http://www.investegate.co.uk/article.aspx?...02060701107703Q

6th February 2007

Commencement of Drilling on the 'Jebel Hafit' Prospect, Onshore Sultanate of Oman and Operations Update

Highlights

• Indago spuds Al Jariyal-1 on Jebel Hafit, a high impact exploration prospect.

• 2D seismic acquired over leads in Blocks 31 and 47 onshore Oman

Indago is pleased to announce that it commenced drilling the Al Jariya-1 exploration well on the Jebel Hafit prospect, in Block 31 onshore the Sultanate of Oman (Indago 100%). At 0600 hrs on 6th February 2007 the well was drilling ahead in 26' hole at a depth of 103m, having already set 30' casing.

The well, drilling to approximately 5900m, is targeting the Natih and Thamama formations which are proven producers of both gas and condensate in analogue structures such as Shams (operated by PTTEP), Saj'aa (BP) and Margham (DME).

Al Jariya-1 is targeting a mean, gas and condensate reserve base of approximately 1 billion boe and is expected to take between 125 and 160 days to drill.

Additionally, as part of our strategy to create further, high impact drilling opportunities, Indago has been acquiring 2D seismic over its leads in Blocks 31 and 47 onshore Oman. Currently the Company have shot around 100 km of new seismic, with encouraging results. The programme is expected to continue until March 2007, possibly encompassing incremental leads identified in Block 43A, a new Block in our portfolio which was announced to the market in June last year.

John Hurst, Exploration Director of Indago Petroleum commented

'Jebel Hafit is a high impact exploration prospect and it has taken five years from originally identifying the potential and defining the prospect, to finally starting drilling. It is incredibly exciting to be at this point, as prospects with such large upside potential are rare.'

REVIEW BY QUALIFIED PERSON

The technical information and opinions contained in this announcement have been reviewed by Peter Sadler, CEO of Indago Petroleum, who is a qualified Petroleum Engineer (MSc Imperial College, London, 1982) and has been a member of the Society of Petroleum Engineers since 1981.

Indago Petroleum Limited

Peter Sadler, Chief Executive +971 4 332 5444
Martin Groak, Finance Director +44 20 7494 6085
College Hill +44 20 7457 2020 Paddy Blewer Nick Elwes
Nabarro Wells (NOMAD)+44 20 7710 7406 Marc Cramsie
Website: www.indagopetroleum.com


Notes to Editors
Indago Petroleum:

Indago Petroleum plc is an oil and gas exploration and production company which listed on the AIM market of the London Stock Exchange in December 2005. Indago is geographically focused in the Middle East and is the operator of six licences in the Sultanate of Oman and the United Arab Emirates. The assets include Bukha, a producing gas-condensate field and West Bukha, an approved gas-condensate development. Both fields are located offshore Oman.

Indago is also an active explorer and has commenced an exploration drilling campaign comprising three onshore wells targeting gas-condensate bearing structures. This programme is planned to be completed by mid 2007.

Indago aims to become a leading producer of gas, condensate and LPG in Oman and the United Arab Emirates. This will be achieved through active exploration, development of the existing portfolio and acquisition of related acreage and undeveloped resources in the region.

Indago's technical and commercial expertise is focused on a tightly defined geographical area of politically stable countries with proven hydrocarbon reserves and an active gas market. The Company's competitive advantage lies in its strong acreage position near existing infrastructure and a small professional team with long-term experience in the region.

A good post from TGG over at AFN, and shows the size of the next drill, 443p of unrisked upside..............



thegreatgeraldo - 9 Feb'07 - 09:30 - 334 of 334

Mirabaud suggested this week...

"the key well in a three well exploration programme has just spudded on the massive Jebel Hafit structure. At the current share price investors are effectively paying 16p of option value for 443p of unrisked upside, if Jebel Hafit comes in."

their risked valuation is summarised,

"We have a risked core valuation of 35p per share for Indago’s producing and development assets and a further 151p per share of risked exploration upside for the three well programme currently underway onshore Oman."

... so current well offers decent upside, I think it's fair to say ;-#))

http://www.oilbarrel.com/news/article.html...ed=oilbarrel_en

13.02.2007

Indago Petroleum Goes For A High Impact Exploration Well Onshore The Sultanate Of Oman

We recently reported how Indago Petroleum, which floated on London’s AIM in December 2005 raising a substantial sum of money (US$120 million) to drill an array of prospects, had a success with a gas condensate development with one of its prospects. Now it is having a stab at a high impact exploration well which could give it a huge step up.

