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PSC 3102 is located approximately 160 km from the west coast of Madagascar. The field has had over 400 core holes drilled in the 0 to 200 meter depth in the Amboloando formation, that have proven a bitumen deposit of 10 degree API oil is present. In 2006 DeGoyler and McNaughton estimated that there are in excess of 9 billion barrels of oil reserves in place. Madagascar Oil tested several of the cores recovered at laboratories in Canada and determined that recovery is feasible and conditions appear better for recovery than in the Canadian oil sands projects.
Total examined the project in 2008 and made the decision to join as a 60% partner and become the operator. An aggressive schedule was agreed for a 2 year work program to drill 130 additional core wells to further define the amount of recoverable reserves; and assess the efficiency and economics for ore extraction and recovery.
Prior to the Total entry, Madagascar Oil had contracted with Norwest Corporation in late 2007 to conduct an analysis of the work to that point. Norwest analyzed the field data, identified the deposits that were most likely to be able to effectively mined and designed a model to forecast the mining pit areas and net recovery. The study determined that the field would likely utilize two process trains of 90,000 barrels per day each and produce over a 30 year period.
An additional play exists in the block in the Isalo I sandstones at depths below 300 meters. This opportunity will be tested with 10 additional wells in 2010. If commercial amounts are discovered, this deposit may either be mined or extracted utilizing steam flood techniques.
In 2009 72 Amboloando core holes were drilled and analyzed. Results indicate that bitumen volumes are at least as large as initial estimates and bitumen quality is in line with prior work. Laboratory testing has also indicated favorable results for extraction performance and confirmed earlier work by Madagascar Oil. The objective of the 2010 program will be to continue to refine the Amboloando oil saturation data, determine the optimum recovery method, and prepare for a decision by mid 2011 on the construction of a pilot extraction plant.
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