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
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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
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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

Operations update today on the link below :

http://www.investegate.co.uk/article.aspx?id=200605170700320901D


As I expected after reading through all the 3X data, a workover is required to maximise the flow rates, although the present 170bopd under swabbing shows its potential, will be a commercial well I do think :) and if the workover is done the target output rates will increase, some upside to that 3500bopd end of 2007 figure already coming I feel.

Seismic is done, enviromentalists will be happy the footprints will disapperar in 6 months, keeps them quiet.

As I said, PDN first closing put back to 16th of June (at PDN's request).

Research report shows that present value us 57p, and potential for over 400p per share (excluding the upside from the PDN deal which I think is worth 60m $ on top after any dilution).

All very good, a new level of better communications being shown. 57p on sale at 39p at the moment.

Excellently timed Operations Update!

PP do you have any views on the 3X Well water and wax content??

silvermede, said before that 3X will require a workover (small one) to reduce the water cut and also increase the flow rates. Perforations appear too high, meaning water coming in as well.

Small workover being new pipe, cement and perforate, new acid job and 3X goes into production at a decent rate I think, maybe some upside coming on that 3500bopd by 07 year end with a good workover on 3X :)

PP, Many thanks, prospects look good

UK smallcap opening - Taghmen Energy up on 83.4 mln usd valuation
AFX


LONDON (AFX) - An operational update provided the impetus to Taghmen Energy, 4-1/2 pence better at 42.

The oil and gas explorer, focused on Latin America, has been valued by Objective Capital, using their own conservative geological risk factors and oil price, at 83.4 mln usd with an upside unrisked value of 700 mln usd-plus.

I have been lurking in the background totally shellshocked with what has happened to sp since i bought in December.
Although i knew it was a good company i was starting to get concerned with the constant fall and appearance of that deramping prat Haystack.
I was only thinking to myself yesterday that the biggest downfall of TAG is there lack of newsflow, all it takes to steady nerves is a statement to say how things are going every so often and that they have now down .
I`m feeling calmer already.

doughboy66, I know how you feel, I'm still nursing 15%+ loss on TAG (although I shall not be selling, imo there is plenty of upside to come over the next 12 - 18 months) and I only bought last month, thought about topping up but I have an overweight position in oil co's atm so looking to pick up more value stocks as they are becoming more attractive at current levels.
2517

Your doing better than me then 2517,i see its dropping again probably due to big losses on Dow at the moment.

DB66, the only consolation in the present markets is that TAG is bottomed, and ain't going any lower that its been already this week. A lot of other oil and mining stocks might be testing new lows for the week tomorrow.

Objective Captial appear to be ok, as they are covering ELP too from 2nd May, which I think is oversold now as well, so I think they are very Objective.

Worth signing up for free at their website for TAG and other small cap updates :

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

From AFX

"Taghmen Energy stood out among gainers, rising 1-1/2 pence to 39 following
an upbeat operations update. The company said overall progress on its operations is "good and on track" with its acquisition of Colombia's Petroleos del Norte signed and due to close shortly, new licences in Colombia and steady progress at its Guatemala work programme.
In an operations update, Taghmen said Objective Capital has recently issued
a detailed research report on the company, valuing it at 83.4 mln usd with an
upside unrisked value of more than 700 mln usd."

Someone elsewhere was asking about the "high wax" mentioned in the ops update for 3X and what this means. Wax formation occurs when the oil/water mix is extracted under certain conditions. Obviously the formation of wax prevents high flow rates, simple solids/liquids equation.

This is interesting, as we know the AOFP for 3X to be good, very good in fact, however the present lower rates of oil extraction have pointed to a "high skin" factor rating.

Is this "high skin" factor rating been from wax formation ?

To treat for wax formation there are many possible actions.

Therefore, the potential upsides for well 3X keep on coming, a small workover to reduce the water cut (cementing and reperforating) is possible, new acid job to reduce skin factor is possible and work to prevent "waxing" is possible. All of these or some of them will help to increase the actual flow rates to be much higher (based on the good AOFP figure for well 3X (AOFP = Absolute Open Flow potential).

If anyone wants to look into the "waxing" issue further, research under "paraffin control / paraffin problems"

PP, Thanks for the 'Waxing lyrical' explanation. That helps in that it can be positively managed. :-)

silvermede, I think after mid June the TAG SP can also be positively managed, and not negatively volatile anymore ;)

Article from the FT (www.ft.com)

Taghmen Energy sees upside
By Stephen Bird
Published: May 18 2006 03:00 | Last updated: May 18 2006 03:00

Taghmen Energy, an oil and gas company focused on Latin America, yesterday announced that its operations were "good and on track".

Drilling licences in Guatemala and Colombia were making progress, the company said, and its acquisition of Petroleos del Norte, a Colombian oil producer, is due to complete next month. Objective Capital, an independent research provider, had issueda report on the company valuing it at $83.4m (44m) with an upside unrisked value of more than $700m.

Nicholas Gay, chief executive, said: "Our expanded operations will provide substantial upside from developments and exploration combined with the rebalancing of the company's risk profile."

Its shares rose 1p to 39p yesterday.

We need flow rates and quick!
I bought in December thinking that testing would be finished end of January -early Febuary now it looks like June,i hope there worth it!

DB66, I do not think 3X flow rates will be anytime soon, it has to have a small workover done. You might actually now get 1XA rates before 3X.

The big difference coming is the PDN deal and production and pipeline revenues. Guatemalan production I would guess is still going to be late Q3 or Q4 start up with 1XA, 3X and also from the Tortugas/Atzam workovers.

Thanks PP as usual for keeping me and others well informed.
I know patience is the order of the day but i find it so frustrating to be locked into a share with such a big loss.

I think Taghmen will soon rise...just need patience as u said...and it is a good buying opportunity

DB66, although I could say I am locked in, it is a long term investment for me.......but I do know that feeling of wishing you had sold out earlier and purchaed a lot more now cheaper........ :( :)