The awarding of the development license is the key with regard to moving forward with the development of 1.7 billion barrels of contingent resource already identified in the Tsimiroro field. Through the application of various thermal techniques, we believe that Tsimiroro is capable of being in the league of the world’s giant oilfields. Additionally, the Company is seeking to further balance the portfolio through a sustained evaluation of the prospectivity of the exploration properties. This work will specifically target potential high gravity oil or large volume gas opportunities.
The Company is fully committed to working closely with the Government of Madagascar to achieve the important strategic objective of developing its first commercial production and placing Madagascar in the league of significant oil suppliers. Madagascar Oil is fully engaged in making a positive contribution to the local communities in its operations area, and to the country, through its commitment to Corporate Social Responsibility through an array of community programs and projects. The Company is also participating in programs to sustain the healthy biodiversity of the Island.
In the near term, the Company’s primary goal is to prove up reserves at Tsimiroro, by demonstrating the commercial production capability of the existing, contingent and prospective resources in the field, as well as increasing the resource volumes through additional drilling and testing.
At the same time, the Company is actively exploring for conventional oil and gas drilling prospects on all five of the Madagascar blocks.
- Madagascar Oil drilled over 68 wells in the last four years and conducted geologic and reserves studies on the 100% interest Tsimiroro Block 3104. This work resulted in an assessment that the area referred to as the Tsimiroro Field may contain over 5.5 billion barrels of total oil-in-place, and that 1.78 billion barrels can currently be classified as Contingent (1C+2C+3C) oil-in-place.
In 2008, Madagascar Oil successfully produced 2000 barrels of 13 degree API crude from the Tsimiroro Field during a cyclic steam stimulation pilot test. The pilot project represented the first sustained production in Madagascar and proved convincingly that conventional steam production techniques hold great promise for developing the field.
Madagascar Oil experts have identified at least one significant prospect in each of the 100% interest Blocks 3105, 3106 and 3107. The Company shot 200 kilometers of seismic in 2009 and ran 800 square kilometers of micro seepage survey over seven areas in 2010. Results from these studies indicate that there are key steps to pursue to gain additional data necessary to define the leads as potential drilling prospects.