Benchmark Group
Proven Operator
Madagascar Oil is controlled by the Benchmark Group, a proven operator of heavy oilfield developments.
The Benchmark Group has been instrumental in the development of three previous heavy oilfields, each time creating significant shareholder and stakeholder value. In all three cases, the oilfields were considered challenging and had no, or negligible, production.
Madagascar Oil is the Benchmark Group’s 4th and potentially largest heavy oil development. Previous developments were undertaken by Nations Energy and Nations Petroleum, Calgary, Canada.
Previous Developments
Karazhanbas, Kazakhstan
The most significant of the Nations Energy’s three past developments was the Karazhanbas Field in Kazakhstan. Acquired in 1997, Nations Energy invested US$500M over the next ten years to rehabilitate the oilfield, establishing production of 50,000 barrels of oil per day.
Mishovdag-Kalameddin, Azerbaijan
At the time of acquisition, there were approximately 900 wells, but only 300 of them were producing. Nations Energy executed an extensive well repair and recompletion program as well as installing new water separation and reinjection facilities in order to fix historical pipeline corrosion problems. This development program was supported by a US$45 million debt and equity facility from the European Bank for Reconstruction and Development (EBRD).
Northwest Lost Hills, California
When Nations Energy acquired a 100% interest in the Northwest Lost Hills, California, heavy oil field, it was a completely greenfield development — there was no production, steam flood infrastructure, nor central processing facilities. Within 5 years, production reached 4,000 barrels of oil per day from 271 wells.
