NEW YORK and LONDON, Aug. 10, 2006 (PRIMEZONE) -- Madagascar Oil Ltd, a leading onshore oil and gas exploration and production company holding licenses for the largest onshore acreage in Madagascar, today announced that its 100%-owned subsidiary, Harvella Investment Limited, is no longer pursuing the blocks that were the subject of its former Memorandum of Understanding (MOU) with OMNIS (blocks 2102 and the former offshore block 4001).
Chief Executive Officer, Sam Malin, stated, "The company has a very strong onshore acreage position and as we proceed with exploration and move toward first production of oil, we have decided for now to focus our resources on the exploration and development of that existing acreage."
About Madagascar Oil
Headquartered in London and domiciled in Bermuda, Madagascar Oil Limited is an oil and gas exploration and production company focusing on development of onshore heavy-oil resources and exploration of onshore conventional oil and gas prospects in Madagascar. Through its subsidiaries, Madagascar Oil SA and Majunga Oil SARL, the company holds production-sharing contract (PSC) licenses for six onshore blocks, including the large Tsimiroro heavy-oil field and vast Bemolanga ultra-heavy oil field. Madagascar Oil has a 50% interest in a seventh onshore block through a joint venture with Tullow Oil. 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 to the social and economic advancement of the island nation.