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

Nicely blue, with L2 now at 6 v 4 @ 68/73

Nice start to the new year, the spread just widening a little on the offer, maybe trying to slow the buying in the hope they get some sells
Its getting interesting now

Moving up nicely again, lets hope it continues :)

Just as a matter of interest, PP, what is your strategy if the news turns out to be bad? I know these have been a fovourite of yours for a long while, but a 'duster' is going to hit the sp pretty hard, imo.

Could be a fall to high 20p levels, but not worried at all, as the next two drills have upside of over 200p.........

They are fully funded already, so even if this one is a duster, it will not be long before Zad-1 is drilled, and that alone could deliver over 140p of upside.

So on a drop to 20p or 30p you suddenly then have potential upside to 140p and over........

Most of my shares are now "free ride" after the last rise and the special div, so I am not in any rush to sell, and will be happy to ride over any rough news.

Out of interest :

L2 is now 1 v 1 @ 74/78


On Line Limits are :

BUY 10K @ 76.67p

SELL 15K @ 74.55p

It's risen quite well over the last few days and although i have made a small profit i know it may be difficult to buy back in later, so with the small amount of shares i have it's worth the risk for me to stay in,
Thanks PapalPower

I agree with PP about the drop to high 20s if well is not commercial. This risk of that happening is still greater than the chances of a commercial well, so IPL is by no means a dead cert. Stoploss, or ideally guaranteed stoploss, is a good idea.

Upside potential remains good, risk remains high.

I think the good thing here is that most people still cannot compute the upside, and are perhaps thinking it can go to 100p or 150p on success, they really do not understand the potential here or the fact that on proving up, if they do, the mean potential figures for this well, that it will be worth very much more than that.

If the well is a success and there are commercial flows, and lets not forget the odds are still firmly stacked against it then truly on the mean figures estimated, the upside here is 2000p a share to IPL, after appraisal wells. A normalised figure post appraisal but on confirmation of commercial flow and estiamted size should be half that, and so this is why you get the 1000p upside on this one drill.

The thing with IPL is its well worth buying shares (real ones and not CFD or Spread Bet positions), as they are fully funded for two further drills.

This being Zad-1 with mean estimates of 140MMBOE, thats worth around 140p a share potential to IPL, and then the H-1 horizontal completion which at 60MMBOE is worth around 60p a share potential upside on mean figures. Zad-1 is a strong prospect, and H-1 is confirmed as gas bearing.

Therefore by holding real shares, if the ongoing AJ-1 well does fail and the SP does drop down short term to the high 20's, you still have around 200p potential upside from the other two drills, and Zad-1 will spud as soon as the rig is free from AJ-1.

Those with real shares will be able to hold through any volatility if AJ-1 fails, and then will be in a few months time exposed to the Zad-1 drill result and potential 140p upside.

This is why real shares are much more of a "safer bet" if you are going to speculate on IPL and the big AJ-1 drill. Those with margin positions by CFD or Spread Bet will not have the luxury of waiting a few months for more big upside, but will be hit with big margin calls.

Some people will try to talk this one down if AJ-1 fails, but you have to remember that Zad-1 is worth potentially 140p a share to IPL, and that the people talking this down will be wanting to buy in cheap ahead of Zad-1, which most people see as a very good chance of being successful.

There are others who want to buy in for AJ-1, however they are, unlike others, unwilling to risk their cash, and so are trying to wait for the RNS of any good news, and then rush to buy in. They are also trying to talk down IPL as obviously the more it rises pre AJ-1 RNS, it means on good news there is less and less gain for them.

Interesting this one, but I do feel, and in a ways its lucky, that most people really are unable to appreciate the potential of this big AJ-1 drill and what it could possibly mean for IPL on good news.

The chances of failure are still higher than success and that must not be forgotten, but for those willing to flirt with risk, and willing to be patient and hold through any rough times on the AJ-1 drill, and wait for the Zad-1 drill following, then buying a few real shares of IPL is worth a punt imv.

I disagree with your statement that real shares are better than spreads on this company. A long position with a guaranteed stoploss in place will restrict any downside from a non-commercial AJ-1. If an investor is interested in the potential of Zad, new long positions can be taken at a later date once the share price hits a lower value.

Additionally, spreads are better tax-wise than real shares, and this could significantly improve an individuals finances once their interest in IPL is complete.

ValueMax, a lot will depend on any wild swings before news, if the MM's attempt to take out long and short stop loss positions by swinging wildly before any news, then they can quite easily, if you're on margin you might be forced to make calls or close, before the news comes out..........a lot will depend on how the MM's play this now.

The way I see it, real shares are just that, no pressure to sell, no margin to pay, sit and wait patiently, if AJ-1 fails, then just wait for Zad-1.

However, each to their own, variety is the spice of life.

In it's former guise as Novus Petroleum, Indago entered into a deal with Darcy Exploration whereby Darcy would introduce potential assets to Novus/Indago in return for the option to take a 25% stake in any asset which Novus/Indago purchased over the next two years (2003 - 2005). Darcy took up their 25% option in several assets. Today, those assets belong in part to Leed Petroleum, an AIM company. This morning they announced that their present drill has produced "compelling evidence that the primary target sand will be commercially productive and should exceed pre-drill expectations."

Sadly, Indago did not retain any interest in those assets following the hostile takeover of Novus in 2005, so I've created a new thread specifically for Leed Petroleum if anyone is interested.

Tricky to pick a %age stop loss which is going to be effective.
Down 5% today which may have been enough to trigger a tight stop.
If bad news comes then I can't see a non-guaranteed stop being good enough.

hmmmm obviously ValueMax coment is not the reason of this 5% drop today, HARRYCAT I am far from selling yet, even if there is some bad news, it might be some delay, they still didn't reach deep enough to say ifs something there or not...

Not long to go now until the first reservoir gets penetrated, lets see if they can keep a lid on the rumour mill......or not.

One Broker seems to think that the first target is going to be reached today. Might make monday/tuesday interesting.

If they do hit oil, is their strategy to then sell the field & move on? I seem to remember them saying that they preferred to stiick to what they were best at, which was exploration, not producing. If they sell, we should be in to the same scenario as last time with a special divi being paid, followed by a proportionate reduction in the share price.

If they don't?

See post #265 to the answer to that one, blackdown.

Interesting to see people talking about 'upsides' with specific sps prior to the issue of drilling results. How can they possibly know. Outcome might be no oil, some oil, or a lot of oil.