Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: estimated at 1 billion boe. Al-Jariyal-1 presently being drilled - originally due to complete in 160 days (9 July). Drill problems and raised costs announced 11 July. 21 Sept announced that drilling had reached 3600m (target depth 5900m) and was expected to penetrate the objective reservoirs towards the end of Q4 2007. Drilling problems and delays to cost additional $2M. 2D seismic results "encouraging". 28 Dec announced that drilling progressing slower than expected and costs increased to $25M for Indago alone. Now expected to hit target depth in Feb and test by end of April 2008. 4 Feb - Announced that well had reached 5131m, then encountered high-pressure, high-temperature salt water, disabling drill string. Assessing damage.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
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". Zad - 1 on the Adam prospect will be drilled after Al-Jariya with same rig. Evaluating seismic with a view to refining the prospect inventory.

Oman Block 43a (50% Indago, 50% RAK Petroleum)
Evaluating seismic with a view to refining the prospect inventory.

Cash
$54 million at 30 June 2007

After sale of many assets to RAK Petroleum, Indago is now an exploration company.


Click to enlarge work programme


Useful Links:
Indago Portfolio Overview
Sep 06 : Investor Presentation
Sep 06 : Interview with Peter Sadler, CEO of Indago Petroleum
27 Sep 06 : Interim Results RNS
8 Nov 06 : West Bukha-2 secondary target success RNS
21 Nov 06 : West Bukha-2 primary target success RNS
5 Jan 07 : Conclusion of West Bukha testing, Hawamel-1a exploration
10 Jan 07 : Oil Barrel Article - Indago Petroleum Enjoys Further Success On Block 8 Offshore The Sultanate Of Oman In The Middle East
Feb 07 : Al-Jariyal-1 spudded and "encouraging" seismic progress
13 Feb 07 : Oil Barrel Article - Indago Petroleum Goes For A High Impact Exploration Well Onshore The Sultanate Of Oman
Mar 07 : West Bukha info from Heritage Oil
7 Mar 07 : Potential Transaction RNS
11 Mar 07 : Oil Barrel - Little Fish In A Big Pond: AIM Juniors Finding Their Feet In The Middle East
14 Mar 07 : RNS - Disposal Of Assets (special dividend, share consolidation)
15 Mar 07 : Indago Presentation On RAK Petroleum Deal
1 May 07 : RNS - Indago response to rapid share price movement, plus drilling progress update
11 July 07 : RNS - Drill problems, $8.2 million cost increase and delays to reach target depth
21 Sept 07 : RNS - Interim Results
28 Dec 07 : RNS - Slow Progress And Increased Costs At Jebel Hafit
4 Feb 08 : RNS - Jebel Hafit update - Salt water encountered, drill string stuck

Indago Petroleum Limited
14 March 2007



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


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



Indago, the oil and gas exploration and production company, announces today:

The Proposed Disposal of 100 per cent. of its Production & Development
Assets (principally consisting of Blocks 8 and 30, located off-shore and
on-shore the Sultanate of Oman respectively); and

the Proposed Disposal of approximately 50 per cent. of its Exploration
Assets (consisting of Blocks 31, 43A and 47, located on-shore the Sultanate of
Oman) to RAK Petroleum for a total consideration of 194,235,267 to be satisfied
in cash on Completion.

Indago (through several wholly owned subsidiaries) and RAK Petroleum
have entered into Joint Operating Agreements in relation to their ongoing
participation in the Exploration Assets.

The Disposal Proceeds (before transaction costs) are equivalent to
72.5 pence per Ordinary Share on a fully diluted basis, representing a 55.9 per
cent. premium to the Company's share price of 46.5 pence per share at the close
of business on 6 March 2007 (being the last business day prior to the Company's
announcement that it had received a proposal which may lead to the sale of a
material proportion of its assets for cash).

The intended Return of Capital of approximately 160 million, or 60
pence per Ordinary Share, to the Company's Shareholders by way of a Special
Dividend. The Special Dividend is expected to be paid on 18 April 2007 to
Shareholders on the register on 13 April 2007. The Return of Capital is to be
facilitated by a Court approved cancellation of the Company's share premium
account.

Indago intends to consolidate its existing share capital on the basis
of 1 (one) New Ordinary Share for every 5 (five) existing Ordinary Shares.

In addition, Indago and RAK Petroleum have entered into an area of
mutual interest agreement covering the UAE and Oman.

Peter Sadler (Chief Executive Officer) and John Hurst (Exploration
Director) intend to step down from the Board of Indago and intend to transfer,
together with the employees of the Disposal Group, to RAK Petroleum. Martin
Groak (Chief Financial Officer) will act as interim Chief Executive Officer of
Indago post Completion.

Following Completion of the Proposed Disposal Indago will:

be a pure oil and gas exploration company;

retain its geographical focus by continuing to explore opportunities
in the Sultanate of Oman and the UAE, being politically stable countries with
proven hydrocarbon reserves and an active gas market; and

continue, jointly with RAK Petroleum, to pursue its programme of
actively converting its current portfolio of leads into drillable prospects, as
well as identify and seek other suitable resource projects with which to grow
the business.

