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

Company Update Webcast Webcast, watch by clicking here

June 2006 Write Up June 06 Oil Barrel Link Here

May 2006 Write Up : http://www.proactiveinvestors.com/registered/articles/article.asp?TAG

May 2006 Research Report : http://www.objectivecapital.co.uk/taghmen.pdf

April 2006 Presentation : http://www.taghmenenergy.com/documents/taghmen_04_06.pps

Email : info@taghmenenergy.com

Company Profile

Taghmen Energy is an independent oil and gas exploration, development and production company which listed on Londons AIM market in January 2005. It is focused on Latin America and has assembled a group of assets in Central America.

Key Points:

Exploration focus is shifting to new hydrocarbon destinations.
Maturing fields in traditional oil producing regions such as the Persian Gulf and the North Sea have prompted companies to seek alternative destinations for hydrocarbon reserves. As a result, there has been a notable increase in exploration activity amongst the former Soviet Union, Latin/Central America and West Africa regions due to their under-exploited reserves. Much of future oil and gas production is expected to come from these emerging hydrocarbon regions.

... and to the development of smaller fields
With the notable exception of those in the former Soviet Union, new regions however offer relatively smaller fields. Their economics make them distinctly attractive for smaller companies but unattractive for the majors. This has prompted larger companies to focus on production, leaving exploration and development of hydrocarbon reserves with smaller companies. Taghmen characterises these emerging exploration trends in the oil and gas sector.

Corporate strategy entails both exploration and production
What is unique with Taghmen is its intent to be engaged in subsequent production as well. Most exploration companies seek to exit upon the prove-up of their reserves through an asset sale to a larger company. Taghmens intent to be a company maker makes it more selective in licence acquisition. It also offers more comfort regarding the reserve potential of its licence areas.

... and is en route to be implemented through an acquisition
Taghmen is in the process of finalizing the acquisition of Petroleos del Norte S.A. (PDN), a Colombian company that operates three fields close to Taghmens licence areas. The proposed acquisition would provide Taghmen with a larger exploration reserve base, a pipeline infrastructure and some producing assets. This reiterates Taghmens commitment to be a producing company rather than a pure exploration play.

High energy prices underpin the profitability of exploration
Rising demand for energy from fast growing economies such as China and the uncertainty in key oil producing regions are likely to keep world energy prices high. This has reduced the risk profile of exploration projects considerably. Current oil prices make even smaller fields financially viable.

Latin/Central American governments are keen to develop their reserves
As the energy needs of these countries mount, the need to develop their hydrocarbon resources has gained eloquence. Governments are keenly seeking foreign investment and have adopted several policy decisions to attract them to their respective countries. Colombia and Guatemala are no exceptions. Taghmen benefits from these developments
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Price guide for Mexican/Guatemalan Oil types (3X looks Olmeca type)
http://pemex.com/files/dcpe/epreciopromedio_ing.pdf


Las Casas Weather Link : http://www.fallingrain.com/world/GT/14/Las_Casas.html

Glossary of terms used in the oil business : Link Here



Las Casas Weather Link : http://www.fallingrain.com/world/GT/14/Las_Casas.html

Glossary of terms used in the oil business : Link Here

Details on what is an oil well : Link Here

Research links ;

http://www.taghmenenergy.com/documents/taghmen_float.pps

http://www.resourceinvestor.com/pebble.asp?relid=8052

http://www.taghmenenergy.com/documents/taghmen_aim_listing.pdf

http://www.findarticles.com/p/articles/mi_m3159/is_8_220/ai_55822340/pg_3

http://www.costaricabusinessclub.com/187/english/news.html

http://www.mbendi.co.za/a_sndmsg/news_view.asp?I=67434&PG=23

http://www.ihsenergy.com/company/pressroom/articles/files/07-05-worldwatch.pdf

http://www.ideasintl.com/news/Articles/TaghmenEnergy.htm

New September 2005 Investor Presentation (MS Powerpoint);
http://www.taghmenenergy.com/documents/taghmen_09_05.pps


Major Shareholders

Significant stakeholders now include Fidelity, Artemis, RAB, Metage and Millennium.