Indago is the operator of six licences in the Sultanate of Oman and the United Arab Emirates (UAE). The company has some production. This comes from the Burkha gas condensate field in Block 8, offshore Oman. The field has been producing since 1994 and has proved plus probable remaining reserves of 54 billion cubic feet of gas with 3.7 million barrels of condensate. In 2005 Burkha’s gross production averaged more than 2,000 bpd of condensate and 30 million cf/d. This fell a bit in 2006 when output was 1,726 bpd and 25 million cubic feet of gas per day. Indago has 40 per cent of this production.

Then late in 2006 the company enjoyed a success with the West Burkha development well, also on Block 8. West Burkha successfully tested significant flows of over 4,000 bpd from the secondary target (Thamama). The original well bore, West Burkha-2, which penetrated the Shuaiba and Kharaib reservoir last August, was sidetracked after the drill string parted while drilling. The well, renamed WB-2A, was drilled to a depth of 4,529 metres. After various tests, the choke was opened to 50/64 inches and the flow rate increased to 4,392 bpd of 42 degree API oil and 1.4 million cubic feet of gas a day (cf/d).

Both the primary reservoir (Mishrif Mauddud) and the secondary target (Thamama) were encountered high to prognosis, resulting in a longer than expected hydrocarbon bearing interval in the Thamama.

But the point was the primary zone, the Mishrif Mauddud, though penetrated, was not fully examined. Flow rates of up to 13.6 million cf/d and 2,910 barrels of condensate were obtained in the Mishrif which lies above the Thamama, in the 1976 discovery well. Indago and its partners Eagle Energy (10 per cent) and LG International (50 per cent) planned to revist this zone.

This they did with pleasing results The final results early this year in the West Burkha-2A demonstrated a flow rate from the Mishrif Mauddud zone of approximately 25 million cubic feet a day and 8,364 bpd. These flow rates were additional to those reported for the Thamama, so the combined rate from these two separate zones was 12,756 bpd and 26.3 million cubic feet of gas a day.

These are substantial flows by any standard and will in due course move Indago closer to significant production. However, the company has announced it wants to be a leading producer of gas condensate and LPG in Oman and the UAE. It has therefore announced that it has started drilling the Al Jariya-1 exploration well on the Jebel Hafit prospect, in Block 31 onshore the Sultanate of Oman (Indago 100 per cent). The well, drilling to approximately 5,900 metres, is targeting the Naith and Thamama formations which are proven producers of both gas and condensate in analogue structures such as Shams (operated by PTTEP), Saj’aa (BP) and Margham (DME). Al Jariya-1 is targeting a mean gas and condensate reserve base of approximately 1 billion boe and is expected to take between 125 and 160 days to drill.

You can understand what Indago Finance Director Martin Groak means when he says: “This is the big one.” If the well comes in, the discovery would be company making. But it may not be all there is to come. The company has said that as part of its strategy to create further, high impact drilling opportunities, Indago has been acquiring 2D seismic over its leads in Blocks 31 and 47 onshore Oman. So far Indago has shot around 100 km of new seismic with encouraging results, it said.

Meanwhile Indago’s Exploration Director John Hurst said: “ Jebel Hafit is a high impact exploration prospect and it has taken five years from originally identifying the potential and defining the prospect, to finally start drilling. It is incredibly exciting to be at this point as prospects with such large upside potential are rare”. Indeed, this is one to watch.

PapalPower,


I see that Valentine on the ADVFN board is claiming that drilling on the Jebel Hafit prospect is going better than expected and that the amount of condensate could be bigger. He or she even refers to an announcement soon!

Have you heard anything to back this up?

Regards.

MSF

Interesting post and link from AFN. Rumours are doing the rounds that an operations update is due soon, which will give a much upgraded resource value for West Bukha-2. Rumours also are that the AJ drill is going well, and might, might that is, be complete in around 4 months. DYOR !!



"Rodspotty - 6 Mar'07 - 23:04 - 375 of 375


Interesting link...

http://www.heritageoilcorp.com/oman.htm

Quote from above link...''Gross project reserves for West Bukha were estimated at 320 bcf of gas and 33 MMBOE of condensate and LPG prior to the drilling of West Bukha-2, but a reserves up-grade is expected''

Rodders"

******************************************************************

MSF, certainly the rumours on a reserve upgrade update coming out for West Bukha-2 is a hot one.

Just a few passing rumours on the speed of the drill, but these things normally hit troubles somewhere along the line, its the nature of O&G, so I would say stick with a 4 to 5 month timeline, unless the company announces differently.

