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

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

Some good research as i`ve come to expect from you Papal , it all looks very good on the news front even if the SP doesn`t reflect this at the moment.

DB66, I was lucky enough to read through all the Las Casas, Huapec, Tortugas and Atzam info over the weekend, and I mean everything ;) I am much more relaxed now going forward. I will copy over a couple of posts and put them on here.

PapalPower - 16 Apr'06 - 13:03 - 1411 of 1430

64bit, thanks and it does look good for Tortugas and Atzam I must say.

Las Casas is in the "not easy" class, and remains so (but that could change), but the difference now is there is recent and up to date informtion and this data is being added to all the time. I would guess giving the structure in place that at present with a sidetrack on 1X and a small workover on 3X they will leave Las Casas as is and drain the field from these 2 wells, leaving open the option of testing other area's later. This could be interesting if 3X has hit a new structure, only the new siesmic will confirm this, as if it has then its more proven and probable and potential figures for LC.

The "problems" as such have been from the low definition old seismic data. This is overcome by the new shoot just happened. Well 3X could have been a better well from the off if the new data was there, but as it is 3X has hit proven oil bearing structures and should be commercial at some decent rates (up to 20,000 BOPM) after some proposed small workover (big diameter and high penetration perforation and a new acid wash to reduce the high "skin" effect caused by the balance during drilling as the depths were different to what the low definition and old seismic said they would be).

I am very relaxed going forward, and in fact the simple fact that a debt and equity is possibly going to happen to buy out PDN in Colombia as per the Sunday Telegraph report today, shows that the banks and insti's also like the data that your link led me too 64bit :)


PapalPower - 16 Apr'06 - 15:14 - 1416 of 1430
pjackson64 issuing equity is bad only if the money raised is wasted. If the money is put to good use then there is no drop in the price, if the money is put to excellent use, as in high returns, the price will of course rise.

What we have here is the money being used to buy an asset, an asset which is generating profits, and so therefore the money is put to good use. Its not the reason for a fall coming, its more than likely for the recent past weakness if we have vender shares to be issued at 55p ??

I am glad is debt and equity, as this should mean the equity is actually issued direct to the owners on PDN, therefore they receive cash (from the debt) and shares in TAG for their company.

What it offers to TAG is firstly producing and profitable assets, but also importantly a complete corporate solution in Colombia.

Looking to the future, I think Argentina will be on the agenda some time ;)

All in my opinion of course :)




PapalPower - 17 Apr'06 - 09:19 - 1427 of 1430
James T, after reading all the information (and the link is now taken down so no further access) although the Las Casas structure is proven high quality oil and should be a commercial field in a few more months time, its very exciting over at the Tortugas field, the sooner this proven production field is back on line, the better.

It appears Hispanoil were active at Tortugas in the early 1980's after discovery work in the 1970's and then Basic Resources were active there in the early 1990's.

Whilst Las Casas has never naturally flowed during all tests over the years (however it can be commercial via pump), the Tortugas and Atzam fields have naturally flowed at the start, as per Rubelsanto.

So whilst Las Casas due to the high API of the oil is commercial but requires some hard work, Tortugas is slightly lower API but is much easier to get into commercial production state, therefore with the new seismic being done now at Tortugas and a proven production field in the past, we should be very positive that the 3 new drills at Tortugas later in the second half should all be "spotty dog" in terms of hitting the sweet spots, add on to this the three workovers there for T4, T5 and A2 and it all adds in to like I said earlier with the bits of the jigsaw fitting together.

Its been a very long read over the weekend, but its been well worth it in terms of understand the geology, reservoir flow and drainage characteristics and drill work in all things Guatemala.



PapalPower - 17 Apr'06 - 09:38 - 1428 of 1430
For those wondering why I say "jigsaw" I have followed TAG for a long long time, and now things for me are falling into place.

Just my opinions but it goes as follows :

Guatemala has a lot of oil, some in proven fields, some in proven and shut down fields, some in disputed license area's (suspended). You need to be a local player (operational in the country) in order to have the best chances of winning licensing rounds.

When TAG was set up, they took the only license available, Las Casas/Huapec 6-93. This field has oil, but its not that easy to extract and there was a lot of sceptics. Having this foot in the door via 6-93 allowed them to target one of their main early aims, which was Tortugas/Atzam A7-2005, which they duly won and which was approved and awarded rcently.
Now they have A7-2005 which will be relatively easy to get into production, the bonus on top is that the 6-93 field has also yielded high quality oil, and with some extra work should be commercial in decent quantaties. I did mention earlier that the ultimate goal, in my opinion, are the A6-98 and A7-98 licenses which are suspended, these are the ones that could yield that magical and in hiding 2 billion field. Now that TAG have 6-93 and A7-2005, they can bide their time until these licenses come available.
On top of this, as that is just Guatemela, they are expanding by gaining leads in 2 licenses in Colombia, and now the proposed buy out of PDN in Colombia, which will leave them with 5 exploration leads (2+3) and producing fields and ownership of a pipeline that generates a million a year in fee's.
They will then be, as a local company with the PDN takeover, in a much better leading position for future licenses in Colombia, and can go after the prized licenses as and when they come up in future.

