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
______________________________

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

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.

Interesting few lines from a reserach report (non-TAG), I do like the line about "other companies geological info" say like drill logs from 3X and initial reservoir tests ???........?? and the "indicates significant reserve potential"

Time will reveal all as the weeks and months go by :) whichever way it is ;)

L2 up and strong now, might see some blue days ahead.

Taghmen Energy PLC TAG New Licences Contract
2006-04-12 02:01 (New York)

RNS Number:4048B
Taghmen Energy PLC
12 April 2006


TAGHMEN ENERGY Plc

Contract for New Licences Signed in Colombia

Taghmen Energy Plc ("Taghmen" or the "Company"), an independent oil and gas
exploration, development and production company, focused on Latin America and
which listed on AIM in January 2005, is pleased to announce that the contract
for the Midas licence was signed at the offices of the Colombian National
Hydrocarbons Agency (ANH) on Wednesday 5th April 2006. The award of the licence
was announced in a press release on 15th February 2006.

At the same time Taghmen entered into an agreement to acquire an indirect 65%
interest in a second licence in Colombia that was awarded on the same day and
was the subject of a press release on 20 February 2006.

Summary of Licences

The licences in which Taghmen has obtained an interest are known as "Midas" and
"La Paloma" and are situated in the Middle Magdalena Valley Basin in Colombia
and are adjacent to producing fields.

Taghmen is the operator of the Midas licence and holds a 70% interest. It is
planned to shoot and reprocess approximately $1.5 million of 2D seismic late in
2006. Several leads have been identified which provide the potential for
recoverable reserves of up to 90 million barrels (63 million net to the
Company). The initial work programme for Midas covers a six year time frame. It
is possible to relinquish a portion of the contract area at the end of each
year.

Taghmen will not operate the La Paloma block and will derive its interest from a
shareholding in one of the joint venture participants. The Company has
identified several leads that could contain potential reserves of 20 million
barrels (13 million net to the Company). The initial work programme covers a
four year time frame with approximately $1 million in the first year related to
new 2D seismic acquisition and reprocessing of existing data.

The licences will be governed by a newly updated ANH contract, which eliminates
the Colombian Government's right of "back in" and reduces the level of taxation
from that which previously existed.

Nicholas Gay, CEO of Taghmen Energy Plc commented:

"We are pleased the licences have been signed and that we have now established a presence in Colombia with the potential to add up to 76 million barrels net to Taghmen"

Good news it was, and now the price is firmed up.

All looks good so far, 1X sidetrack starts soon. Given then need to do thorough and complete testing for data collection on all three of the 3X payzones, its going to be another couple of months before final news there, so given 1X will be at TD mid June, should be pleny of news from mid-June into a July operations update (but hopefully something more in the meantime;) )

Been looking into the Tortugas/Atzam structure A7-2005 but cannot find out who drilled the original wells....its must be the 1960's or 1970's, but does anyone know who did the original drilling ? TAG will work over three wells, 2 are listed in the article below (Atzam-2 and Tortugas 4 and they will also workover Tortugas 5).

"The A7-2005 has 84,778 acres and two anticlinal structures where 10 wells had been drilled in the Tortugas structure. The first producing well, Tortugas 63-4 yielded in an initial test 1200 BOPD of 34 API crude. Two wells were also drilled in the Atzam structure and the well Atzam-2 produced in an initial test 1200 BOPD of 38 API. The total estimated remaining proven reserves for the entire era is in excess of sixty million barrels."

Couple of my posts from AFN, which after reading all the latest info on A7-2005 and Las Casas, throw a lot of light on to the future potential of TAG :


PapalPower - 16 Apr'06 - 08:09 - 1388 of 1389

Hi strow.

1000 MSTBO means 1000 (thousand) = 1MMSTBO or 1 Million ST Barrels

1MSTBO = 1 Thousand
1000 MSTBO = 1 Million = 1 MMSTBO


Simon should still be long, if you start to analyse the present goings on and information it becomes very very attractive in my opinion.