Asset Summary:

Oman Block 8 (40% Indago)

Bukha: Producing 1,835 bopd and 27 MMscf/d gas

West Bukha: Tested flowrates of 12,750 bopd and 26 MMscf/d. Phase I of the development has commenced and comprises design, fabrication and installation of the wellhead platform and pipeline with a tie into the Bukha facilities. Due to enter production 2008. (Gross project reserves for West Bukha were estimated at 320 bcf of gas and 33 MMBOE of condensate and LPG prior to the drilling of West Bukha-2, but a reserves up-grade is expected)


Oman Block 17 (40% Indago)
Tibat: Untested.

Oman Block 30 (100% Indago)
Al Sahwa, Hafar, Hamrat Duru, Nadir: tested 2-15 MMscf/d of gas

Oman Block 31 (100% Indago)
Jebel Hafit: estimated at 1 billion boe. Al-Jariyal-1 presently being drilled -due to complete in 160 days (9 July). Test Q3. New 2D seismic results "encouraging".

Oman Block 47 (100% Indago)
Hawamel-1: Estimated 61 million boe. Gas shows during drilling. Currently suspended pending horizontal wellbore testing (unlikely that standard testing procedures would achieve a commercial flowrate). New 2D seismic results "encouraging"

Oman Block 43a (100% Indago)
Assessing leads using 2d seismic

United Arab Emirates RAK-B (40% Indago)
Assessing commercial potential using 3d seismic

United Arab Emirates Saleh (40% Indago)
Production of 100 bopd and small volumes of gas. Assessing remaining potential of the field using 3d seismic.


Company is profitable ($1.75million in 6 months to 30 June) and has $72million in the bank to fund developments.

Well, sale of some of the assets, for cash, in excess of the current market cap.........I would guess its West Bukha.......jolly good........if its West Bukha then it will be a big lump of cash, and also their present cash in the bank is not needed to be used to develop West Buhka....they are going to be sat on a lot of money, and perhaps still some big potential plays.


Indago Petroleum Potential Transaction

RNS Number:5023S
Indago Petroleum Limited
07 March 2007

Indago Petroleum Limited
("Indago" or the "Company")

Potential transaction

Indago, the oil and gas exploration and production company, announces that it has received a proposal which may lead to the sale of a material proportion of the Company's assets for a cash consideration in excess of the current market capitalisation of the Company. Indago's Directors would like to stress that there can be no certainty that a transaction will be forthcoming.

A further announcement will be made as and when appropriate.

Papal,

This is really bubbling along nicely. I suspect that the offer is at the least attractive but IPL are desirable enough to hold out for one that is drop dead gorgeous!


MSF

It is moving along well MSF !


A good post on AFN, and I would add, from the asset portfolio that the "material" part refers, IMV, to the production assets in the most. The offer most likely refers only to Blocks 8 and 17 in Oman, however, potentially someone could be taking those plus the others.

IMV the offer price for "some of the assets" refers to the market cap at RNS release, however, lets take it as market open anyway. The calcs are quick and dirty "back of the fag packet" but shows were the land lies................




"tonudiki - 7 Mar'07 - 15:12 - 433 of 471

Given

1) that yesterdays closing market cap was £124 million with 266.6m shares in issue. (For the purposes of todays announcement I'm assuming they are working on yesterdays market cap rather than today's noon value)

2) there is about £39 million in the bank

3) The proposal offer is for a material part of IPL's assets for more than yesterdays market cap..let's be conservative and say £130 million

4) 130+39 million= 169 million divided by 266.6m shares = 63.4p per share cash PLUS whatever assets are retained by IPL.

A share purchase at 63p or less is a bargain if the asset sale deal goes through at £130 million as you get the remaining projects/assets for free.

Suppose the proposal is for a purchase of £150 million or £180 million? We don't actually know how much in excess of the yesterdays market cap we are talking about do we?

http://news.independent.co.uk/business/ana...icle2338474.ece


On AIM, Indago Petroleum pleased investors by announcing it is in negotiations to sell a "material" slice of its assets for more than yesterday's opening market capitalisation. The word is that the assets will sell for 70p per share, with the remainder of the company to go on the block at a later date. The shares surged 14.25p to 60.75p.

Well, valentine has been near spot on with posts of late, so I am hoping this one is as well :

"valentine - 8 Mar'07 - 09:27 - 499 of 499

I think JH is very commercial and I further suggest that drilling is further ahead than expected at this stage. I believe seismics indicated a thicker shell above the dome than actually is there and means the remainder is more capacity quite simply than was projected. A considerable amount of that chamber is condensate which has got a few people more than a little interested. Previously it was gas targeted at local regional consumption. Now they have an internationally saleable commodity! OIL!"

Two bits of news, firstly big name broker and adviser appointed, and also it appears RAK are the ones with the offer, trying to beef up their pre-IPO assets.

