RE: Flying25 Jan 2016 10:23
25 Jan'16 - 09:12 - 1938 of 1940 1 0
It is vital with MOIL to remember that it has been working in Madagascar for eleven years.It has spent $300 million to get to where it isnow, ie right at the production stage. It is currently producing, its now awaiting results from potential customers tests on its oil, and it is expected to supply the government generating stations.
There is no other supplier in Madascar who can do this. Though the oil is called heavy, it is lighrter than water and MOIL use it for their steam program thus reducing costs even further. The oil is very shallow and therefore very cheap to produce.
Madagascar Oil has spent over $300 million in the past ten years through drilling 138 appraisal and pilot production wells in Block 3104 WHERE IT HAS 1.7 billion barrels of HEAVY OIL.
MOIL producing now will have its first sales on this years accounts, first sales due to be notified any time now.
This development mining title also covers appraisal activities of conventional light oil potential in the Tsimiroro South and Tsimiroro Deep South areas
It operates the four onshore blocks at 100% with its non-operating block at 40% with super major, Total.
MOIL is targeting production of 10,000 barrels of oil per day by end 2018
Although VSA Capital reckons the shares to be worth more than three times current levels (10p) at 35p, this is half its February target price of 70p. It's still a bullish stance and explains the 'buy'
Currently the management are still working on the funding. Since last year when they opened the farmout information room to investors they have been pondering the correct course to take. The market is currently awaiting the management decision on this, again any time now. Once that hits the RNS we are in for a serious raise as it is beyond doubt that the CEO Robert Astill will drive a good deal, his experience is at the top for years.