Major Shareholders : Shares in issue: 82.3m


Major Shareholders....................................Amount....................% Holding

Gregory Charles Smith (Dir)......................13,600,001................16.52
Millennium Global High Yield Fund Ltd........7,153,848..................8.69
Chasm Lake Management Services LLC......5,615,385..................6.82
OCH Ziff Capital Management.....................5,200,000..................6.32
Artemis Inv Mgmt Ltd.................................5,000,000..................6.07
Fidelity Management and Research.............4,745,755..................5.77
RAB Energy Fund Ltd................................4,480,770..................5.44
RAB Special Situations LP.........................3,713,077..................4.51
THIRD POINT LLC.....................................2,800,000..................3.40
Moore Capital Management Inc...................2,538,462..................3.08
Liberty Square Asset Management..............2,500,000..................3.04
Meridian Natural Resources High Yield.........2,423,078..................2.94
Metage Funds Ltd.......................................1,897,470..................2.30

Other directors
James De Vaux Guiang (Dir).......................1,000,000...................1.215
Nicholas Hugo Gay (Dir)............................750,000...................0.911
John McNeil Scott (Dir)............................750,000...................0.911

2006 Work Plan For Guatemala and Colombia

Guatemala (Active drilling 2006 to early 2007)



For Las Casas license

Ongoing = Long Term Production Testing - Las Casas 3X
May to July 2006 ***** Sidetrack of Las Casas 1X
July to August 2006 ***** New Well Huapec 2X

For A7-2005 license

June to July 2006 ***** Workover of Tortugas 4 (any order 4/5/2)
July to August 2006 ***** Workover of Tortugas 5
August to Sept 2006 ***** Workover of Atzam 2
May 2006 ***** 2D Seismic at Tortugas / Atzam
June to Sept 2006 ***** 3D Seismic at Tortugas / Atzam
October 2006 onwards ***** Drilling of 3 news wells at Tortugas/Atzam
___________________________________________________________________

Colombia (Process and Prepare ahead of 2007 drilling)



Midas License

May to June 2006 ***** Reprocess old seismic and Well Studies
June 2006 ***** Geochecmical Survey
August to November ***** New Seismic acquisition

La Poloma License

May to June 2006 ***** Reprocess seismic and well studies
July to August 2006 ***** Geochemical Survey
Nov to December 2006 ***** New Seismic acquisition

PDN Colombia

Details to be issued once acquired

IC Write Up : 21st Apr 2006 IC Write Up Link Here
_________________

Research report (12th May 2006) on TAG in the link below :

Here is the comment from Nick Gay -

"please find a research report prepared by objective capital on taghmen.This covers our existing asset base,but does not take into account any impact of the PDN acquisition.Objective capital has also applied its own conservative geological risk factors to the various prospects.Having done this,they calculate a value for the assets of $84.3 million,well in excess of the current stock market valuation.Removing their risk factors indicates a value of $746.7 million.We obviously have a lot to play for !"

http://www.objectivecapital.co.uk/taghmen.pdf

PP,

should we have any concern about the following statement referring to possible damage or do you think this is routine??

'Extended testing of each zone is necessary to allow for the collection of
reservoir data and for the assessment of possible damage that may have been
caused whilst drilling the well.'

SM, no concerns for me. They need to do the testing to firm up the reservoir data, and at the same time can check if the balanced drilling approach damaged whilst going on. They need this drill data to finalise the exact method and approach to use on 1X sidetrack, which starts on the 1st of May and will complete TD mid June.

The biggest thumbs up for me is the seismic crew, they have been on site, seen whats happening, listened to what is going on, and recently requested TAG to pay for the seismic work in TAG shares at 55p instead of cash.

Now that is one big vote of confidence.

Someone picked up 40K at 49p at 10:01, nice buy. Its showing in the sell column due to 1 hour delay, MM's marked up the price to 49p bid as it was reported and then dropped back to 48p, rather than show a mid price trade.....why is that ? ;)

PP, thanks for reminding me about the seismic group share payment. I think this is going to go from strength to strength. No idea about MM's strategy sometimes, drop price to encourage buying to sell MM holdings or will this deter buyers. Based upon the encouraging news today, suggest they are trying to encourage more buyers, but WDIK!

