Madagascar Oil. Massive oil play!

Madagascar Oil are one that we here are watching very closely. THEY ARE A MULTI BILLION BARREL OIL PLAY. Fully funded through to 2014. Moil are currently coming off an all time low of 16.68p. The company listed in November  2010 on the AIM with a great call to arms to the City. They listed at 95p. The current share-price is 22p!  This is an absolute steal at the moment. Once we get into the fourth quarter then company news on their assets/discoveries/drills should begin to bring back the value that has been lost, mainly due to licence wrangling with the Madagascan government.

All outstanding issues with the Madagascan Government regarding their three exploration blocks was successfully resolved, as announced on the 5th April this year. There are no further disputes with the Madagascan Government. Moil are back on track.

There are several reasons why investors should take a very close look into the company. The main one being that 77% of Madagascar Oil shares are owned by Institutions. That leaves 23% on the open market. Any buying trends will significantly increase the stock. Remember Institutions have paid considerably more than the 22p they currently stand at. The recent placing this year on 22 Feb’ came in at 28p. It was fully subscribed. Private investors can buy at a significant discount to February’s placing of 28p, never mind the IPO price of 95p.

As the markets begin to settle down then so too will Moil they should rise significantly as they close in on “First Oil” at the end of this year Q4 2012.

Moil are focused on the development of heavy oil & conventional oil & gas deposits in five onshore blocks in Madagascar. OIP figures range from 1.1 billion right through to best case scenarios in excess of 6 billion barrels. They own significant exploration and development rights for oil and gas in Madagascar, in the last five years the Group’s total acreage & principal fields, Tsimiroro and Bemolanga, have been shown to have multi-billion barrel resource volumes in place. That means that the oil/gas is there. (Total E+P have 60% of the Bemolanga block and are operator. Total are big hitters)

Moil are known by the Blog to be expediting their work programme, playing catch-up after lost time (due to the Force-Majeure) to prove up the commerciality of their assets.

Recent field tests & studies suggest that a large portion of the Company’s Tsimiroro heavy oil assets have excellent potential for economic development. There’s a pilot steam flooding project about to be set in motion. Moil should be releasing the Airbourne Gravity Survey analysis, that was commissioned in 2011, this month. It’s a long-term project but the benefits to investors could be absolutely mouth-watering. The company expect to be producing oil for the next 20/50 years peaking at 150,000/300,000 bopd. This would put the discoveries in the top 10 in the world.

In September 2011 Netherland Sewell & Associates upgraded the company’s asset Tsimiroro. Contingent resources have increased by over 70% The link below makes interesting reading.

Its been a bumpy ride for Madagascar who had to suspend trading for six months after being listed for just 3 weeks! Declaring a Force Majeure. Then just when they thought all was going well they came out of suspension into a European sovereign debt crisis!  There isn’t a company on the market that hasn’t taken a hit during the European debt crisis. But there’s none as well placed as Madagascar to realise massive gains for Private Investors.

Madagascar Oil are a multi-billion barrel oil play fully funded right through to 2014. With first oil due in Q4 2012. They should be on your watchlist! 77% of the company are owned by Institutional Investors! Wake up! Massive gains to be had here! This is a world-class oil asset being progressed right under our noses while we are all looking the other way.




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