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
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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
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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
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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

A buy at 65p towards to the end, should be opening strong on Monday then.

With a large buy at above the offer in the afternoon, should be strong next week. Amazing thing with TAG is that any buying volume, given the very small free float, will make it move upwards fast, Friday was only 70K buys and it gave an 8% rise. When the news comes on 3X flow rates, if its good (and I do not see any reason why not), you can imagine what will happen, but also it does not end there, including the sidetrack due on 1X starting Feb, another 9 drills/workovers in 2006. Plenty of news and a growing oil production levels will be TAG in 2006, not just speculative, producing, and what should be, large amounts. Firmly beleive TAG is one to be in, and hold for the duration of 2006 (and 2007).

Fridays action below :

If you take the 2006 workplan above and put some figures into it, not pie in the sky ones, just normal ones given the low risk involved, and the price currently is showing nothing, not even 3X pending flow news. I have put some figures of where I think flow rates will be for the 2006 workplan as below

For Las Casas license
Into production Las Casas 3X (1000 to 1500 bopd)
Sidetrack of Las Casas 1X (1000 to 1500 bopd)
Drill of Las Casas 4X (1000 to 1500 bopd)
Drill of Huapec 2X (1000 to 1500 bopd)

For A7-2005 license
Workover of Atzam 2 (0 to 500 bopd)
Workover of Tortugas 4 (0 to 500 bopd)
Workover of Tortugas 5 (0 to 500 bopd)
New well 05-1 (1000 to 1500 bopd)
New well 05-2 (1000 to 1500 bopd)
New well 05-3 (1000 t0 1500 bopd)
New well 05-4 (1000 to 1500 bopd)


So my expectation is around 8,000 bopd output by mid 2007

Interesting set of figures Papal but i`m setting my expectations a bit lower than the 8,000 bopd you suggest possible.
I do wonder with such a busy work plan for 2006 if delays won`t be inevitable.

Having said all that i`m really looking forward to this share really taking off now ,it really has been overlooked ! Just looking at the number of posters on this thread compared to other oil and gas threads proves that.

Squidd are you still in these?
Haven`t heard from you for a while.

DB66 I hope my figure is low compared to actual :) I am basing some of this on old reports on the A7-2005 license, which TAG has now officially been awarded. I have discounted the workovers down to 0-500 due to ageing.

Old info is :

"The A7-2005 has 84,778 acres and two anticlinal structures where 10 wells had been drilled in the Tortugas structure. The first producing well, Tortugas 63-4 yielded in an initial test 1200 BOPD of 34 API crude. Two wells were also drilled in the Atzam structure and the well Atzam-2 produced in an initial test 1200 BOPD of 38 API. The total estimated remaining proven reserves for the entire era is in excess of sixty million barrels."

I topped up in the dark days during the Autumn and so am sitting on a goodly pile of TAG in anticipation. Have since continued bottom fishing, focussing on sickly looking stocks such as APA & PMK. Will comment further later in week, but meanwhile am grateful to PpP for keeping the faith and the excellent newsflow.

squidd
what I like about PP is that he actually seems to understand the companies he writes about.

coeliac1 I try my best, but what happens at the higher levels of corporate in any company, who knows. so at least if we can understand whats happening at the visible levels, it stands us in good stead.

Well no fireworks today then! i must admit i`m a bit disapointed that we didn`t even get a tick up on the SP given how Friday ended.
Oh well maybe tomorrow?
DB66

Patience is a virtue DB66, as in this quote from the biography of Warren Buffett :

"At eleven years old, he purchased three shares of Cities Service Preferred at $38 per share for both himself and his older sister, Doris. Shortly after buying the stock, it fell to just over $27 per share. A frightened but resilient Warren held his shares until they rebounded to $40. He promptly sold them - a mistake he would soon come to regret. Cities Service shot up to $200. The experience taught him one of the basic lessons of investing: patience is a virtue."

PP & db66

Thanks to PP for putting this excellent though quiet thread together. Very informative. As you know, only approx 4.5M shares in public hands at this time. Just tried to buy online and no shares sloshing around, had to go through the Trading Desk to place my order (albeit relatively small) so would think that any future positive news will have a significant effect upwards, unless the MM's are holding on until that time on purpose.