Indago Petroleum Limited
09 March 2007

Indago Petroleum Limited
(the 'Company' or 'Indago')

Appointment of financial adviser and corporate broker

The Board of Indago Petroleum Limited (the 'Company' or 'Indago') is pleased to announce the appointment of JPMorgan Cazenove Limited as the Company's financial adviser and corporate broker with immediate effect.

Nabarro Wells & Co. Limited remains the nominated adviser to the Company.

*********************************************

http://www.energyintel.com/PublicationHome...blication_id=31

Rak Petroleum Bids For Dubai's Indago

Rak Petroleum of ....................

So RAK have a present fighting fund, fully paid up, of 3 Billion AED, and that will go up to 5 Billion AED when they go public.

3 Billion AED is 423 million pounds.

5 Billion AED is 705 million pounds.


So, they certainly are not short of cash.


http://www.emiratesinternational.net/index...&newsId=280

http://www.ameinfo.com/97708.html


********************************************************

I have had a line of thinking that perhaps RAK might want to buy all of IPL, and gain the London listing in the process (we know they are looking at London to IPO, but I do not know Full or Aim)

Now, to go with this line of thinking, we have seen a lot of big buys going through of late.

We have seen an announcement for "purchase of some assets" and we have seen the big buying continue.

What is the difference between buying a "material part of the assets" and buying "the company"..........well that would be EPT disclosures which would give the game away.

I suggest therefore that the "material part" purchase might be purely a guise by RAK, and in fact they may want the whole company, but want to be able to purchase as much as they can from the market ahead of declaring a fully blown takeover bid.

If the 70p bid for "some assets" goes ahead we work out there will be cash in the bank of 81p + all the leftover assets. It would therefore make sense for RAK to as much as possible over a period of time up to 81p.....and then announce a change from "material part" to "whole company".

Perhaps, its a different way of looking at it.

http://www.oilbarrel.com/feature/article.h...ed=oilbarrel_en

11.03.2007

Little Fish In A Big Pond: AIM Juniors Finding Their Feet In The Middle East

".............AIM-listed Indago Petroleum ( which may now be in play in some form or other) is unusual in a sense in that it is purely focused on the Middle East with half a dozen licences in Oman and the United Arab Emirates (UAE). The assets include Bukha, a producing gas condensate field, and West Bukha, an approved gas condensate development, where a successful testing programme has recently been completed. Both fields are located offshore Oman. The West Bukha 2A well demonstrated a combined flow rate from two test zones of approximately 12,750 bopd and 26 MMscf/d. Peter Sadler, Indago’s chief executive, says the test results underline the commercial viability of the project and bring future production a step closer. Indago is the operator of the Block 8 project with a 40 per cent ownership.

The company also recently launched into a three well exploratory drilling programme across three separate blocks in Oman. The first well, Hawamel-1A, onshore Block 47, encountered its target formations and is likely to be gas bearing, Indago said in January, though the structure appears complicated. The latest well, Al Jariya-1, is targeting the Jebel Hafit prospect onshore Block 31, which Indago says has a mean gas and condensate reserve base of up to 1 billion boe. It is the culmination of a five year journey for the company, from originally identifying the potential and defining the prospect. John Hurst, exploration director says: “It is incredibly exciting to be at this point, as prospects with such large upside potential are rare.” The well could take up to four months to drill. A third well, Zad-1, later this year will target the Adam prospect in Block 47. It is a defining time for Indago which holds 100 per cent in each of these wells, with any major discovery likely to unlock big things........... "

Here we go

http://www.investegate.co.uk/Article.aspx?...03140701399145S


Indago Petroleum Limited
14 March 2007

Proposed Disposal of 100 per cent. of the Group's Production and Development Assets and of approximately 50 per cent. of the Group's Exploration Assets to RAK Petroleum Public Company Limited ('RAK Petroleum') for a price of £194,235,267

Return of Capital of 60 pence per Ordinary Share

1 for 5 Share Consolidation of Ordinary Shares

........................

http://www.oilbarrel.com/email_index.html?...ed=oilbarrel_en

15.03.2007

Indago Petroleum Returns Cash To Shareholders As It Regroups As A Pure Exploration Play

It’s no secret that a fair number of E&Ps come to market with a plan to move their starter assets through the value chain and then engineer a timely, profitable sale. It’s a plan, however, that is harder to execute than first imagined given its reliance on (a) success with the drillbit and (b) other companies finding those reserves deserving of a suitable premium.

Yet it seems Indago Petroleum, which came to London’s Alternative Investment Market in December 2005, has succeeded in negotiating a sale of the bulk of its assets to RAK Petroleum, a UAE-based company established in late 2005, for £194 million in cash. Shares in the company jumped 6.5 per cent in morning trading to stand at 69.5 pence as investors welcomed news of the sale.