Firstly, oil is proven and the structures proven to flow and reservoirs are now starting to be confirmed. This means that we are now getting changes with introduction of P10 and P50 and P90 figures (which correlate to potential, probable and proven). The more data they collect they more they can move from potential into the better for us "probable" and "proven" categories.

Secondly, 3X on PZ 1 is flowing, as per the RNS its swab rate was up to 150 bopd. A small workover to address "skin" problems should correlate to a final figure of around 20,000 barrels per month.

This is exciting when you put figures in :

Conservative Sales Price = 45$ per barrel.
Estimated Field Overhead per barrel = 2$
Ignore corporate overhead and work on pure cash generation :

3X = 20,000 barrels per month est. = 20,000 x 43$ = 860K US$ per month or 10.3M US$ annually.

Wells 3X, and Tortugas 63-4 and 63-5 and Atzam 02 should be able to produce at 20,000 BOPM = 4 x 20K = 80,000 BOPM = 3.44M US$ per month cash generation.

New wells 1X, Huapec 2X and 3 new Tortugas wells to be drilled should flow at much higher rates, but lets just be conservative and say 30,000 barrels per month = 5 x 30K = 150,000 BOPM = 6.45M US$ per month cash generation.

Therefore, by early 2007 cash generation of 118M US$ annually is possible and very likely from just the existing work plan. Take off the government cut, and you see TAG is self funding going forward for Colombia, more work in Guatemala and whatever else.

The proving of oil bearing structures and data they are now collecting makes things look very exciting over the rest of this year and next year. And the figures I have used are conservative in terms of sales price and conservative in terms of flow rates. Now you can why Nick Gay is surprised at the SP fall, and why the insti's got in at 55p per share.

All is in my opinion so please dyor.


PapalPower - 16 Apr'06 - 08:14 - 1389 of 1389

People are overlooking the simple fact that Tortugas is a proven production field in the past, shut down due to the civil war, and never opened again, and its easy money to be made starting it up again, this is why the funds were raised and as soon as they were at the recent placing work has started on getting infrastructure in place at Tortugas/Atzam. They can continue the work at Las Casas making it into a commercial field, but also of priority is restarting the Tortugas field, as its a nice little earner !!

License A7-2005 (Tortugas/Atzam) awarded and signed, fund raising, start work on getting Tortugas back into production.

Add in the other ones, your making loads of money by the year end.

If we go more conservative and say :

3X/T4/T5/A2 @ 10,000 BOPM = 1.72M US$ per month or 20.64M US$ per year

NT1/NT2/NT3/1X/H2 at 15,000 BOPM = 3.225M US$ per month or 38.7M US$ per year

Total annual from present workplan = 59.34M US$

(This equates to 3X and the others at 333bopd and NT1 and the others at 500bopd)

So even at these very low and very achievable rates, the present workplan will generate 59.34M US$ per year for TAG before government cut and corporate costs) Not bad at all for start of 2007 :)

All in my opinion of course.

(Remembering :

Licence Fiscal Regime

Production sharing agreement

Royalty based on API of crude, with the better the
crude the higher the royalty rate
Las Casas crude is expected to pay royalty at 27 to
28%
Profit share depends on rate of production
Maximum Company share = 60% for production
below 15,000 bopd and minimum Company share
is 25% for production over 75,000 bopd


Cost Recovery

Cost recovery statements required to be
approved
Only costs related to the defined zone of
commercial production are allowed
Once allowed, approved cost recovery is
fully deductible in period approved)

From the Sunday Telegraph (16th April 2006) :

TAGHMEN Energy.Aim listed oil and gas company focused in Latin America is in talks to buy a Columbian explorer , Petroles del Norte.

The acquisition - for an esimated 18.2 m will provide Taghmen with its first production. Petroleus operates three fields in Columbia that produce 1,000 boopd . The Columbian company has three further exploration licences and owns and operates a pipieline that generated $1m in tariff income last year.

Deal will be funded by a mixture of debt and equity.

Web Site : http://www.petronorte.com/PDN%20English/index_english.html