Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: estimated at 1 billion boe. Al-Jariyal-1 presently being drilled - originally due to complete in 160 days (9 July). Drill problems and raised costs announced 11 July. 21 Sept announced that drilling had reached 3600m (target depth 5900m) and was expected to penetrate the objective reservoirs towards the end of Q4 2007. Drilling problems and delays to cost additional $2M. 2D seismic results "encouraging". 28 Dec announced that drilling progressing slower than expected and costs increased to $25M for Indago alone. Now expected to hit target depth in Feb and test by end of April 2008. 4 Feb - Announced that well had reached 5131m, then encountered high-pressure, high-temperature salt water, disabling drill string. Assessing damage.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Hawamel-1: Estimated 61 million boe. Gas shows during drilling. Currently suspended pending horizontal wellbore testing (unlikely that standard testing procedures would achieve a commercial flowrate). New 2D seismic results "encouraging". Zad - 1 on the Adam prospect will be drilled after Al-Jariya with same rig. Evaluating seismic with a view to refining the prospect inventory.

Oman Block 43a (50% Indago, 50% RAK Petroleum)
Evaluating seismic with a view to refining the prospect inventory.

Cash
$54 million at 30 June 2007

After sale of many assets to RAK Petroleum, Indago is now an exploration company.


Click to enlarge work programme


Useful Links:
Indago Portfolio Overview
Sep 06 : Investor Presentation
Sep 06 : Interview with Peter Sadler, CEO of Indago Petroleum
27 Sep 06 : Interim Results RNS
8 Nov 06 : West Bukha-2 secondary target success RNS
21 Nov 06 : West Bukha-2 primary target success RNS
5 Jan 07 : Conclusion of West Bukha testing, Hawamel-1a exploration
10 Jan 07 : Oil Barrel Article - Indago Petroleum Enjoys Further Success On Block 8 Offshore The Sultanate Of Oman In The Middle East
Feb 07 : Al-Jariyal-1 spudded and "encouraging" seismic progress
13 Feb 07 : Oil Barrel Article - Indago Petroleum Goes For A High Impact Exploration Well Onshore The Sultanate Of Oman
Mar 07 : West Bukha info from Heritage Oil
7 Mar 07 : Potential Transaction RNS
11 Mar 07 : Oil Barrel - Little Fish In A Big Pond: AIM Juniors Finding Their Feet In The Middle East
14 Mar 07 : RNS - Disposal Of Assets (special dividend, share consolidation)
15 Mar 07 : Indago Presentation On RAK Petroleum Deal
1 May 07 : RNS - Indago response to rapid share price movement, plus drilling progress update
11 July 07 : RNS - Drill problems, $8.2 million cost increase and delays to reach target depth
21 Sept 07 : RNS - Interim Results
28 Dec 07 : RNS - Slow Progress And Increased Costs At Jebel Hafit
4 Feb 08 : RNS - Jebel Hafit update - Salt water encountered, drill string stuck

Yesterday's RNS states: "We are currently pulling the out the test
equipment from the well, and depending on analysis of the results, including the
downhole pressure data, the Joint Venture will decide whether to carry out
further testing."

So its not yet 100% certain that the lower section will be tested, however if I was running the well, I'd want comprehensive testing on all the levels before developing the asset further.

Protected 60K buy at 2p over the offer price today. Nice sign.

Today's the day that Hamwell-1 is due to reach its target depth. I expect an update next week, hopefully to confirm this progress.

I see the excitables have hit the ADVFN board. Usually a sign that interest is building. Fingers crossed we can avoid the hype and trade on the facts here.

LG International (and Indago) to begin oil production in Oman in 2008 (West Bukha)

12000 barrels per day.

Good news :)

Looks like news might be coming for H-1 well ?? Its due anytime now..

Drilling now (Testing?) now is Hawamel-1 which is targeting a mean, gas reserve base of 367 Bscf (approximately 61 million boe).

Next up is a 1 billion boe target, Al Jariya - 1.

After that comes a 140 million boe target Zad-1.


Some exciting times ahead, thats for sure, especially after the wonderful results on the last drill West Bukha - 2.

510K of X trades at mid-price

http://www.investegate.co.uk/Article.aspx?id=200701050718430349P

All in all good news, especially on West Bukha-2 with those flow rates. Hawamel-1A also has hit gas but requires a small workover.

And now on to the big billion boe Al Jariya well which will spud the end of this month.

I've updated the header with a summary of Indago's assets.

Good news about increase of West Bukha flowrates. When that comes online in 12 months time, Indago will be in a mighty good position financially.

H-1a... not the news I was hoping for. I'm skeptical about Indago's chances there. I'd give them a 1 in 10 chance of getting that one flowing commercially.

Very positive article on OilBarrel: Indago Petroleum Enjoys Further Success On Block 8 Offshore The Sultanate Of Oman In The Middle East

I've added to the header.

Interesting article, but block 47 is presumably the reason why the sp is not on the move & won't be until they sort the difficulties there.