So now, they are in a lead position for future potential in Guatemala and Colombia..........and I suggest possible further expansion in future will be Argentina, which could be something special.

We have been a long time getting where we are, but I think its coming together, and I start to see, rightly or wrongly, the unveiling of some strategic decisions in the past ;)

The next 12 to 18 month period for TAG could be a little bit magical in my opinion based just on what they have going on for now, and I shall happily follow it as a holder.

http://www.oilbarrel.com/email_index.html?page=/news/article.html?body=1&key=oilbarrel_en:1145325600&feed=oilbarrel_en


18.04.2006
Taghmen Energys Operations Update Augurs Well For Output In Guatemala As It Also Announces Confirmation Of New Licences In Colombia
Taghmen Energy, the AIM-listed junior focused on Central America, is active in the news flow business just now. It has announced a detailed operations update and provided details of a new addition to the portfolio.

Last December the company announced Well 3X was producing 40-degree oil at an estimated rate of 100 barrels of oil per day (bpd) under swabbing operations at the Las Casas field, which lies in licence 6-93 in Guatemala. This meant the company was off the starters blocks in terms of production.

Now it says output rose to around 150 barrels of oil per day during the swabbing operations. Then in January a downhole pump was installed and the well was tested at various production rates. The well was shut-in for a pressure build-up test in late February and the pressure recorders are due to be pulled soon. Under the planned test programme, the second of the three prospective zones in Well 3X will be perforated. The perforation will cover 44 feet of pay over a gross interval of 167 feet. 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.

The story of the Las Casas field, as far as Taghmen is concerned, starts in the first half of 2005 when wel1s 1X and 2X were worked over. Well 2X proved to be non-commercial but 1X has been capable of producing 100 barrels of fluid per day, of which around 70 per cent is oil. The company plans to sidetrack Well 1X and this work is expected to start on May 1st following the interpretation of seismic data to determine the optimal bottom hole location. It is expected that drilling of the sidetrack will take approximately 40 days to complete. There should be a much clearer picture of the wells output potential once these operations are complete.

In the past Taghmen has said there are a further nine leads in the 6-93 licence area with potential unrisked reserves of 45 million barrels in addition to the originally identified Las Casas and Huapac prospects. The plan was to acquire 2D seismic to firm up and confirm these possible leads.

The planned acquisition of 2D seismic over Las Casas, Huapac and Yaxa areas of 6-93 is now proceeding on schedule with all lines covering the Las Casas field having already been recorded and sent for processing. Initial indications are that the data being collected is generally of very high quality. It is expected the seismic acquisition on 6-93 will be completed by mid April at which time the seismic crews will immediately move on to licence 7-2005 (Tortugas/Atzam) and commence both 2D and 3D seismic operations there.

Taghmen has also confirmed that the contract for the Midas licence in Colombia, foreshadowed in February, was finalised at the offices of the Colombian National Hydrocarbons Agency on Wednesday April 5. At the same time, the company has entered into an agreement to acquire an indirect 65 per cent interest in a second licence, also in Middle Magdalena Valley Basin, called La Paloma. Taghmen has identified several leads in La Paloma that could contain potential reserves of approximately 20 million barrels (13 million net to the company).

http://www.investegate.co.uk/article.aspx?id=200604180700485636B

The big news on the link above :)


Taghmen Energy PLC
18 April 2006
www.taghmenenergy.com

ACQUISITION OF PETROLEOS DEL NORTE

Thanks for the update, Papalpower.

Welcome. I cannot see too much happening now until the first payment is made for the PDN purchase in this quarter (April to June).

I think there will just be price manipulation by the MM's, just an opinion, therefore sit back and wait for the PDN deal to become in place and confirmed with first payment.

Looking cheap at the moment...i think it is a buying opportunity at 48p

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thanks for your time

The article is under the "free content" so the link below :

http://www.investorschronicle.co.uk/content/free/2006/News/news_20060421_19.html

21 April 2006

Taghmen picks up PDN

Taghmen Energy has acquired Colombian oil and gas company PDN in a $32.3m (18.2m) deal. It will be funded from existing cash balances and through a placing and debt financing, the details of which have yet to be finalised. The deal brings production of 523 barrels per day net to Taghmen, but chief executive Nicholas Gay is confident that figure can be doubled or tripled within a couple of months.

Taghmen has a decent, albeit small, mix of production, infrastructure and exploration. So the shares are good value at 50p.