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

Of course, its not going to go up 200% in a day (or to 10-15 from that circular), so plenty of potential even if you wait for the drill results.

Downside is 37p according to the note but the 10-15 upside is assuming RAK, or similar, do not jump in well before that and take them out as they did before. It is devil and deep blue based on huge optimism or massive dispair. They already have had a delay due to technical hitch. Who's to say with a 4.5ml deep drill they may not encounter another hitch or three in the next two months?
Not being a damper here. If they can get it out it will be an enormous coup.

Lovely :) Zoom Zoom Zooming up.

Yes, IPL flying. Unfortunately did sell after the special dividend but back in now eventually! Anyone having a guess where this will finish for the day..?

Certainly no delays on the buying side. Amazing stuff.
If RAK are interested then it can only go higher.
Target depth is nearly two months away, allegedly!

Didn't take long for that bubble to burst. Loads of small shareholders join the throng anxious to be in on a major o&g strike. Great buffer for the larger holders if it does not happen.
Oh well another one for the organiser. Set your diary alarm for late June.

Indago Petroleum Limited
01 May 2007

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

SHARE PRICE MOVEMENT

The Board of Indago, the oil and gas exploration company, notes the recent
movements of the Company's share price. The Board believes that the share price
movement is a result of positive press reports following earlier comments made
by research analysts in relation to the Company's outlook and the Jebel Hafit
prospect in particular. The Company owns, amongst others, an approximate 50%
interest in the Jebel Hafit prospect.

The Al Jariya well on the Jebel Hafit prospect is currently being drilled,
targeting a mean 1 billion boe in Block 31, onshore the Sultanate of Oman. This
is a deep well which is expected to reach a depth of 5,900 metres, with an
expected high degree of technical difficulty encountering high pressures and
temperatures. Although gas has been detected during the drilling operations,
this is in accordance with the Company's expectations as the drilling is
occurring in a known oil and gas province. Whilst this is encouraging, it must
be stressed that the gas shows have not come from the reservoir formations,
which are expected to be encountered from approximately 5,400 metres onwards.

The well is currently at around 2,000 metres and is scheduled to reach reservoir
depth during the month of June, with drilling results from the well expected at
the end of July at the earliest.

I hope Indago's logo doesn't represent the share price.

For all the apparent price weakness, its very difficult to buy any amount of stock.

No chance of 10K at 111p thats for sure.

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 !!

If they drop to 90p tomorrow, is it worth getting in?

April 2007 Interview with Martin Groak

http://www.wallst.net/audio/audio.asp?ticker=AIM: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/superstocks_profile.asp?ticker=aim:ipl


.

"Work at Al Jariya has been delayed by over a month, mainly because of mechanical problems, which Groak assured had already been completely resolved.

The hole is now over 2,000 metres deep, still far from the target depth of 5,900 metres.

'It is a very deep well. We should be reaching the reservoir on July 20. Additional drilling will take another three weeks,' Groak said.

'August is the likely time we will be testing the well,' he added."

IMO it is a bit early to be getting back in, but looks like the sp is already building up for the news, which is now about a month away.

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 wells 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.

Is anyone planning to go to the AGM in Paris next week?

Not me.


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/sidZAWYA20070708045338/secIndustries/pagOil%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.

Down 12% already this morning on the back of the RNS:

LONDON (Thomson Financial) - "Indago Petroleum Ltd said it expects drilling costs at its Al Jariya-1 well, adjacent to the border with Abu Dhabi, to increase by 8.2 mln usd due to relatively slow progress as the well has proved to be technically very difficult.
The oil and gas exploration company said it has the funds to complete this well and the rest of the planned work programme.

The Al Jariya-1 well is located on the Jebel Hafit prospect in Block 31."

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.

As PapalPower says, it's disappointing news. Given the slow progress to date, I'd say that 91 days is an ambitious estimate. Still, may turn out to be a nice Christmas present for holders, but I still hold no shares here at present.

I've updated the header.