(MENAFN- ProactiveInvestors - N.America) Madagascar Oil (LON:MOIL) in a statement moments before Tuesday's close told investors that its ongoing partnering process has not yet yielded any actionable proposals.
The company has been working since the summer to find a partner for the development of the Tsimiroro field on Madagascar. And it has been assisted by American investment banking firm Jefferies.
'There are a number of discussions ongoing but it will take time to confirm whether any of these discussions can be converted into an executable deal and there is no guarantee that any of them will be consummated this quarter as previously announced if at all' MOIL said.
Tsimiroro is a very large long term project. The onshore heavy oilfield hosts some 1.7bn barrels of resources though commercial production requires enhance production using steam.
Production operations were scaled back in September due to the weakness in the oil price.
A new partnership deal was targeted in September for the end of the first quarter of 2016.
MOIL also revealed in yesterday's statement that it is talking to its lenders which are essentially entities tied to the company's major shareholders over the possible release of funds from a previously agreed facility.
It wants to draw all or some of the second US$8mln tranche but said that the can be no certainty over the outcome of the discussions.
The company said it had released the statement in response to a recent rise in its share price and to address speculation on internet bulletin boards.
Rising from around 1.5p per share in mid-January to as high as 6.1p yesterday MOIL shares have gained as much as 300%. MOIL closed Tuesday's session at 3.88p per share.
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