri estimates include cumulative production to date based on publically available data.

• (**) Madagascar Oil Tsimiroro Contingent Resource figures are as submitted in the 2014 Block 3104 Development Plan in October 2014.

Low 1.33

Best 1.80

High 2.45

Source: ADI Analytics LLC, Houston, Feb. 2015

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Tsimiroro is a potential giant with enough contingent

resource to position it as a giant oilfield

Resource Potential by Production Mechanism

(Million Barrels of Oil Equivalent)

680 1,700

Cyclic SteamStimulation

Steam Flooding Additionalresource potential

Total contingentresource

170 - 425

600 - 1,020 Recovery of

10-25% OOIP (*)

Recovery of

40-60% OOIP

Source: ADI Analytics LLC, Houston, Feb. 2015

Note: (*) OOIP – Original Oil in Place

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Tsimiroro full field total costs/bbl can compete well

with most other onshore resources

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

0 10 20 30 40 50 60 70 80 90 100

Crude Oil Supply Curve

Illustrative as of January 2015 Oil Price, $/bbl

Onshore Middle East

Offshore Shelf

Heavy Oil

Onshore Russia Onshore Other

Deep- water

Ultra-deepwater

Onshore Light Tight Oil

Oil Sands

Arctic

Million Barrels of Oil Per Day Source: ADI Analytics LLC, Houston, Feb. 2015

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An indicative introduction to Steam Flooding in the

Tsimiroro Field

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The Tsimiroro Steam Flood Pilot began in April 2013 -performance comparable with other successful thermal projects

Steam

generation

Steam

distribution

Separation

Oil

storage

Oil

Production

Conceived after CSS “Huff and

Puff” success in 2008

Designed to test thermal recovery

process used in California and

Indonesia

Steam flood pilot drilled 28 Wells in

2012 including 9 injection, 16

production, 3 observation, and

additional water sourcing and

disposal wells

Start-up of all 25 production /

injection wells under CSS

Average well production rates of

20 BOPD achieved

Produced over 170,000 Barrels Oil

to end February 2015

Cumulative Steam Oil Ratio of 4-6

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The Tsimiroro steam flood pilot is generating

extensive data to support broader deployment

Steam flood pilot used a 5-spot pattern

with 16 production and 9 injection wells

A log cross section shows good uniform reservoir quality and oil

column and reservoir continuity across the steam flood pilot area

Well wireline logs show a 70-80 m thick

Amboloando sandstone at 110-120 m depth

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Also, the Tsimiroro steam flood pilot is yielding the

appropriate steam-oil production response

0.00

5.00

10.00

15.00

20.00

25.00

0

50

100

150

200

250

300

350

400

450

Stea

m O

il Ra

tio (B

arre

l/Bar

rel)

Mon

thly

Ave

rage

Oil

Prod

uctio

n Ra

te (B

OPD)

Tsimiroro Steam Flood Pilot Gross Oil Rate and Steam Oil Ratio History

Oil Production Rate

Steam Oil Ratio - Cumulative

ISF-5 Back-Flow Peak

Remedial Wellwork Programme

CSS Catch-Up Peak

2014 Ave 317 BOPD

0

500

1,000

1,500

2,000

2,500

Mon

thly

Aver

age

Stea

m In

jectio

n Ra

te(BW

EPD)

Tsimiroro Steam Flood Pilot Steam Injection Rate History

Shut-Ins for DrillingObservation wells

Shut-Ins for Remedial Wellwork Programme

Wellwork Programme

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The Block 3104 Tsimiroro License area also holds

quality additional hydrocarbon resource potential

PROSPECTIVESTRUCTURES

3 GRAVITY ANOMALIES WITHIN

THE GRABEN FEATURE

Deep South

Tsimiroro Main Field

Tsimiroro South Maroaboaly

PINCHOUTS

FAULT

CLOSURE

Basement

Oil is also encountered above and below the Main Field

Amboloando heavy oil reservoir

The Tsimiroro South structure has oil in the Amboloando

and deeper shows including light oil

The Tsimiroro Deep South structure is undrilled with

potential light oil prospectivity in the Sakamena

The Manadanza-1 well immediately south in Block 3107

recovered light oil of 41 API

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The Block 3104 Tsimiroro License area also holds