On balance I would now say I am more happy than I was yesterday (as no RNS to read or confirm) and will steadily accumulate more over the period from now to mid-June (next 10 weeks) (1X sidetrack reaching TD date).

Given the progress on 3X and my hope that now they will keep us more updated on progress as it happens, I would guesstimate that testing pay zone 2 and then pay zone 3 will lead to a final commercial flowing well at around late June/early July (eg no more testing required and it can be let to run and produce then). The detailed testing of each zone is slowing it down, but its for the best.

I will request, and anyone contacting Nick or Geoff should too, that we are updated with the results of each pay zone as its available, as this is price sensitive information now, we need to know from each zone what the pumpable rates are for the final figure of PZ1+PZ2+PZ3. I hope they will oblige that.

50K buy at 50p earlier, there has been a string of large buys at around the 50p level, not constant but they come from time to time, someone is quite happy to pick up big lumps, but clever enough not to make the price rise by doing so, so they can keep picking up more :)

For the chartists there is this to share from DevonLad, all double dutch to me, but sounds positive :)


Devonlad - 4 Apr'06 - 11:56 - 1117 of 1118

The charts are strongly supporting a buy in TAG as it stands. I bought in this morning so I'm putting my money where my mouth is. The MACD is just about to turn positive from negative, generally a very strong buy indicator and my personal favourite. The SP moved up inside the lower bollinger yesterday indicating support from the lower bollinger and is now heading for the 20 day SMA and the daily slow stochastic has turned positive. The target price at the moment in the short term is the upper bollinger at 58p although a positive movement soon with a constant standard deviation would improve this to 64p, not a time to sell! All imho of course and the same pattern is just about to happen at JKX as well FYI.

100K buy at 49p, no price movement.

Either a short closing or an insti buy of weak holders sales :) Was not an "X" but the mid price makes an insti buy possible.

A couple of posts I made to strow, for info, and I could be completely wrong so its just my opinions :


PapalPower - 5 Apr'06 - 02:02 - 1148 of 1151
strow, from what I can see the only problem is that its taking longer than we all hoped for.
When a well, oil or gas, has multiple pay zones, all the zones need to be tested and then finally an aggregate figure is released for which the well will be put into production at.
Until you test all three zones, you cannot have an aggregate figure. Now PayZone 1 is on pressure test, and it must have successful pressure test results in order to validate the pump tests (and so until the pressure results are ok, the data for pump flow rates is not valid, and cannot be stated even if they wanted to). The good thing was that flow rates rose during swabbing, always a good sign as it starts to clean up after drilling.
Why is testing slow ? I do not know and will ask that question. I would suspect its the use of local labour where expats could be 10 times as quick. As part of the Guatemalan governments concession, they are very keen to be PC, and so require that time and money be spent training locals and that the local workforce must be of a certain %. This obviously effects progress until they become trained, although long term its a benefit as in 1 or 2 years time these people will be fully trained, up to speed and of course, low cost overhead workers, a case of what you lose in time now, you gain in money later.
Ignoring short term news (like 1X drill starting, 1X at TD, initial logs from 1X, some indications over the coming weeks on PZ results from 3X etc...) the big news will obviously be the July ops update, as you can expect that this will be the one where Las Casas is declared a commercial field, but do not ignore the potential for short term news, they could, if they wish, and its good, declare results for PZ1 on 3X after pressure results, as a sign of initial of good progress, before they go on to complete testing on PZ2 and PZ3 of 3X, and then again they might not.
This was my take on the recent ops update, all is going to plan, the underlying plan and business is good, just progress is slow.
Rather than wait for an email, you can call Nick, his number is freely available. My take is that progress is slow owing to labour and contractor problems, in terms of training the labour, and finding decent contractors to do auxillary work. All part of the Guatemela/South America learning curve, and I will be a little un-PC here, is South America known for its dynamic never resting super charged workforce............generally not :)
But, now that they have done one well, the locals will now have more experience, and this will all help to speed up future wells and progress, no pain no gain.
At least we now know for 3X PayZone1 is 31 feet, and soon to be perforated and tested PayZone 2 is 44 feet (but do not know on PayZone3 as yet). Not worried, being patient.
A difference here may be I have all paid up shares in TAG, no spreadbets, so as a share certificate holder, it matters not to me any delays, waiting a bit longer, a swing down, bounce up, whatever.....I am holding for the long term.

