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

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........ :( :)

The site is free to register on, and a good new write up on TAG.

http://www.proactiveinvestors.com/registered/articles/article.asp?TAG

Taghmen Energy: Is Guatemala overshadowing the upside potential in Columbia?
By Ian Mclelland

My valuation is around 5p

Nothing much happened today, bid price stable, CANA and SCAP moving the offer down.

I would suspect CANA loaning stock for shorting, and SCAP helping...........watch them get whipsawed if TAG can pay all the PDN payment through debt and cash and not need to raise equity.

Keep a close eye on events in June, especially the 19th onwards..... :)

From now to mid June, as has been said, the SP will be weak.

http://news.bbc.co.uk/1/hi/world/americas/5024428.stm

Colombia's Uribe wins second term

Alvaro Uribe has promised to stick with hardline policies
Colombia's President Alvaro Uribe has been re-elected in a landslide election victory, taking 62% of the vote, the country's electoral commission says.
Mr Uribe, who changed the constitution so he could run for a second term, wins another four years in office.
Correspondents say his tough policies against drugs and militants paid off.
There was no major violence on election day, after huge numbers of security forces were deployed, and Farc rebels pledged not to interfere.
With nearly all ballots counted, Mr Uribe had 62% of the vote - well over the 50% needed to win in the first round.
He pledged to carry on his tough conservative policies.
"With the heroism of our soldiers, we will move forward to have a more secure Colombia," he told supporters.
"Democratic security has started to regain the liberties that terrorism had taken from us."
His closest challenger, left-wing senator Carlos Gaviria, took 22%.
He accepted defeat, declaring: "We're very happy with the results. For the first time in the country's history the main opposition party will be comprised of the democratic left."

He is the one who opened the oil industry up, and now he will continue to do so :)

Thats good news Papal ! I hope you don`t mind me posting that on the CHP thread as it is good news for them as well.

DB66, carry on, its good news for GOO as well as CHP and TAG :)

I would say get ready for another "fantasy" SP rise and blue from CANA, I would suggest ignoring it again and not fall into their games of pumping the price to dump it back. All opinion of course.