EXECUTIVE SUMMARY

  1. Large frontier area 1 and 1/2 times the size of the North Sea comprising 9 sedimentary basins with limited exploration on the shelf areas only. The basins display varied structural styles, a thick sedimentary section (over 10 km or 33,000 ft) the presence of evaporites, and appear to be mostly oil-prone.

  2. Multi petroleum systems combined with large anticlinal structures. Several prospects with shallow drill depth (2000 mts) and in technologically manageable water depths (1300 to 1600 mts) have been conclusively established.

  3. Sea bottom samples and core holes indicate that the Davie Fracture Zone is not of volcanic origin but a more recent wrench fault zone similar to the San Andreas fault oil province of California.

  4. Period of expulsion and migration of hydrocarbons synchronous with the growth of the anticlinal structures.

  5. Near-by presence of large fossil oilfields in Madagascar (Bemolanga 21 billion barrels of reserves; Tsimiroro 8 billion barrels of reserves) and gas in Mozambique (Pande-Temane gas field: 3 Tcf recoverable; now being developed commercially with gas being piped to South Africa).

  6. Comprehensive geological/geophysical report (text plus 70 enclosures in electronic format) based on 31,000 Km of single and multi-channel 2D seismic (including 2200 Km of strategically positioned 98 fold CDP coverage acquired in 2001) tied to existing well control. Until recently, most of these data were not available for petroleum exploration purposes.

  7. Welcoming governments with attractive PSC terms and the proximity to the traditional tanker routes to Europe and the Far East. Large amount of open acreage.

  8. Excellent marine facilities at Diego Suarez, Madagascar, as supply base, manufacturing and repairs.

  9. Narinda Bay (northwest coast of Madagascar) provides an excellent location for platform assembly and/or construction.

  10. The Mozambique Channel is comparable to the North Sea in the mid-sixties when the discovery of a large gas field to the south (Groningen) attracted the attention to an area which is now established as a major petroleum producing province.

In conclusion, the area provides an opportunity for a major acreage play offering the possible discovery of large reserves on a short term basis, which could have a strong impact on the growth of a mega-independent or a major.