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

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.

I think that is a very good appointment, in itself that has an element of de-risking in it I think :)


Taghmen Energy PLC
31 May 2006
TAGHMEN ENERGY Plc
www.taghmenenergy.com

APPOINTMENT OF NEW DIRECTOR

Taghmen Energy Plc ('Taghmen' or the 'Company') an independent oil and gas
exploration, development and production company, focused on Latin America, is
pleased to announce the appointment of Richard Lavers as a non-Executive
Director with effect from 1st June, 2006.


Richard Lavers

Richard Lavers retired from the Foreign and Commonwealth Office ('FCO) in
February 2006, where his last appointment was as UK Ambassador to Guatemala,
with accreditation in El Salvador and Honduras. In his 37 year career, he has
also been UK Ambassador to Ecuador, Deputy Head of Mission and Consular General
in Chile and has served in Argentina, together with a number of senior positions
within the FCO.

During the 1990's he also undertook a secondment with a merchant bank in London.

Richard Lavers also holds a degree in history from Oxford University.

Nicholas Gay, Chief Executive, Taghmen Energy Plc, commented:

'We are very pleased to welcome Richard to the Board. He has a wealth of
experience, knowledge and contacts within Latin America and provides the Company with a depth of political and environmental understanding of, and insight into, the area of our operations'
31st May 2006

PP,

Agree, seems an excellent appointment and a shrewd move by the company, which may give TAG the edge over others vying for business in the same market place and in dealing with all the in country stakeholders. (Provided he was a well known, liked and effective UK Amabassador?)

SM agreed, and hopefully he will buy a few shares too, a nice cool million would be nice to start getting rid of this overhang :)

It just keeps falling.

Haystack, but your bear stance is now perhaps in trouble, with the seller cleared and the PDN deal to be complete by June 16th......from then on in its only production, revenue and new wells.........enjoy the last few weeks of the bear run as it changes before too long :)

Should be good news for TAG's (sorry, still PDN's at the moment) pipeline tariff's :)

http://news.monstersandcritics.com/energywatch/news/article_1166565.php/Russia_sets_sights_on_Colombian_oil

Down again today I see!

http://www.oilbarrel.com/news/article.html?body=1&key=oilbarrel_en:1149645605&feed=oilbarrel_en

07.06.2006

Research Group Objective Capital Puts A Valuation On Taghmen Energy
Taghmen Energy, the AIM listed junior focused on Central and South America, has the kind of profile which investors like to see in a new, small E&P company. It has some production to pay the bills and ostensibly development opportunities and a lot of exploration upside.

But what is the company worth? oilbarrel.com is not in the business of saying a companys shares are too high or too low. We set out the story as best we can and let investors decide. We are not averse to report what brokers say, however, along with the normal health warnings. Corporate research specialist Objective Capital has recently produced a document on Taghmen which has led the companys President and CEO Nicholas Gay to say: The publication of the research report is very encouraging as it gives the first independent view on the tremendous potential and value of Taghmens operations.

Taghmens assets are currently in Guatemala and Colombia. Guatemala is an oil producer, although it does not appear to have vast reserves. Engulfed in civil wars of one kind and another until 2000 the country is only now beginning to emerge as a hunting ground for explorers. Because the oil and gas seems to be in modest accumulations the country is ideally suited for small, lean E&P companies.

Taghmen holds the 6-93 Licence, which contains two areas known as Las Casas and Huapac, with, according to Objective Capital, recoverable reserves of 16.5 million barrels and 3.1 million barrels of oil respectively. Licences have been granted for a 25-year period. Taghmen has already developed one well, 3-X, which has been producing under swabbing operations. Currently the well is producing at a calculated rate of 170.6 barrels of oil per day with a daily average water cut of 36.5 per cent.

The other Guatemala asset is Licence A7-2005 (Tortugas/Atzam). This is a 25-year contract consisting of a six-year exploration licence convertible to an exploitation licence at Taghmens option. The licence covers an area of approximately 78,000 acres with estimated recoverable reserves of 5 to 16 million barrels. It is close to the Rubelsanto field, which in the past was a producing oilfield. There have also been producing wells in the licence area itself, which Taghmen intends to rehabilitate.

Colombia is also considered highly prospective for smaller E&P companies. The government is keen to attract explorers and has introduced good tax breaks to bring in investment. It has become popular with London-listed explorers such as Chaco and Black Rock. Taghmen has an interest in the Midas Licence. This covers 41,000 hectares and is located in the Middle Magdalena Valley Basin, adjacent to producing fields. Taghmen has a 70 per cent interest in the licence and is the operator. Taghmens 70 per cent interest represents estimated recoverable reserves of 63 million barrels to the company. Taghmen is planning to shoot and reprocess US$1.5 million of 2D seismic in late 2006.

Taghmen also holds a 65 per cent interest in the La Paloma licence, which is also in the Middle Magdalena Valley Basin. The Paloma Licence covers 13,780 hectares with estimated recoverable reserves of 20 million (13 million for Taghmen).

What does this all amount to? Objective Capital says there is an enterprise value of US$83.8 million. This figure is derived as follows: using the reserves figures on the licences as set out above, there are exploration assets of US$79.6 million. Take away an overhead head of US$15 million and you get a total expected operating value of US$64.6 million. Add in starting cash of US$19.2 and you arrived at a total enterprise value of US$83.8 million. Strip out bank and other debt and you get a total value of equity claims of US$83.4 million. Take away alternative equity claims, warrants and options of US$12.5 million and the value attributable to equity holders is US$70.9 million. With outstanding shares of 69.2 million this equates to US$1.02 a share or 57p. This is north of the current price. Objective Capital makes the point: Taghmens intention to be a producer of its exploration properties means that it favours prospects with more certainty and hence more comfort regarding the existence of oil - if not the potential reserves.

There is no certainty that the current enterprise value is correct and when it comes to potential reserves you enter the realm of speculation and hope. No amount of seismic can tell what the amount of oil is in the ground, only drilling can do that. In assessing the potential reserves, Objective Capital, in addition to the recoverable reserves stated above, throws in another 55 million barrels for 9 other prospects in Guatemala and a further 30 million barrels for Colombia. This gives you 190 million or a total unrisked potential value at US$3.9 a barrel of US$746.7 million. However, if you put an average 17 per cent per licence for just geological risk into the mix (i.e. the presence of suitable source rock, existence of a reservoir, adequate trap and seal and dynamics or, simplistically speaking, the likelihood of successfully finding oil) then the risked reserves fall to 32 million barrels for a value of US$91.6 million, a bit different to more than US$700 million.

Also the assessment does not allow for the latest purchase. Taghmen is in the process of buying Petroleos del Norte which will further strengthen its operations in Colombia. PDN owns and operates the Rio Zulia-Ayucucho pipeline, which generated US$1 million tariff income in 2005. It has three producing fields producing approximately 1,000 barrels per day and holds three exploration licences. This will surely alter the valuation.