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

Wonder if they need to save money now for an extended testing programme at the ongoing JH-1 ??

Given the statements of being fully funded for the completion of the current exploration programme, what could have happened that they suddenly don't care too much about the next drill, and seem to require additional funds......

Don't ask me, I have rose tinted specs, so I'll happily be deluded to the positive and say they have perhaps got something exciting on JH-1, and now are aware of the need to pay for extensive testing......perhaps, fingers crossed, tempting fate etc......... ;) LOL



http://www.zawya.com/Story.cfm/sidZAWYA20080201084647/SecMain/pagHomepage/chnAll%20Regional%20News/obj2A17E941-F5E0-11D4-867D00D0B74A0D7C/


Indago opens block door

01 February 2008

UK-listed Indago Petroleum is inviting companies to acquire an equity interest in Block 47 onshore Oman in exchange for funding 100% of its costs of a well on the Adam prospect.

The block is operated by RAK Petroleum, which is owned by the government of Ras al-Khaimah, one of the seven emirates making up the United Arab Emirates. Rak and Indago equally share the block where they have shot extensive 2D seismic.

There will be a data room available in London to allow potential investors to make a more detailed assessment of the opportunity.

The data room opened on 28 January, with offers invited by 15 March.

My thoughts on IPL are that the offer of a farm in on the next prospect is a strategic move to ensure that if Raq was tempted to try to spin out the current drilling in order to make a then cash strapped IPL an easy target for buying the other 50% of the current drill prospect on the cheap, then IPL would be able to use its cash reserves allocated for that second prospect as a means of resisting any such move. Only my thoughts, but on the positive side you are never likely to find two arabs fighting over the ownership of a three legged camel with no hump!

Also, what better way of attracting interest in all of your assets by having them look you over for investment. I feel pretty sure that once the current drilling is finished, and hopefully successful, IPL will very quickly wish to sell either the block or the whole company. Raq would be an obvious contender but the current farm in process may mean that there are others equally keen to get involved - a bit of competition would do us no harm.

Oops!! Closed me small T last week! Chickenshit but....

http://www.investegate.co.uk/Article.aspx?id=200802040701261801N
cyril

Looks like some more delays ahead, got to get the drill string freed up. Worst case might have to come back to where casing ends and do a sidetrack.

But thats the fun of HPHTdrills...

A few more weeks delays then.

Ok so we have good signs ( gas&carbon dioxide) and bad sign salt water. Could anyone who knows more about drilling process tell what are possible scenarios ??

almost 50% down already, is that means that nobody believes that they can achieve anything from Block 31???

glad I only had a little punt on this one and closed my s/bet in profit.

won't be looking to punt them again, as they don't seem able to deliver
these are the risks with these exploration tiddlers, I guess.

The important thing to remember is they do not know where this water has come from.

a/ Has it come from a fracture higher up away from the drill head ? As in the High Pressure has caused a fault in the wellbore in the area from where casing was set to, to where the drill bit was when this happened ? The pressure is such that this can happen.

b/ Has it come from the a stringer in the Lower Fiqa formation ?

c/ Has it come from the target Natih Formation carbonates ?


Until this is clear, they cannot deduce anything. If its a or b then the integrity of the target is still good, and drilling ahead can take place once the problems are resolved.

If its c then potentially the first target formation is a duffer, the second deeper could still hold good, they will not know that until they drill further down to TD.

Mr Bolton using spread bedts? ..... surely not? ...... that's playing with derivatives and Mr B always claims to be a long term investor with all his holdings ..... if he thought this was a good little company, surely his investement logic would dictate to stay with it and ride out the bad times - see CRA thread!

Anyone think the drop in SP overdone?

See post #265.
I think the worst has been asssumed & therefore this level was forecast to be the outcome.

ah, mr clever dick he can spell names backwards cynic, what a bright chappie he is, obviously can't put the wool over this fellas eyes, he is on the ball, yessireeee!!!

Ever heard of investment and a bet on the side? obviously not!

I've no idea if IPL was or is a good little company or not, and I have never pretended to know.
But it seemed a reasonable bet, is that ok with you?

That situation is completely different to , for example, CRA, where you post such rubbish as 'certain plateau' with your five minute attention span.

Which ever way you look at it - it's a duffer!

Bad news today. I've updated the header.

I tried to buy late on but MMs weren't offering any online which seemed strange as you could buy 50000 for most of the day. I feel this has been overdone, it's not their only well and they have a half share. I'll dip my toe in in the morning as i feel there may be a decent bounce back. Suspect the 2 big trades around 4pm were buys as this was about the time MMs stopped any online buying.

closing market summary:

"Dog of the day belonged to Indago petroleum (LSE:IPL) which saw its shares plunge after it announced one of its project wells in which it has a 50% interest had encountered problems and needed further testing. The shares lost 65% of their value with some traders questioning whether the news warranted such a large fall given the company has several other promising projects"

Valuemax, so that iis the reason tthat tthhey arre llooking for investors for otther assets, they just affraid that this 54m cash from june is not enough, ???

Not in this one, but it seems that with this market : it only needs a little bit of doubt for stocks to tumble, VAN, this one and ITM !

So i presume this has fallen well below cash value? How many can one usually buy on a normal day? Will be interesting to see how many shares are available for trade. Don't understand why they wouldn't allow any buying near the end, it's unfair imo to drop a stock so much and then not allow punters to nip in. Pity it's not on SETS as DMA traders could have bought.