(Ecofin Agency) - Madagascar Oil Ltd., which has over 1.7 billion bbl of contingent resources in the Tsimiroro field, has provided an update on its strategic partnering process and financing initiatives.

For over two months now, the Company has been working closely with its strategic advisor, Jefferies International Limited (Jefferies), to consider the Company’s tactical options regarding the sourcing of a strategic partner(s) for the Tsimiroro development. A comprehensive Information Memorandum has now been finalized and a technical data-room has been opened with the view to attracting the optimal strategic partner(s) to assist the Company to fund and deliver the initial phases of its Tsimiroro development.

The Company’s process to identifying a potential strategic partner(s) is however making steady progress, despite the current adverse market conditions, with interest being conveyed by a number of credible parties. A clear timetable has been established and the process is currently expected to run through to the end of 2015, with the target of finalizing any transaction by the end of Q1 in 2016.

Moreover, the Company continues to progress discussions with investors to secure new financing, including, inter alia, proposals from certain of its existing major shareholders, to provide the requisite working capital pending completion of the Jefferies Process, which may take the form of debt, equity or a combination of both, (the Financing).

 “We are making steady progress in our search to secure a potential strategic partner(s), despite the prevailing difficult market conditions, and are very pleased with the level of interest being shown by a number of large international companies. The size of our resource base in Madagascar, the recent approval of our Development Plan for the Tsimiroro Block and the long term nature of the Tsimiroro license (at least 25 years from April 2015), is attracting companies of real scale and we will continue to work closely with Jefferies to secure a transaction which adds value for all of our shareholders. In the meantime, the Company will seek to secure appropriate Intermediate Financing in the near term and is currently considering alternative funding options, including the proposals from certain of our existing major shareholders”. CEO, Robert Estill told Rigzone