Web Site : http://www.indagopetroleum.com

Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: The target is estimated at 1 billion boe RECOVERABLE on the Omani side (with another 1 billion boe on the Abu Dhabi side).

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Wa'bah. The technical evaluation is ongoing with new seismic having been obtained during the past year.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Adam prospect . 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.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Dham, Sadood, Kabshat. In 2007 the acquisition of 362 km of 2D seismic in Block 47 was completed. This survey was focused on the Dham, Sadood and Kabshat leads. The technical evaluation is in progress and may result in the promotion of one or more of these leads to drillable status.

Oman Block 43a (50% Indago, 50% RAK Petroleum)
A seismic acquisition campaign was concluded during 2007. This encompassed the acquisition of 225 km of 2D seismic in the Block, including over the Kahal lead.



Thread started 23/10/2008 @ 11p

Update on insurance claim

Indago Petroleum Limited ('Indago' or the 'Company') provides an update on the ongoing insurance claim in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February of this year and is pleased to report steady progress.

Jebel Hafit is in Block 31, onshore the Sultanate of Oman and Indago holds an approximate 50% interest in the Block through a wholly-owned subsidiary. RAK Petroleum PCL, the operator of the Block, owns the balance of the interest in the joint venture (the 'JV').

Underwriters have approved two interim payments with respect to reimbursement of the costs of controlling the well totalling USD 16 million (Indago's share USD 8 million). Most of that money, less the policy excess of USD 250,000 (Indago share USD 125,000), has already been remitted to the JV and the balance is due shortly.

The amount approved to date represents just over two-thirds of the claim relating to the well-control costs. The JV is confident that further progress will be made before the year-end.

In relation to its operations and corporate activities, the Company has no other developments to report at this time.

David Bremner, CEO, commented:

'The steady progress being made on this important matter is very encouraging. This is bolstering Indago's cash reserves at a time when access to cash is particularly challenging in our sector.'

Not another loser PP?

not a great news in terms of what is the plan for the future....

Buying volume has been increasing over the last few trading days.........news soon ?

Comment in EK's diary the other day :

"And, amazingly, Indago Petroleum (IPL) sits at 12p offer. I remind the patient that, arguably, there is 30p a share cash or, if you are really mean, 25p and no debt. Cor Blimey. This is attributable to the total breakdown in trust. Mind you, when you have got a Home Secretary who feels she can filch 116,000, be found out and then say nothing, I am not entirely surprised."

Must work out at 50p a share cash they have......


http://www.investegate.co.uk/Article.aspx?id=200902230700127080N

RNS Number : 7080N
Indago Petroleum Limited
23 February 2009

23 February 2009

INDAGO PETROLEUM LIMITED

Insurance Settlement

Indago Petroleum Limited ('Indago' or the 'Company') announces that a settlement has been reached on its insurance claim in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February of 2008.

Jebel Hafit is located in Block 31, onshore the Sultanate of Oman and Indago holds an approximate 50% interest in the Block through a wholly-owned subsidiary. RAK Petroleum Oman Limited ('RAK'), the operator of the Block, owns the balance of the interest in the joint venture (the 'JV').

The JV has accepted an offer by underwriters of a full and final net cash settlement incorporating a payment in lieu of being reimbursed for re-drilling the Al Jariya well, plus reimbursement of the final tranche of costs incurred by the JV in controlling the well at the time of the blowout. (the 'Settlement').

Once the Company has received its share of the Settlement, it is projected to have cash balances in the region of $38 million. It is anticipated that all the Settlement monies will have been received by the end of March 2009.

Technical evaluation of the Jebel Hafit structure is ongoing. As previously announced, the latest analyses have concluded that the upper reservoir target (the Natih) was penetrated and was demonstrated to contain water. The lower reservoir target (the Shuaiba), which has not been penetrated, was estimated in the pre-drill analysis to contain around 80% of the prospective resources.

Discussions are being progressed with RAK and Oman's Ministry of Oil and Gas in relation to the way forward on Jebel Hafit and Block 31 generally. On other operational and corporate activities, the Company has no developments to report at this time.

David Bremner, CEO, commented:

'I am very pleased that the JV has been able to reach this settlement with the insurers. The Board concluded that this outcome is in the best interests of the shareholders because it gives the Company both greater financial certainty and added flexibility in terms of strategic alternatives. It also allows the Jebel Hafit project to be progressed in a measured fashion, rather than according to a timetable set by the terms of the insurance policy'.

Rocketed this am on news of an insurence payment, which it seems gives the company some thing in the region of 47/48p?
Trading at 20p, looks a gift horse and with an asset which while high risk could
be very special if successful. Who knows a Take Over Target??
cyril

cyril,

Near 50p a share cash, and a few assets. And as they own 50% of the JH biggie, they could eaasily farm down to say 25% for a free ride on the next drill.

Preserves their cash and exposes them to potential upside of around 400p from just one of their assets.

Just goes to show how crazy the AIM market is.

