Madagascar Oil makes progress in search for partner

Madagascar Oil said it was continuing to work closely with Jefferies International in its bid to find a strategic partner for the company.

The London-listed group said it has received interest from a host of “credible parties” but expects the process to run until the end of the year, adding it aims to finalise a partnership agreement by the first quarter of 2016.

Madagascar, which like its sector peers suffered from adverse conditions in the oil markets over the last 12 months, was also in the process of negotiating a new financing deal to provide working capitals.

"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,” said group chief executive Robert Estill.

"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.”

Madagascar shares were down 12% to 5.50p at 1421 BST on Monday.