Until recently SEP owned approximately a 23% equity interest in Madagascar Oil Limited (MOIL), an AIM listed company involved in the exploration and development of heavy oil and conventional oil deposits in five contiguous onshore blocks in Madagascar.
Madagascar Oil Limited (MOIL) is an AIM listed company that has an interest in five contiguous onshore blocks in Madagascar, representing an area of approximately 29,500km² (7.3 million acres). The main asset within the portfolio is the 100% owned Tsimiroro Block 3014 which contains the large Tsimiroro heavy oil field. The Tsimiroro field is a shallow reservoir (c 100-200m) containing heavy oil (14 API), which is conducive to thermal recovery techniques. Since April 2013 the company has been operating a Steam Flood Pilot project on the field. Cyclic Steam and Steam Flood techniques are being used to optimize recovery and enable development planning. The company declared commerciality of the project in May 2014, submitted a comprehensive Development Plan for the Block to the government in October 2014, and, on 15th April 2015 was awarded a twenty five year development license. The development license also permits additional extensions to allow a potential license term of up to 50 years provided production remains commercial.
In addition, the company’s portfolio contains extensive, untested, conventional exploration potential, both in the Tsimiroro Block and also in its 40% owned Bemolanga Block operated by Total SA. In 2011 Netherland Sewell and Associates reviewed the Tsimiroro Field. They allocated 2C Contingent STOOIP of 1.7bn bbls plus Best Estimate Prospective STOOIP of an additional 2.2bn bbls oil.