Well, the billion bopd well is spudding end of this month. Its going to take a time to drill, but I am sure the speculative money will be in well before TD, its a very good chance, billion bopd well, so, will be plenty of interest.

Indago get a paragraph in the oil and gas section of today's Shares Magazine. No new info to report, but recaps last RNS to a wider audience.

Energy Intelligence: Oman Explorer Indago Targets Bukha Field, Mountain Fault Line

Needs a subscription (free trial) to view full article. It's a mix of research plus interview with Peter Sadler.

Key points from the article:
1) Jabel Hafit estimated to contain 1 billion barrels of oil PLUS 7 TRILLION cu ft of gas!
2) Indago planning at least four appraisal wells at Jabel Hafit.
3) Zad expected to contain 36 million barrels of oil plus 650 billion cu ft of gas. Gas may double if structure is similar to nearby Omani fields.
4) West Bukha 2 to cost $60 million to bring into production
5) West Bukha 2 condensate volumes 75% higher than anticipated per million cu ft of gas. (350 barrels vs 200 barrels in previous estimate)

Thanks for that VM

Thank google alerts, not me :-)

RNS today. I'll update the top post after work.


Indago Petroleum Limited
06 February 2007



6th February 2007

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

Commencement of Drilling on the 'Jebel Hafit' Prospect, Onshore Sultanate of
Oman and Operations Update

Highlights

Indago spuds Al Jariyal-1 on Jebel Hafit, a high impact exploration
prospect.

2D seismic acquired over leads in Blocks 31 and 47 onshore Oman

Indago is pleased to announce that it commenced drilling the Al Jariya-1
exploration well on the Jebel Hafit prospect, in Block 31 onshore the Sultanate
of Oman (Indago 100%). At 0600 hrs on 6th February 2007 the well was drilling
ahead in 26' hole at a depth of 103m, having already set 30' casing.

The well, drilling to approximately 5900m, is targeting the Natih and Thamama
formations which are proven producers of both gas and condensate in analogue
structures such as Shams (operated by PTTEP), Saj'aa (BP) and Margham (DME).

Al Jariya-1 is targeting a mean, gas and condensate reserve base of
approximately 1 billion boe and is expected to take between 125 and 160 days to
drill.

Additionally, as part of our strategy to create further, high impact drilling
opportunities, Indago has been acquiring 2D seismic over its leads in Blocks 31
and 47 onshore Oman. Currently the Company have shot around 100 km of new
seismic, with encouraging results. The programme is expected to continue until
March 2007, possibly encompassing incremental leads identified in Block 43A, a
new Block in our portfolio which was announced to the market in June last year.

John Hurst, Exploration Director of Indago Petroleum commented

'Jebel Hafit is a high impact exploration prospect and it has taken five years
from originally identifying the potential and defining the prospect, to finally
starting drilling. It is incredibly exciting to be at this point, as prospects
with such large upside potential are rare.'

REVIEW BY QUALIFIED PERSON

The technical information and opinions contained in this announcement have been
reviewed by Peter Sadler, CEO of Indago Petroleum, who is a qualified Petroleum
Engineer (MSc Imperial College, London, 1982) and has been a member of the
Society of Petroleum Engineers since 1981.

Indago Petroleum Limited

Peter Sadler, Chief Executive +971 4 332 5444
Martin Groak, Finance Director +44 20 7494 6085

College Hill +44 20 7457 2020
Paddy Blewer
Nick Elwes

Nabarro Wells (NOMAD) +44 20 7710 7406
Marc Cramsie

Website:

www.indagopetroleum.com





Notes to Editors

Indago Petroleum:

Indago Petroleum plc is an oil and gas exploration and production company which
listed on the AIM market of the London Stock Exchange in December 2005. Indago
is geographically focused in the Middle East and is the operator of six licences
in the Sultanate of Oman and the United Arab Emirates. The assets include Bukha,
a producing gas-condensate field and West Bukha, an approved gas-condensate
development. Both fields are located offshore Oman.

Indago is also an active explorer and has commenced an exploration drilling
campaign comprising three onshore wells targeting gas-condensate bearing
structures. This programme is planned to be completed by mid 2007.

Indago aims to become a leading producer of gas, condensate and LPG in Oman and
the United Arab Emirates. This will be achieved through active exploration,
development of the existing portfolio and acquisition of related acreage and
undeveloped resources in the region.

Indago's technical and commercial expertise is focused on a tightly defined
geographical area of politically stable countries with proven hydrocarbon
reserves and an active gas market. The Company's competitive advantage lies in
its strong acreage position near existing infrastructure and a small
professional team with long-term experience in the region.






This information is provided by RNS
The company news service from the London Stock Exchange

And so what is likely the potential largest single drill of any AIM junior (going in to what could be 1 Billion BOE and 7 TCF) begins :)

I've added a new link to the header and updated some of the asset info.

Modest volumes today considering the news. Everything seems to be on schedule against the plan. I'm impressed with the management, in particular timekeeping. Just compare the management of work by Indago to that by other AIM oilers.