NEW YORK and LONDON, June 15, 2006 (PRIMEZONE) -- In response to recent press reports, Madagascar Oil Ltd, a London headquartered oil exploration and production company holding the largest current onshore exploration and development rights in Madagascar, confirms that it has invited a number of companies to enter into farm-in negotiations on development of a block in Madagascar's Morondava basin that includes the Bemolanga heavy oil field. The field is contained in one of six onshore blocks for which Madagascar Oil holds production sharing contracts (PSCs) in Madagascar.
According to Sam Malin, CEO of Madagascar Oil, the company had previously held discussions with CNPC, among other companies, in 2004 on cooperation opportunities for the Bemolanga field but that no discussions or negotiations have been held with CNPC since January 2005 and CNPC is not among the companies that currently remain in the farm-in negotiation process. Mr. Malin also confirmed that Madagascar Oil has never been in any farm-in discussions or negotiations with Sinopec.
About Madagascar Oil
Headquartered in London and domiciled in Bermuda, Madagascar Oil Ltd is an oil and gas exploration and production company focusing on the development of onshore heavy oil fields and exploration of onshore conventional oil and gas prospects in Madagascar. Through its subsidiaries, Madagascar Oil SA and Majunga Oil SARL, Madagascar Oil holds production sharing contracts (PSC) for oil and gas exploration and development on six onshore blocks covering nearly 53,000 square kilometers (20,500 sq mi) in Madagascar, including a heavy oil field at Tsimiroro and an ultra heavy oil field at Bemolanga. Madagascar Oil and its management team are committed to supporting the country of Madagascar's efforts to develop its oil and gas resources in an efficient and environmentally sensitive manner and to contributing actively to the social and economic advancement of the island nation.