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

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.

We the smaller investors are possibly pawns (or shall I say prawns) in a big man's game !

Give it two more days, our emotional newly found posters will have gone, and normal dicussions can resume.

Well, estimates of a fall to the high 20's on bad news were correct, so that was proven to be correct.

As far as the well goes, after remedial action with the drill string is done, it then remains to try to work out what was the cause of the salt water influx. A "stringer" would be good news in some respects, as at least the target Natih formation would be viable, just its going to be a little more difficult to get to TD.

I have not bothered to sell, given most of my holding is "free riding", there is no point given the potential upside from Zad-1 and H-1

Makes IPL an even more interesting bet now.

If its just a stringer, then at 30p, if they continue on to target and get a result, you'll have over 30 times upside.

If its the Natih thats producing the water, and they decide to P&A, you've still got Zad-1 and H-1. Zad-1 is 140p unrisked upside, and 47p risked.

One would suspect the farm down of Zad-1 is therefore to gaind the funds needed for the H-1 horizontal recompletion.

Their present cash pile will be reducing all the time, and you have to assume that once the Zad-1 well is drilled, on top of this ongoing well, then funds would be insufficient to drill the H-1 recompletion and have enough for day to day running.

The Times reported the cash position today as around 31p/share. The current problem of the salt water could be that the drill encountered a blister in some limestone above the first target or that it was in the target itself; as has already been posted if it is the former it then remains to try to free the drill bit by putting a charge around it. More important is whether after Rak has assessed the situation they have the stomach to carry on, with the risk of more costs and setbacks.
As for the farm in on the drill prospect which is planned after this being looked at, apparently if IPL could acheive a carried interest there are other opportunities for drilling after that.

Either cut your sustantial losses or go for broke!

I'm staying put.

This has all the making of another VOG situation, could go either way !

Perhaps I should change the thread title to something more appropriate

AJ-1 is now valued as a dry well. SP of mid 20s covers cash position plus remaining assets. However, wrong time to buy here until sentiment changes.

Not yet - this drill bit may yet be freed and then after evaluating the cause the difficult decision of whether to go on or abandon. A safe solution if it was available is a smaller but fully carried interest for IPL from here on but maybe Rak would not agree to that.

no stopping this although it has fallen best part of 70% last few days, could be a quick 25% in this.

Whilst the risk of JH-1 being a write off has increased from high risk, to extreme high risk, people are forgetting that Hamawel-1 has struck proven hydrocarbons, and a horizontal should free them.

And that Zad-1 is potentially worth near 50p a share risked, and up to 140p a share unrisked (as it stands now with no farm out).

For those who like a gamble its sure offers an exciting ride. imv.

My apologies for mistakes earlier, I had said the first target starts at 5200m, this is not the case.

Actually their first target starts at 5400m, it was the Natih Formation that starts at 5200m.

Their first target is in the Natih, the second is in the Shuaiba formation.


The seal formation is "Kf" this is the Fiqa.

The first target is in the Natih "Kn"

Next down is the Nahr Umr Formation "Knu"

The second target is the Shuaiba Formation "Ksk"









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Looks to be well on the move today,,,,,,,, some news perhaps

Anyone know if the drill bit has been freed and that that is behind this regaining of composure in the sp or is it just correction of an oversold position or anticipation of a resolution?

Bottom fishing, hoping for a bounce maybe?

Dead cat variety?