strow - 5 Apr'06 - 06:58 - 1150 of 1151
PAPAL-thanks for reply-seems fair and obviously your knowledge re oandg ops enables less anxiety-i do feel more reassured now-still feel the least they could have said given that the rns was probably more to keep us pis happy was that they still expect 3x to be commercial-why not state that again as in previous rns -it almost left me with more questions than answers rather defeating the point of it i think

PapalPower - 5 Apr'06 - 07:25 - 1151 of 1151
strow, they cannot say "its commercial" until all three pay zones are tested, for flow rates and pressure. We may get 2 out of 3 good for commercial, it might be 1 out of 3, it might be 3 out of 3 and it might be 0 out of 3.
Therefore, as you see, nothing can be said, until concrete proven tests are done.
BUT, as I said earlier, the on site engineers for the seismic, must have fed back decent info to their company, for ther company to want to get paid 50% in TAG shares at 55p (its a very positive sign in my opinion !!! )
At this stage I would suggest anyone buying to get hold of shares and not spreadbet, it makes for a much easier and less stressful life in my opinion :)

Your putting up a great fight PP, but the market aint listening. Im going to stay in (30% down) but anyone would start to worry watching their pot disappear rapidly

I am relaxed kivver. If the market just wants oil and is not looking at the underying business, then so be it until 3X is deemed commercial. When you look at the plans in place in detail, its more of a buy now than before.

Happily adding little bits here and there :)

No significant sells, so topped up today. Happy to hold.

Very unnerving chart. I got stopped out back at 53p but now I'm glad I actually stuck to those stop losses or I would have lost an even bigger fortune!

Papal - Your timing has been completely misjudged on this one.

I guess the fundamentals seem to be ok for long termers. I'm just going to stick with VOG and TMC for now.

Aerotus, we will have to see what happens in the coming weeks. Nick Gay in Colombia this week.

My word, its gone blue......what is happening ? ;)

This is the reason I expect a further news update next week, 45 days is today, and Nick has been in Colombia this week, so it would make sense to update the market next week........the question is, will they throw in some more 3X news ??? ;)

This is of course if we get the update next week, could be a little later, who knows.....not me :)


http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=624505

Taghmen bags additional Colombia licence Mon 20 Feb 2006

TAG - Taghmen Energy

LONDON (SHARECAST) - Oil and gas explorer Taghmen Energy posted gains on news it has agreed terms that will lead it to acquire an interest in an additional licence in the Middle Magdalena Valley, Colombia.
Under the terms of its arrangement, the Latin America-focused group, which listed on AIM in January last year, will ultimately acquire a 65% interest in the licence but will not be operator.
Taghmen said it has identified several leads that could contain potential reserves of approximately 20m barrels, or 13m net to the company.
The initial work programme covers a four year time frame with approximately $1m to be borne by Taghmen in the first year related to a new 2D seismic shoot, together with the reprocessing of existing data.
The deal is expected to close within the next 45 days and is dependent on the 'Midas' licence, estimated to have the potential for recoverable reserves of up to 90m barrels, being successfully issued., /b>
Chief executive Nicholas Gay said, Upon successful completion of this transaction, our Colombian interests will have the potential to add nearly 80m barrels, net to Taghmen, to our existing Guatemalan potential reserve base of approximately 45m barrels.
The attractive new licence terms and tremendous hydrocarbons potential of Colombia made it an obvious choice for the expansion of our Latin American asset base.

A bit of a summary on the present reserovir pressure tests and where we are :

Well 3X is the first new drill in Guatemala from many years, and its TAG's first well. They are to drill 5 more times in 2006 commencing with 1X sidetrack on the 1st of May, therefore all the data they can get from 3X ahead of the next drills will be beneficial to ensuring the best possible results.