Under Rule 15 of the AIM Rules, the Proposed Disposal is deemed to constitute a
fundamental change of business of the Company and consequently requires the
prior approval of Shareholders. The Company also intends to cancel its share
premium account to allow the Return of Capital and this also requires
shareholder consent. A Circular providing details of the Proposed Disposal, the
Return of Capital and the Share Consolidation will be sent to Shareholders
today, convening an Extraordinary General Meeting of the Company, which will be
held on 3 April 2007 at 11.00 a.m at the Sheraton Hotel, Charles de Gaulle
Airport, Paris. At the meeting, resolutions will be proposed to approve the
Proposed Disposal, the cancellation of the Company's share premium account in
the context of the Return of Capital and the Share Consolidation.

Tim Eggar, Chairman of Indago, said:

'We are delighted with the substantial cash value that we are receiving and
delivering to shareholders immediately. We are also giving them the opportunity
to retain exposure to the large potential upside of Indago's attractive
Exploration Assets. Shareholders will 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.'

Abdul Aziz Al Ghurair, Chairman of RAK Petroleum, commented:

'We are delighted to have reached agreement on such a compelling and logical
acquisition for our shareholders and other stakeholders. These Indago assets in
UAE and Oman offer a mix of current reserves and exploration upside and are
hugely complimentary to RAK Petroleum's regional ambitions, relationships and
financial capacity. We are also delighted to welcome Peter Sadler and John
Hurst into the RAK Petroleum team.'


An investor presentation will be held today at 10.00a.m. at the offices of
College Hill Associates, 78 Cannon Street, London EC4N 6HH. The presentation
will also be posted on the Company's website (

www.indagopetroleum.com

) today.

:)

Do we have any idea what the value of the new shares will be & what date they will be issued? Presumably once they go ex-divi that will be the 1-5 re-issue date.

HARRYCAT - The new shares will have a value of circa 1 on cash in the bank, the exploration assetts are thrown in for free. In other words the present value on cash alone is circa 80p.

Rodders

Just added 5K @69.45p, as I see it I am buying the new Indago at 50% discount to the cash of 20p, plus I have the exploration assetts thrown in for free. DYOR

Rodders

Correction to my previous post, allowing for tax I have bought the new Indago at 15% discount to net cash.

Rodders

Acting CEO, Martin Groak said to Reuters: "Our interest in Al Jariya (located in northern Oman) could be 500 million barrels -- equivalent to about two pounds a share. That would be a company changer, and would open up a number of strategies."

He added that the cash that would be generated from such a discovery could be used to buy other firms -- both in the Middle East and elsewhere.

"There are some companies that got funding for exploration when it was easy, who are now struggling to keep their programme moving forward," he said. "Anyone with money can expect to look at the market and pick up deals."

ValueMax, good find, thanks.

Rodders

Thanks rod, but what is to stop people taking the divi & then immediately selling their current shares. That way they get the current market value (70 - 80p?) of the shares plus the 60p divi & then be in a position to buy the new shares which surely must be cheaper pro-rata.?
Apologies for being a bit thick, but on that basis this is too good to be true. There must be a downside???

Dividend payment will reduce the value of the company by the amount of the dividend.

So for instance, if the SP is 70p before dividend and the payment is 60p, the SP theoretically immediately drops to 10p.

But this is a special divi of 60p! If the value of the shares is reduced proportionally then the exploration assets are not thrown in for free!

HARRYCAT - Watch the share price and the where the big money is being placed.

Rodders

There is also the the 1 for 5 consolidation.

So should the SP be say 80p at the time of the div payment and consolidation then the SP drops to imaginary 20p, but then 1 for 5, so the new SP is 100p (1 new share being issued for 5 old shares so 5 x 20p) with 1 fifth of the present shares in issue.

Lets not forget, IPL also still have 50% of AJ-1........so there is 200p of upside there (400p divided by 2 as its now 50% RAK owned)

Yep, I understand all that, but do we know if the 1 for 5 consolidation will be at the same time as the ex-divi date (i.e. 13th Apr) ? I would rather take 60p per share + cash in my holding at 80p+, but I bet they won't allow that!
Also, having lost out slightly with the GTL consolidation, I am always a bit sceptical that we always seem to lose out a little.

I would imagine its all at the same time.

Also one should bear in mind the 200p upside is on the unconsolidated price, so when consolidated, the upside is up to 10 per share, if the 1 billion barrel reservoir is confirmed by the drill, worth the risk IMO.

Rodders

From UK-Analyst.com

Indago Petroleum (IPL) announced plans to sell its Production & Development together with around 50% of its Exploration assets to RAK Petroleum Public in a 194.24 million pounds deal. The group said it planned to return 160 million pounds to shareholders via a special dividend of 60p per share. The news came as Indago announced the appointment of chief financial officer Martin Groak as interim chief executive. The news sent the shares 5.5p higher to 70.75p.

Rodders

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1173924004&feed=oilbarrel_en

15.03.2007

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

Its 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. Its 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 Londons 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.

RAKs offer works out at 72.5 pence per share, a 55.9 per cent premium on Indagos 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 Indagos 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). Indagos 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 Indagos 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.

Still going well :)

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

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



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