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

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.

Operations Update

RNS Number:1553E
Taghmen Energy PLC
07 June 2006

TAGHMEN ENERGY Plc
www.taghmenenergy.com

OPERATIONS UPDATE, JUNE 2006

Taghmen Energy Plc ("Taghmen" or the "Company") an independent oil and gas exploration, development and production company, focused on Latin America, is
pleased to provide the following operational update on its operations in Guatemala.

Well 1XA

Operations on well 1XA commenced in late May, 2006. The sidetrack was successfully kicked off at a depth of 5,810 feet. The total depth is planned to be at approximately 10,000 feet and the sidetrack is expected to take 35 days to drill.

Huapac 2X

The bottom hole location for the planned Huapac 2X well has been selected, based on the interpretation of the 2D seismic survey shot earlier this year.

A drilling pad will be constructed whilst the well 1XA is drilling. Huapac 2X is expected to spud in late July 2006.

Licence 7-05 (Tortugas/Atzam)

Negotiations with the Ministry of the Environment are ongoing to approve the environmental impact assessment. Technical approval has been granted by the
Ministry of Mines and Energy to convert the planned 3D seismic shoot to a 2D shoot. Taghmen believes, based on its understanding of the current status of Government approvals, the Tortugas/Atzam seismic acquisition and the first of the three well work overs will commence in late June 2006.

7th June 2006

An interesting post from Arturo at AFN, if the theory is right and if TAG do go debt for PDN and not equity issue, then there will be some very interesting times ahead, not company wise, but of the backroom consortium type trying to wiggle their way out of what they have made, without losing a load of money from short selling and crashing the price.... Who knows... DYOR !


"
ArturoBechstone - 7 Jun'06 - 12:22 - 2303 of 2324

@ all

I had a quick look through the share history of TAG.L - quite interesting to see that we don't encounter such 0.0001$-shares issued to some ruthless initiators like we see sometimes at the OTC or AIM. All shares were issued above the current share price regardless if deemed or cash prices; 0.65$ = 0.35 GBp was the lowest price. We have 83,641,922 o/s as of today and - more important

- 2,888,889 warrants @ 0.65 US$ (0.35 GBp)
- 29,217,466 warrants @ 0.90 US$ (0.48 GBp)

outstanding that might get converted till 31/7/2006.

If I were a small and clever institutional buyer and I'm convinced of TAG.L, I would form an alliance with another two or three as small and as clever institutions in order to 'kill' those warrants. Probably it was the intention of TAG.L to use the proceeds of the potential warrant conversion to (partly) finance the latest take-over. The conversion would provide up to 28m US$ (15m GBp) for the company's treasury.

But what's happening if there is no incentive for such conversion? writiwrite -TAG would need to collect monies through another PP that is priced closely to the current share price. Now our cunning consortium will enter the scene and will rebuy the shares it already sold in order to sink the shareprice at a resonable discount.

My opinion - your choice !

Arturo"

Its blue BUT I would say ignore it........SEYP have not moved and are still 27/33

The others are just messing around, up on good days and down on bad, they will probably all now drop again Monday to make TAG red.......

I would say, when you see SEYP move, take notice, until then SCAP/WINS/CANA all just playing games

The bid has been 27p for so long now, but the chart going up and down is purely these jokers messing with the offer price........all they can do is move it up and down in the range locked by SEYP.

250K Protected buy at 30.5p has taken some of the overhang, but SEYP still on 27/33, so should be overhang still there.

Still say it, watch SEYP for any movement, today, no movement from them.

Might be worth watching on line buy/sell limits, SEYP now up to 28p bid, L2 4 v 1 @ 28/33

Limits changed

Buy 3.75k @ 33.76p
Sell 10k @ 31.36p

Looks like we've turned the corner.

I think its been leaked that the PDN deal will be debt funded, the shorters are now in a panic as they cannot get the shorts covered by new equity at low prices :)

Good, burn them :)

It has been a good day, papalpower ... I agree...the shorters are in a fix now... crucify them!

At last some good movement as I bought these at 58p and 62p. I've been in a sea of red for over 3 weeks now but I've kept the faith. At least my DVS has cheered me up Friday.

Technotamed........."sea of red".....mines an ocean of red !!!This share,along with SEO is murdering me,but like you,I will continue to keep the faith.

Technotamed......in fact,SEO/ACC/CHP and TAG all read miserably for me.My only saver is ZYT !!!

25K buy at 40p today...............what was that all about ?? :)

Rising 2 days in a row...........somethings up ;)

L2 is 4 v 2 @31/37