Madagascar Oil has moved to quell speculation it has agreed a deal with strategic partners for its world class Tsimiroro field prompting a rise in its share price.
The London-based company said it was continuing to identify potential strategic partners to work with it on the development and funding of the Tsimiroro field onshore Madagascar but no deal had been done.
It acted after an increase in the company’s share price and “speculation” on online bulletin boards.
Shares in Madagascar Oil were up 13% at 3.80 pence on Tuesday afternoon, having risen as high as 6.10p earlier in the day.
In a statement, Madagascar said: “The company notes both the recent rise in the price of its ordinary shares, particularly over the course of today, and the speculation on the bulletin boards with regard to the partner process.”
It said 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.
Meanwhile, it remains in talks with its lenders over the release of “all, some or none” of the second tranche of $8million of a bridge financing facility agreed in September 2015. Its lenders are entities associated with the company’s four major shareholders – Outrider Master Fund, BMK Resources, SEP African Ventures and The John Paul Dejoria Family Trust.