RAK’s offer works out at 72.5 pence per share, a 55.9 per cent premium on Indago’s share price of last week, when the company announced it had received a proposal to buy its production and development assets. This good news was enhanced by the fact that Indago, in an unusual move for an E&P, plans to return around £160 million of the proceeds to shareholders by way of special dividend, to be paid on April 18.

The sale includes all of Indago’s production and development assets, which consist of Blocks 8 and 30 in Oman, and 50 per cent of its exploration portfolio (Blocks 31, 43A and 47 onshore Oman). Indago’s chief executive Peter Sadler and exploration director John Hurst will transfer to RAK Petroleum, with chief financial officer Martin Groak taking on the role of interim CEO of the slimmed down Indago Petroleum.

Indago and RAK will partner up to jointly explore the exploration assets and will together look for additional exploration opportunities in the United Arab Emirates and Oman. Indago will have cash balances of £31 million to build its pure exploration business. Chairman Tim Eggar said this arrangement meant shareholders would “continue to be invested in the same exploration programme as before the disposal, with the same operating team, and have the added advantage of a well connected and well funded partner”.

The sale means the AIM company is saying goodbye to mature producing assets and a collection of development properties, which offered the potential for future cash flows but also future cash calls to bring those reserves onstream. These include Indago’s 40 per cent interest in Block 8 offshore Oman, home to the producing Bukha gas-condensate field, where output is in natural decline, and the West Bukha development, due onstream next year. It is also losing its 100 per cent ownership of a collection of fields in Block 30, which are reckoned to hold around 300 bcf of gas, and its 40 per cent stakes in the producing but swift depleting Saleh field and the undeveloped RAK B field in the UAE.

The new look Indago Petroleum will be a pure exploration company. It is fitting, therefore, that it has a number of wells lined up for the coming months, including results from the Al Jariya-1 well on the Jebel Hafit prospect in Block 31 onshore Oman. This well is targeting a large gas and condensate structure that could hold the equivalent of 1 billion barrels of oil equivalent and lies within 25 km of a major gas pipeline. This has the potential to deliver an immediate “big bang” for the explorer - if successful.

The company will also participate in the drilling of the Adam prospect in Block 47 onshore Oman. This well, named Zad, will be drilled in the third quarter and will test Cambrian age sandstones at a depth of 4,200 metres, which could hold 655 bcf of gas and 35 million barrels of condensate. Depending on the drilling results, this could be followed up by possible appraisal wells. There are also plans to acquire seismic over additional prospects in Blocks 43A and 47 in order to generate further prospects for drilling in 2008 and 2009.

A good presentation is now available on the deal and the future of IPL :

http://www.indagopetroleum.com/images/maps...ation_final.pdf

Zooming up now.........as the speculative money ahead of the AJ-1 drill result comes in.

THE INSIDE LEG - Indago Petroleum 30th April 2007

Posted by: The Insider, in Market whispers

Talk doing the rounds of a very bullish broker circular that suggests the shares could be worth £10-£15 based on what is rumoured to be under its Oman fields. We will get a better idea in June. The downside if they come dry is a valuation of 40p.
One house in particular seems to be piling clients into the stock on the back of the note.
Looking at the chart, the stock has almost doubled in value in the last six weeks.

Been picking up bits and bobs at 105.5p of late, finished yesterday and the timing looks good.

Any dips below 105.5p and I'll have a few more. My speculative holding is around 10K now, which means it will turn into 4K on failure of JH-1, or 100K on success.

Even if it turns into 4K, there are two more fully funded drills to come, which between them could turn that 4K back into 50K, or turn the 100K into 150K, or turn the 4K into 0K.

Thats the fun of a speculative punt Roll on August. IMO, this is the best speculative punt available in the coming months, but buy real shares, not margin (simply as the downside to 40p on JH-1 failure could later become upside back to 500p with the other 2 drills)


(JH-1 is worth 1000p if good, the othe two drills are worth 500p if good. Total upside potential is 1500p, however, should JH-1 fail then it would fall back to 40p, before the other two drills could give up to 500p upside in total between them).

IPL made me money first time around, and my 10K holding now contains some free riding shares after top slicing.

DYOR !!

I've been thinking of buying these for a while but never have. I am thinking of taking the plunge as the upside is potentially massive and worth the risk. Papalpower you have a pretty sizable holding which if things work out as hoped will yield great results for you.

April 2007 Interview with Martin Groak

http://www.wallst.net/audio/audio.asp?tick...IPL&id=3300

****************************************************

I have also put in a web archive folder up with information in.