quality additional hydrocarbon resource potential

Amboloando Main Field – Heavy Oil under thermal recovery

Amboloando Tsimiroro South – discovered heavy oil

MOX-54 well obtained oil saturated core in Amboloando

Possibly suitable for thermal recovery – further appraisal req’d

Isalo-1 Main Field – discovered heavy oil - unappraised

Isalo-1 Tsimiroro South – Maroaboaly-2 Light oil shows

Sakamena Main Field – light oil prospectivity - unappraised

Sakamena Tsimiroro South – MRB-1 light oil shows

Sakamena Deep South – light oil prospectivity – unappraised

On trend with Block 3107 Manandaza-1 well - light oil recovered

Block 3104 Tsimiroro hydrocarbon potential exists in the

Post Mokara - Ankaramenabe Sandstone

Amboloando Sandstone

Isalo-1 Sandstone

Sakamena Group Sandstone sequence

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The other four exploration licenses position Madagascar Oil

as the key player in onshore Madagascar

Exploration Reports are complete on Block 3105/6/7 identifying the hydrocarbon prospectivity

Infill 2D seismic is required to mature the leads into drillable prospects

High profile prospectivity is the Block 3107 Manandaza-1 (MDZ-1) light oil show (41 API)

Note: As announced by the Company on 15 December 2014, Madagascar Oil S.A. has formally requested a two year extension of the exploration

periods for Blocks 3105, 3106 and 3107 from the Madagascar authorities. This formal request was made ahead of the scheduled end date of the

current exploration periods of 14 December 2014 and the Company is hopeful of receiving these extensions in the near future.

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Madagascar Oil is adopting a clear and previously

proven path to value creation …

Demonstrate thermal

process and drive resource

conversion to reserves

Demonstrate and de-risk

Drive growth

Time

Exploit asset portfolio by

building stage development

and sequencing processes

Monetise upside of high-

quality resources with

follow-on projects

Establish asset clarity

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… With a number of specific initiatives planned to

build on previous successes

2005 2010 2015 2020 2025

Cyclic steam stimulation

pilot initiated in 2008

Steam flood pilot began

in April 2013

Technical performance

is as expected

Development plan

approval anticipated in

2015

Initiate Phase I to target

6,000 to 10,000 bopd of

oil by 2018

Determine exploration

potential (seismic+)

Initiate Phase II in 2019

to target 25,000 to

50,000 bopd by 2022

Design and initiate

additional Phase II

activities for 50,000+

bopd Completed

Planned

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• Controls a very large resource base

• Well positioned in Madagascar

– Industry leader

– Government relations

– Main license 25 years+ (upon development plan approval)

• Significant steps completed to reduce Tsimiroro uncertainty

– Resource base

– Thermal capability

– Phased development

– Economic viability

• Additional upside via Exploration potential

Summary: Madagascar Oil is well positioned and

moving forward with developments

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Funding strategy

Infrastructure Companies and Funds

Oil Services Companies

Commodity Trading

Companies

Industry Farm-out

IFC / World Bank

Banks / Reserve Based

Lending

Other Strategic Entities

Interest has been shown by strategic parties and the Board believes that:

• progress with the Tsimiroro Block, including the Declaration of Commerciality, the submission of the Development Plan and the entry into the 25 year Exploitation period under the PSC (subject to approval of the Development Plan) means that the Group should be in a position to review and consider other strategic funding alternatives over the coming months.

• the attraction of the region (East Africa), the country (a new political climate in Madagascar), the infrastructure which the project will require, the Tsimiroro Crude Oil assay and the scale of the contingent resource-base suggests that there may be significant interest in the project.

The Directors are committed to pursuing multiple potential avenues to maximise shareholder value.

Potential avenues for strategic interest include:

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