1. Madagascar Oil Limited Overview
May 2019

2. Overview of the Opportunity
Large Certified Oil Reserves (NSAI 2019)
614 / 2,357 MMBO 2P/3P Reserves (Gross)
1,498 / 1,512 MMBO 2C/Prospective Resources
50% - 70% Oil Recovery using Steam Flood EOR
15o API Crude, 0.3% Sulfur, Low-Metals, No Wax
Onshore, Scalable, Development Ready
Low-Risk, Low-Cost Shallow Drilling
c. 180,000 BOPD Peak Production Capacity
Maintirano Marine Export Facility
Flagship Madagascar Oil & Gas Project
First National Petroleum Development License
Top-Tier PSC Terms, 50-Year Exploitation Period
NPV10 $2.7 Billion, IRR 26.3%
Oil Recovery Factor rates not unusual; Duri is 70% (? - check)
World’s biggest very low Sulphur oil reserve – IMO20 leadin

3. Attractive fiscal terms
Bottom line is fiscal terms are very good for Madagascar
If asked about Breakeven prices – note that once reservoir is heated up, production simply continues, ie can stop new drilling and still have production (unlike Shale). We expect breakeven to be around $30/bbl without intervention, noting can go to less than $15/bbl to cover opex, ie stay cashflow-positive (previous analysis had $36/bbl breakeven price (across full cashflow, noting this had only happened for 39 days since June ‘04), $15.3/bbl to cover opex)
NB Deleted economic terms slides

4. OIL & GAS HUB DEVELOPING IN MADAGASCAR REGION
Offshore Mozambique and Tanzania c Tcf of gas has been discovered in recent years; major world-scale LNG projects being developed
Onshore Madagascar over 20 billion barrels of oil has been found over the last 100 years
Majors: BP recently signed Madagascar offshore PSCs, ENI studying potential
Regulator OMNIS (Office des Mines Nationales et des Industries Strategiques) recently announced 40 offshore blocks being offered for tender
Madagascar region is becoming a key oil & gas centre