This contains broker updates etc....

http://www.esnips.com/web/IndagoInformation


*******************************************

My view :

AJ-1 drill is ongoing, testing is expected in August 2007. This drill represents unrisked upside potential of 1000p a share. The other two fully funded drills to come later represent up to 400p a share potential upside. This is a high risk punt, make no mistake, however, the prospects (AJ-1 is relatively low risk on an industry scale) are massive, the upside is massive and there is no other play with this potential on AIM imo.I strongly suggest you read the broker notes in the archive folder link in this header, and listen to the Martin Groak interview from April 2007.

*** Note, I do hold IPL, however its made me significant profits already from the takeover news and rise, and my holding is now mostly "free". Therefore, I am holding all the way through regardless of results of drills. I would strongly suggest against holding margin positions like spread bets. The shear scale of upside will mean that this share will undergo, imv, big movements down and up ahead of news to shake margin positions out. Its far better, if you are going to buy, to buy the real shares and hold them. The advantage is that if AJ-1 well fails and the price falls, there is still 400p of unrisked upside from the other two drills, so all is not lost on AJ-1 failure alone, should that happen.Its high risk, so be careful and always DYOR !!


Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: The target is estimated at 1 billion boe on the Omani side (with another 1 billion boe on the Abu Dhabi side). Al-Jariya-1 presently being drilled. Completion and testing in Q3. Classed as “low risk”.

Oman Block 43a (50% Indago, 50% RAK Petroleum)
Adam prospect (Zad well to be drilled after Al Jariya -1 well is complete and the rig is released). The estimated target is 140 million boe recoverable

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Izz prospect (Hawamel well drilled end 2006 with gas interpreted as being in place, but in a tight formation. IPL are contemplating a horizontal section to produce the well at a later date). The target is estimated at 60 million boe recoverable.

This link gives a good summary, as well as the interview. The summary details make a good read :


http://www.wallst.net/superstocks/supersto...?ticker=aim:ipl


.

Cheers for posting these, they will make interesting reading. Your point about DYOR is always a good one and thats pretty much the reason I haven't actually invested in any new holdings since last July. The only thing I have done is take profits on previous buys. Until I am happy I am informed I wont buy and as a result of limited time over the past year this has meant no buying!

Always the best way, if you have not time to DYOR - then its not "safe" to buy, as you are not confident.


*******************************************************************


http://www.pipelinedubai.com/press/2007/pr_07_0313.html

Indago upbeat Posted: 11 June 2007

Dubai-based, London-list Indago Petroleum is upbeat about the prospects of its oil exploration projects, particularly in Oman , after unveiling narrowing losses in 2006.

The group's annual pre-tax loss eased to $3.5 million from $16.5 million after turnover jumped to $14 million from $3.8 million. Production averaged 1,833 barrel per day, over 12% ahead of budget.

Indago became a pure exploration business after it sold the oil production and development unit, plus half of the exploration assets, to RAK Petroleum for over 194 million pounds sterling in March.

The deal allowed Indago to pay 160 million pounds in special dividends and maintain a cash balance of $55 million - more than enough to finance the company's exploration programme over the next two years.



The Jebel Hafit gas prospect in Oman is the potential moneyspinner. The field, in which Indago owns a 50% stake, is believed to be holding over one billion barrels of oil equivalent.

The well’s target depth is 5,900 metres. “It is a very deep well. We should be reaching the reservoir on July 20, said interim chief executive Martin Groak. “Additional drilling will take another three weeks. August is the likely time we will be testing the well.”

One theory I am toying with is that if JH-1 strikes, then RAK (the 50% partner) will buy out the other 50% held by IPL for around 1000p a share equivalent. This will leave IPL with tonnes of cash and looking for new ventures. When RAK purchased all the production assets and 50% of the explorations assets they said then "buying 50% with a view to purchasing more later".

I would expect the JH-1 well to be nearing the target zone around late July, we might find out more from the AGM statement.


http://www.zawya.com/Story.cfm/sidZAWYA200...l%20&%20Gas


RAK Petroleum ready to invest $400m

08 July 2007

Dubai: UAE-based energy firm RAK PetroleumRAK Petroleum said it has $400 million ready for acquisitions and is hunting for oil and gas assets in the Arab region and neighbouring countries.

The company, owned by UAE and Saudi investors, could not spend that money when its deal for acquiring Gulf Keystone Petro-leum Limited in April failed to materialise.

"With that deal falling away, we have started looking at new ones. We are looking at two transactions at the moment," said Peter Sadler, RAK PetroleumRAK Petroleum's new chief executive officer.