I will try to be patient, and although no fireworks today no selling either, thus far.

PapalPower,
You are an energy investor obviously, are you into uranium?

What do you think of UEP's latest news release this morning?, also they intend to purchase an oil / gas prospect in kazakhstan and some of major shareholders have recently raised more money to maintain there interests in investments, it maybe coming soon.

jimbobGR just in after a busy morning, and looking around todays trades and posts, so will take a look later today at UEP.

silvermede, a lot of potential on TAG, and one I am sure will be very much higher at Christmas than it is now.

Your right about being patient Papal that is one lesson that i also have learn`t the hard way.
I know i haven`t been in Tag long but it feels longer because i have followed it since you started the other thread.
I`m a bit surprised that the SP hasn`t moved up a fraction given the trades are all buys so far today.
Also it is nice to see some other people on here and agree with silvermede and coeliac1 comments about your research.

DB66 too many people are trying to chase quick profits, its the same old same old temptation of get rich quick, all they end up doing is losing their money by buying high and selling low, so best to find some stocks that have good potential and stick with them, through thick and thin :) Its the safest way of making money :)

Things look even now, so another buying day tomorrow should see a mark soon, this week or next.

Some positive buying volume again today

Good news is coming ;)


Colombia Approves 8 New Oil and Gas Exploration Contracts

Archived Story
by Inti Landauro
Mon, Jan 30, 2006 20:55 GMT

BOGOTA - The Colombian National Hydrocarbons Agency said Monday it had approved eight new oil and gas exploration and production contracts and five preliminary contracts of 2006 for a total of $38 million in investments.

The ANH, as the agency is known, boosted the negotiations of such contracts as part of an effort to encourage the discovery of new hydrocarbon reserves.

The Australia-based mining company BHP Billiton LTD (BHP) secured two areas of about 475,000 hectares each in the Caribe Offshore basin. The company plans to spend about $13 million in each areas during the next six years, the ANH, said in a statement.

The ANH also granted rights for exploration to Occidental Petroleum Corp. (OXY) in an area called "Cascabel" in Magdalena river basin. The exploration program will last 4 years and includes a commitment to invest $1.9 million in the 46,000-hectare area.

Hocol SA, the Colombian unit of French oil company Etablissements Maurel et Prom SA (5107.FR), committed to invest $6.3 million in exploring two areas in the Llanos basin in the Andes foothills.

London-based Taghmen Energy PLC (TAG.LN) secured the Midas block, which is located in the Magdalena river basin. Taghmen's exploration six-year program includes a $1.5 million investment.

Canada-based Apex Energy Energy Inc. also secured the rights to seek oil and gas in the Magdalena basin. Apex committed to invest $1.1 million during four years.

Finally, Colombian company Competrol committed to invest $199,000 in exploration in the Chicuaco area of the Llanos region.

In addition to these contracts, Russia's largest oil producer, OAO Lukoil Holdings (LKOH.RS), Occidental Petroleum and Spain-based Compania Espanola de Petroleo SA (CEP.MC), London-based Texican Oil PLC and state-owned Colombian oil company Ecopetrol (ECO.YY) all secured rights to carry out preliminary evaluation - a step before formal exploration - for five different areas in the country and committed to invest about $1 million.

The ANH had signed 31 exploration and production contracts in 2005, more than the 30 originally planned last year.

The administration of President Alvaro Uribe hopes the new contracts will lead to the discovery of new oil reserves. If Colombia fails to find new reserves, the country will become a net oil importer by 2011, said National Hydrocarbons Agency Director Armando Zamora in November.

Vast territories, potentially rich in hydrocarbons, remain unexplored in Colombia, which shares many of the geological features of its oil-rich neighbor, Venezuela. The Llanos and Magdalena basins, in particular, may have significant reserves.

According to the Finance Ministry, average oil production may have increased to 519,350 barrels a day in 2005 from earlier estimations of 510,000 b/d, after the government approved several actions such as extending association contracts due to expire and ensuring that international companies maintain investments until wells are so depleted that they are no longer commercially viable.

2006 Dow Jones Newswires.

At a guess we will get an Friday RNS about the new license and also that a wedge of shares have been issued to one of the larger institutions, and then next week we should be looking at some decent rises. Watch this space ;)