As from the RNS, 3X has only 1 of 3 Pay Zones (PZ) perforated at present, this has been production flow tested at various rates in January/Feb and has since been shut in for long term reservoir pressure testing. This is a necessary part of the process in obtaining new up to date information on Las Casas which will be beneficial to TAG not only on the 6-93 area but on the A7-2005 area as well. Once TAG have the knowledge from the ongoing and extensive testing of 3X, it bodes well for the future, once reservoir characteristics are known I am confident still that we will have a commcercial well, and the target for me remains 500bopd as an aggregate figure for good results, but anything over 250bopd would still be good.

Production wells are regularly shut in for shorter intervals for reservoir pressure checks, but for new wells a month of testing is ideal for initial results on a new structure.

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

"Reservoir Pressures

Reservoir pressure data are most useful to the petroleum engineer in analyzing well and reservoir performance. The exceptionally low permeability of the Richfield pay sections is evident immediately when wells are shut-in and allowed to build up to full static reservoir pressure. A very long shut-in period is required to attain static pressure even on relatively new wells showing higher initial pressure in the more permeable sections of the fields. Individual wells have reached near static pressure in 200 - 250 hours or from nine to ten days. One well was shut-in for five months and continued to build up pressure at the rate of approximately 100 pounds per month. Loss of revenue resulting from long shut-in periods has limited obtaining data on shut-in pressures to key wells and to shorter build-up periods of 100 - 110 hours. A program of 20-hour shut-in pressure surveys at six month intervals recently was adopted in several fields. It is hoped that these surveys will show reservoir performance as well as indicate actual day to day operating bottom hole pressures. The history of the 20-hour pressure surveys will become more valuable with each additional survey. These surveys permit the operator to follow normal flow schedules and do not entail the loss of revenue associated with longer pressure build-up periods."

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

Reservoir Pressure

In a typical subsurface reservoir, there is one pressure on the fluid in the sand and another pressure on the sand itself. The pressure on the sand is generated by the weight of overlying burden. The deeper the reservoir, the greater the pressure. The fluid pressure increase with depth is the hydrostatic pressure gradient and is expressed in kpa [kilopascals]. It is also influenced by the density of the overlying fluid, usually water. Water density is controlled primarily by its salinity. Hydrostatic gradients range from a low of [we need metric equivalents for the following] 43.3 psi per 100 feet for fresh water to values as high as 52 psi per 100 feet for saline brines. The average is 45 psi per 100 feet (55 ppt salinity). Hydrostatic pressure on a fluid in the pores of a subsurface reservoir can be calculated by multiplying the depth of the reservoir from the surface times the hydrostatic gradient. This assumes that the water table is approximately at the surface. The depth of heavy oil wells in the Lloydminster area ranges from 350 to 800 meters.

Reservoir, fluid, and formation pressures are the pressures on the fluid in the pore spaces of the reservoir. Under normal conditions, it is hydrostatic pressure. Bottom hole pressure is the pressure on the fluids at the bottom of the well after the well has been left to come into hydrostatic equilibrium with fluids in the surrounding reservoir. Bottom hole and formation pressures are usually the same. Reservoir pressure before any production is original or virgin pressure. As fluids are produced, reservoir pressure decreases. Flowing or bottom hole flowing pressure is the pressure on the bottom of the well measured as the well is producing. When the well is shut in, the pressure will build back up to a maximum called the static bottom hole, shut in, or static formation pressure. This pressure will never be as high as the original pressure because fluids have been removed from the reservoir. Differential pressure is the difference between flowing and static pressure in a well. Casing or surface pressure is the pressure on the casing at the top of the well after the well has been shut in and the pressure allowed to build up. Tubing pressure is the pressure on the tubing at the top of the well.
Pressure in a well can be determined by a self-recording instrument, called a pressure bomb, that is lowered down the well. In a producing well, the pressure bomb can be lowered into the tubing adjacent to the reservoir. Shut in pressures can be calculated by measuring casing pressures. If the well is filled with water, the height to which the water rises (static water level) can be used to calculate reservoir pressure.
Pressure on the rock is generated by the weight of the overlying sediments. The deeper the reservoir, the more pressure (overburden pressure) on the rocks. The increase in rock pressure with depth is called the lithostatic, geostatic, or overburden pressure gradient. It is expressed in psi per 100 feet of depth. An average lithostatic pressure gradient for a sedimentary rock basin is 100 psi per 100 feet. The pressure on a subsurface rock is calculated by multiplying the depth from the surface to the rock times 100 psi per 100 feet.
The higher the pressures on oil, the more gas can be dissolved in the oil. Viscosity of the oil is reduced with higher concentrations of dissolved gas. The deeper the oil reservoir, the hotter the oil, and the more gas it can have dissolved. Both these factors reduce the viscosity of the oil and allow it to flow through the reservoir rocks more readily.

