Madagascar steam pilot to start in late '07

By OGJ editors
HOUSTON, Mar. 29 -- Madagascar could be producing its first volumes of oil within the year from a pilot steam injection project to be attempted in Tsimiroro heavy oil field in the northern Morondava basin 160 miles west of Antananarivo.

Madagascar Oil, a private Bermuda company that is opening a headquarters in Houston, has drilled more than 60 wells on the 6,670 sq km Tsimiroro block. Consulting engineers dubbed 611 million bbl of "contingent recoverable resource" out of 1.028 billion bbl of oil in place in the deposit.

Four steam generators and other equipment arrived at Maintirano for transport to Tsimiroro after the rainy season and road repairs. Madagascar Oil closed in late March on an $85 million equity-linked development capital facility in support of its operations.

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