With near 50p a share cash, very low overheads and 50% of the all the leads in the header (including one potentially worth over 1000p a share) and yet its just above 20p.

AIM market is dead, and it deserves to be so, they floated too much crap IMO and diluted the good stuff down too far.

Now all they need to do is get their interests in these wells on a carried basis and the cash is free for new prospects.

Worth a read for information :

http://boards.fool.co.uk/Message.asp?mid=11453328&sort=whole


.

The Times
February 24th 2009
Indago Petroleum gets boost of energy
Smaller companies
Peter Stiff

Shares in Indago Petroleum more than doubled in value yesterday after the AIM-listed energy explorer struck not oil or gas but cash.

After months of uncertainty, the group said that it had agreed a full and final settlement on an insurance claim in relation to an underground blow-out suffered at its al-Jariya well in Oman about a year ago, covering drilling and other costs.

Once it receives the money, which is expected by the end of March, Indago said that it would have projected cash balances of $38 million (26 million), far more than its stock market value. David Bremner, the chief executive, said that the outcome gave the group greater financial certainty and added flexibility to pursue strategic alternatives. Ambrian, which has a speculative buy rating on the stock, said that the payout removed a significant uncertainty and any risk that it may have to redrill the well this year. The shares rose 14p to 26p.


Daily Mail -

On AIM, Indago Petroleum leapt 14p to 26p after settling its Jebel Hafit joint venture insurance claim in Oman.
The claim relates to a blowout at the Al Jariya well a year ago. Its share of the payout will give it a cash balance of $38million (26million).


The Guardian -

Finally, Aim-listed Indago Petroleum jumped 14p to 26.5p. The company has settled an insurance claim relating to an underground blowout at the Al Jariya well on the Jebel Hafit prospect a year ago, which should boost its cash balances to $38m. Its market capitalisation - even after the increase in its share price - is less than $20m. The company's nominated advisor Ambrian said:

"There are several scenarios that could materialise over the coming months concerning the use of cash subsequent to the insurance payout. At present Indago has no firm well commitments, although we understand that scope for re-drilling the Jebel Hafit and Adam prospects is being evaluated. Importantly, the insurance settlement means that Indago is no longer under pressure from the insurers to re-drill Jebel Hafit during 2009. Shareholders retain exposure to an exploration company that has the opportunity to create a material increase in value through the deployment of funds in Oman or, possibly, elsewhere. The insurance settlement removes a significant uncertainty that had been present for some months. We retain our speculative buy recommendation."

http://www.guardian.co.uk/business/marketforceslive/2009/feb/23/3igroupbusiness-barclay


Just 3 of the write ups this am,should see some interest today?

cyril

Surprising reaction this morning; buying IPL shares is buying cash at 50p in the . The insurance deal gives IPL around 48p/share in cash. If the company can export the re-drilling costs in return for giving up a % of their half in the two re-drills that would put IPL in a very neat position to look for more exploration prospects and therefore further risk mitigation. This is now one of the better financed explorers anyway; when the actual cash is credited the sp should improve further in my view, not retrench as it seems to have done so far this morning.

Some people just have no sense, and are desperate for cash.

IPL is unlike most oilers, in that their cash is their own, and its not allocated to any projects.

So they can do with it what they want, and have no major overhead. So 50p cash is 50p cash.

You get 50p cash, an AIM listing, all the projects (and some are very big) they have...........all for under 25p.

Shows the world is crazy at the moment.

Any doubts on how the market will test your patience can be seen in this stock,
with a insurence payment which will value it at around 50p for cash alone. With 3 great assets to add on they take it down to almost silly levels, low 20's.
Still it gives a great opportunity to either top up or take a position, it surely is a no brainer, once the funds have been banked?
aimho
cyril

That will be the next driver, once the MM's know the money is the bank (end of March?) then the SP should move up to the 40's levels.

If you look at what IPL have :

Cash (coming in a few weeks) of circa 50p a share.
50% of a few high impact exploration potentials
50% of a few other exploration potentials
Lots of new seismic data.
Ownership of lots of geologic data from their drills
An Aim listing.
Very small overheads and no committed funds to spend.

Then based on other companies this should be trading around the 60p level at the very least imo.

The market here is simply saying that until the cash is received (end of March?) then they are not going to rate the SP at the "supposed" cash in bank level. Which means for anyone patient enough you simply buy now and then when the cash is confirmed you should be looking at an easy big uplift in the price as the cash becomes "recognised" as being now in the bank.

proselenes; What a great chance to increase ones wealth, lucky to get 4% for
a 2year bond (less tax) but here within 5 weeks a minimum of at least 10% and more likely in the region of 40% +(35p to 40p my guess?). With little downside?
aimho
cyril

It is cyril, its pretty much a certainty that the SP will shoot upwards as soon as the cash is confirmed as in the bank, and so you are presently buying 50p coins for just over 20p each, and the 50p coins come with some pretty good exploration acerage thrown in for free.

Interest returning, with less than 3 weeks to go.
cyril