News Column

Madagascar Oil Pretax Loss Narrows On Lower Expenses, Impairments

June 30, 2014

Tom McIvor

LONDON (Alliance News) - Madagascar Oil Ltd Monday said its pretax loss narrowed in 2013 with expenses and impairments falling at the company as it develops its Tsimiroro asset towards test sales.

The oil and gas exploration and development company, which is yet to produce any revenues, said its pretax loss narrowed to USD12.1 million from USD13.6 million the previous year.

The company said its pretax loss narrowed as the company reduced its general and administrative expenses after closing its Houston office in August 2013, and its impairment charges fell.

In May, Madagascar Oil said that it had been granted an approval by the Madagascar Council of Ministers to complete test sales of its Tsimiroro crude oil, which will be the first market test of crude oil produced in Madagascar.

Oil production rates from the site have averaged 468 barrels of oil per day in April, and 361 barrels of oil per day in March.

On Monday, the company said it had total cash and cash equivalents of USD24.8 million at the end of 2013, which is not enough to enable it to progress development of the recently declared commercial Tsimiroro Field in 2015 and beyond.

Madagascar plans to submit the development plan in the second-half of 2014 before raising additional funds to meet its obligations for the Madagascan oil field.

Madagascar Oil shares were trading flat at 16.12 pence on Monday.

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Source: Alliance News

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