The company can potentially spend much more than $400 million if it found producing oil or gas fields, he told Gulf News in an interview.

"We can access more money through borrowings. We are looking for acquisitions between $300 million and $800 million over the next 12 months," said Sadler, who joined RAK from Indago Petroleum Limited, which was purchased by the UAE firm in March for $370 million.

Sadler said the company's focus will remain on finding energy businesses.

"We have an upstream focus, predominantly gas if it is in the Arab world. Gas requires a bit more commercial and political knowledge of the region. With oil you can move a little bit further from your borders," Sadler said.

Iraq, Pakistan, Syria, Egypt, Algeria, Yemen and the Caspian region are among the areas of interest to RAK.

News today, a little disappointing in terms of at least another 3 months before results, but the positive is it will not effect their fully funded 3 well drilling campaign, and also the geologic findings are as prognosis pre-drill.

I've added a few more on the fall back. .

The time is getting near now, with Peter Saddler saying we will know something by end of Q3, and in fact, if the drilling went well, they could be into the reservoir zone first week of September, it it went to "nominal" target, then they will be into the reservoir zone mid Sept.


This is my post today on TMF, for a CQ, that being IPL from 59.5p mid price.


"This is a re-entry, after drilling problems caused a delay to the programme, which caused a fall and the stop loss being hit. The present market is confused and overlooking IPL imv, however, I believe the potential is very much still on, and a lot closer to fruition than people think.

According to a 19th July interview with Peter Saddler (CEO of RAK) the drilling would recommence latest 21st July.

The target was between 40 to 50 days to drill to potential reservoir zome, and between 30 to 40 days to drill through the reservoir.

This means best case 70 days to completion to TD (40 days to having first info coming back from the potential reservoir zone).

Nominal is 90 days to completion (50 days to having first info back from the potential reservoir).

Peter Saddler said that they should know something by at least end of Septmeber latest (the inclination being potentially sooner).

From the schedule and utilsing 21st of July as drilling starting again :

All being well they will be into the reservoir first week to mid September.

The risk is further drilling problems will further delay the drill, or cause it to be abandoned, however Saddler was confident that the problems in the initial stage do not take away anything from being able to complete the drill. He is ex-Schlumberger, so he should have as good a feel as anyone.

The fall from 105p down has been on very minimal volume ( http://bigcharts.marketwatch.com/charts/bi...&mocktick=1 ) and given that and the recent market wobbles, I am sure it will move back up very quickly once a few buyers come back.





Indago Petroleum

EPIC : IPL

Current mid price : 59.5p

Target price: Open ended for the duration due to the potential.

Potential unrisked price on AJ-1 drill success – over 1000p a share

Downside potential on AJ-1 failure – fall to around 35p a share imv (however have two further fully funded drills in place with upside potential of anything up to 400p a share)

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NMS : 2000
Can buy/sell over NMS normally with no problem.

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Reason for 20% (or lots more) gain:

Recently sold all their production assets to RAK Petroleum, returned 60p a share to investors and retained lots of cash and some exploration licenses, jointly held now 50/50 with RAK. Indago are not the operator.
Their ongoing drill is also their biggest, it's a very deep well targeting a 2 Billion BOE reservoir which sits half on the Omani side and half on the Ahu Dhabi side, therefore the target is 1 Billion potential for IPL/RAK or therefore 500 million for IPL.
Unrisked upside of this well is 1000p (yes a tenner per share). Downside on failure would see around a 35p a share price, based on the 2 remaining drills to come (fully funded, cash in bank and assets)


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Mcap: £31.73m

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Company website: http://www.indagopetroleum.com/

My esnips web folder of information is located at : http://www.esnips.com/web/IndagoInformation

Interview with Martin Groak April 2007 : http://www.wallst.net/audio/audio.asp?tick...IPL&id=3300

It's a higher risk punt in all effect, but I know of no share that has the upside potential on a single event to potentially 10 times the current SP on success, but also offer some limit to the downside (as potentially their other 2 planned drills could be worth up to 400p a share later so the initial sell off on any bad news could potentially be recovered with a decent profit with later events).

Should easily see a 20% gain in the build up to results, could potentially give a 1000% gain if the AJ-1 drill comes in good, or an initial 50% loss (at the present SP if not.)


Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: The target is estimated at 1 billion boe on the Omani side (with another 1 billion boe on the Abu Dhabi side). Al-Jariya-1 presently being drilled. Completion and testing in Q3. Classed as “low risk” on an industry scale of drilling prospects (this still means high risk to me and you)

Oman Block 43a (50% Indago, 50% RAK Petroleum)
Adam prospect (Zad well to be drilled after Al Jariya -1 well is complete and the rig is released). The estimated target is 140 million boe recoverable

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Izz prospect (Hawamel well drilled end 2006 with gas interpreted as being in place, but in a tight formation. IPL are contemplating a horizontal section to produce the well at a later date). The target is estimated at 60 million boe recoverable.