A question and my answer, for reference, but DYOR !


strow - 8 Apr'06 - 07:30 - 1242 of 1244
PAPAL-thanks for that-when it comes to 1x sidetrack do you think tag will spend as long testing etc that they have done with 3x ?if we had the same delay then it would be year end before we knew results of flows from 1x !
nick must know that he needs something to underpin the shareprice and i cant believe he is not bothered.
from rns pressure recorders will now have been pulled so is there now anything preventing them from giving us some flow rates if they wanted to ?
will you be calling nick this coming week ?i have e-mailed him again so hope to get some response soon


PapalPower - 8 Apr'06 - 11:56 - 1244 of 1244
strow, they, in my opinion, only need to do this for well 3X, and potentially only for PZ1. Once they have the characteristics of the pressure of the reservoir over time, they can confirm by shorter tests and other methods that other area's have the same characteristics. This is why 3X is so important to the whole campaign in terms of data collection. It the first well for TAG, first on Las Casas for decades, and the first with the ability and equipement and methods to do some very serious data collection on. The results of this well and 1X could have some very serious future upside for not only TAG but for Guatemala as a country !

I would envisage no such delays in future, in fact 1X sidetrack being a success it could actually be into production in the summer.

As such it must be remembered that 3X is a "discovery" well, this means it is to discover oil and to data collect. TAG were not drilling a "production" well. Now this does not mean a discovery cannot be a production well, of course it can and in 3X case it should be. Production wells are drilled after discovery and confirmation when a field has multiple wells, you simply drill down into the pay zone with correct spacing between wells, all the characteristics are known from the original "discovery" well and testing. The comparisons between well 104 for VOG and well 3X are that they are both "discovery" wells, which could be production, but with the initial drill you must spend a considerable amount of time on data collection, as TAG and as VOG are doing.

The trouble with flow rates for now, are that its simply from a single pay zone, and there are three and they must all be checked and then aggregated for a final flow rate.

They could of course give us some estimates on PZ1 production rate, and then say they still have to test the other 2 and then aggregate the 3 for a final figure, that would be nice, and hopefully that is what will happen, but you cannot be sure, they may just wait for a final figure.

Nick has been in Colombia and will be contactable this coming week. The management of TAG are concerned and surprised over the price action I feel, and they should have by now acknowledged the need for more frequent updates as, and here is a generalisation, AIM investors are fickle creatures who are used to "piss poor" management type companies, and cannot handle surely a good set of management, and think there is something wrong when they are quietly confident. They need to be loudly confident ;) :)

For all our negative poster feelings, the simple fact of the recent fund raising and events after should be enough to satisfy, but sadly, more is required, and lets hope more is now delivered in terms of frequent updates, and Nick and Co can now be loudly confident, and no longer quietly confident :)

Taghmen Energy PLC at the COPIC conference April 27th 2006 @ 12:00

http://www.newswire.ca/en/webcast/pages/en/copic20060426/

About the COPIC conferences
Since 1982, a series of 69 COPIC investor conferences have been organized by Rapport and sponsored by the presenting corporations. This is the 25th annual COPIC Producers spring conference for Canadian crude oil and natural gas exploration and production companies.

Investment research analysts and coordinators, institutional investor, portfolio managers, selected stockbrokers, investment and corporate bankers are invited to attend free of charge.