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

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?

The suggestion on the Advfn board that IPL have to cut the string to the drill bit and then do a sidetrack drilling to make progress is a last resort measure. It is much more likely that a small explosive charge would be use to free drill bit prior to an evaluation of how to proceed (or not). The odds must be in favour of proceeding with the drilling since it seems unlikely that the structure that had the high pressure salt water was the shallower of the two structures that they are aiming at because a) it was shallower than the targetted depth and also the water pressure was apparently not sustained.

Thanks Sharesure for the update, lets hope they can correct the problem and recommence drilling

sharesure,,i picked up 30k today.

trots,well well...

Oh dear, hermana is here.......this can only be a bad sign going forward...... :(

Papa,was here! Turned this one last week before the salty RNS.

The stuck drill bit evaluation process seems to be taking longer than might be expected to sort out but is indicative that at some stage not too far off drilling will resume on this prospect. Not a share for traders with those indeterminate timescales but for everyone else prepared to wait (and at these levels, add!) this still represents a worthwhile prospect.

Bit of life in the old dog then today.

The volume doesn't suggest anything too much just yet; pretty certain that there will be an announcement on the resolution (or otherwise) of the stuck drill bit and where Rak goes from here within a couple of weeks - unless they wish to surprise everyone?

I think they just cant free this drill as fast as we all want to see