Further detail at : http://www.indagopetroleum.com/overview.asp


************* Note, I do hold IPL, however its made me significant profits already from the takeover news and rise, and my holding is now mostly "free". Therefore, I am holding all the way through regardless of results of drills. I would strongly suggest against holding margin positions like spread bets. The massive scale of the upside will mean that this share will undergo, imv, big movements down and up ahead of news to shake margin positions out. Its far better, if you are going to buy, to buy the real shares and hold them. The advantage is that if AJ-1 well fails and the price falls, there is still up to 400p of unrisked upside from the other two drills, so all is not lost on AJ-1 failure alone, should that happen.Its high risk, so be careful and always DYOR !!

Been reported wrong in a few places, so to clarify ;

Shares in Issue is now : 53,333,311

At 56.5p mid price the market cap is just 30.13m now.

http://www.indagopetroleum.com/investinfo.asp


L2 on the up today as some buyers come in, all is blue so far, and now 2 v 1 @55/58

Interest is picking up now.

On Line Limits getting stronger now :

BUY 1.5K at 68.76p

SELL 15K @ 66.2p

Good strong rise today - are we expecting some news very soon?

News could come any time now, be it tomorrow, next week or in 6 weeks time.

We will also not know if its good or bad...........so a case of "speculative punt". The upside is potentially 1000p a share. The downside is likely a fall to 30p before the next drill (Zad-1) which follows straight on when this present ongoing drill is complete.

The risk/reward is good for me though...........fingers and toes crossed

Well, some buying interest today.

We should know something by the end of this month latest, as interims are due on or before 30th Sept, so that will be the latest date of any update.

Interims out today, all appears well, if delayed somewhat. Now expecting to hit target zone late in Q4. Encouraging given that mean potential reserves are worth 1000p should we get to them and they are there High risk and massive potential reward.......ideal for gamblers.....like me

This little extract from the interims :

"Chairman's report

Introduction

Since I last updated you at the time of our Preliminary results we have made just one operational announcement on progress at the Al Jariya-1 well on the Jebel Hafit prospect, as the Company's primary focus has been this well. At that time, an 11 3/4' liner had been set between 2,000 and 2,600 metres in order to stabilize the well, which was being adversely affected by tectonic movements.
The decision to do so appears to have been vindicated, as progress, although slow, has been steady since then. A consequence of inserting the liner has been the need for a two-stage drilling process, whereby an 8 1/2' pilot hole is
drilled initially, followed by a reaming operation, opening out the hole to 12 1/4'. This maintains the operational capability to set 9 5/8' casing before drilling into the reservoir in 8 1/2' hole. This would ultimately permit a
conventional testing programme to be run in the event that hydrocarbons are encountered. However, this two-stage drilling operation has led, inevitably, to slower progress. The operator has advised a further uplift in cost (Indago share expected to be circa $2 million) since our last announcement. The additional cost has been fully recognised in our forecasts and we are fully funded for our
foreseeable programme.

Lets estimate they continue at an average of 17m a day.

We should expect them to enter the first (upper) reservoir in late Q4.

They should complete to TD around early Feb 2008, and finish testing in late Feb or early March 2008.

Based on that, I think people should have a fairly good guesstimate of when to expect news and action.

I would say the past few days director buying would mean they are fairly confident they will reach TD now, and so they, like us, feel its worth a little flutter now, given what is massive potential upside on success.

10K punt = possibly 100K back with mean success on JH-1.......or if JH-1 fails then that 10K punt could be worth up to 25K to 30K based on the next two drills.

Not bad odds at all.

Anyway, nice to see them all have a little dabble and buy some shares

75K buy at mid price (as was at trade time, its in the sell column due to 1 hour delayed reporting), appears to have cleared up a lump of overhang.

Would expect the buying interest to come in more and more now. IPL are potentially 8 weeks or maybe a little more or indeed less, away from entering the first potential reservoir.

1000p a share potential upside on this well (on median estimates) and backed up by 140p a share potential (median estimates) on the next drill, and 60p a share potential (median estimates) on the third well of the fully funded three well campaign - quite an exciting speculative play for those who like risk/reward scenario's.

Although i'm not holding I would think there will be some news within the next few weeks? From what I have seen looking at my watchlist there has been some good buying going on even if the price has dropped slightly. Will be interesting to see how this one pans out.

Down 8% at the moment. Still solid buying going on.