Madagascar Oil provides an update on the Group's operations and on its latest development planning activities.

Highlights •As at 28 February 2015, cumulative oil production from Block 3104 had reached 173,351 barrels from a cumulative steam injection of 910,017 Barrels of Water Equivalent ('BWE'). •All Steam Flood Pilot ('SFP') wells on Block 3104 are operational, all steam generation equipment is available and the facilities are capable of providing sales specification Tsimiroro crude and blended Heavy Fuel Oil ('HFO') to the domestic Madagascar market. •Discussions continue with local electrical power generation company, Jirama, and other domestic end users over the test sales of Tsimiroro crude and HFO blend, with the first such test volume being scheduled to a local industrial user for delivery in March 2015. It is hoped that continuous sales contracts will follow successful outcomes of all of these tests. •Approval of the Block 3104 Tsimiroro Development Plan ('TDP') is still being considered by the Madagascar authorities and regular, productive, meetings have been, and continue to be, held between the Company's subsidiary, Madagascar Oil S.A. ('MOSA') and the Madagascar authorities to clarify issues raised by them since the TDP was submitted in late October 2014. Approval of the TDP would allow the commencement of the first 25 year exploitation/development phase under the Block 3104 production sharing contract (the 'Block 3104 PSC').

Tags: Madagascar Oil S.A.