Madagascar Oil has received a detailed proposal for an alternative financing transaction (the "New Financing Transaction") to the financing transaction announced on 18 and 20 December 2012 (the "Original Financing Transaction"), details of which were set out in the circular dated 28 December 2012 (the "Circular").

Accordingly, the Board has adjourned the Special General Meeting in order fully to explore the proposed New Financing Transaction, which is seeking to raise gross proceeds of up to US$65 million from a pre-emptive issue of new Common Shares (the "Pre-Emptive Share Issue").

The Pre-Emptive Share Issue would be undertaken at a subscription price of US$0.29 (18 pence) per Common Share (the "Subscription Price") and firm commitments have been received in respect of subscriptions in an amount of US$33.4 million (gross) from investors including a number of existing institutional Shareholders.

Tags: Madagascar Oil S.A.