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

Just playing with some figures for fun, they could well be wrong and so any suggestions welcome.



The companies cash position at 30th June 2007 was 54m US$. The companies cash position at 31st Dec 2007 was 41m US$.

Therefore the company overheads and drilling costs for 6 months of AJ-1 was 13m US$.

Thats a handy figure to know.

This works out to be therefore 2.16m US$ a month whilst drilling, so inflation etc.. lets say 2.5m for 2008.

Admin alone is circa 550K US$ a month in 2007 so lets say 600K US$ in 2008

Company was drilling only for 1 month in 2008 before blowout. All costs for blowout and also later remedial work coming from insurance.


Cash position :

1st Jan 2008 = 41,000,000 US$

Take off 1 months (Jan) admin while drilling = 38,500,000 US$

Take off 3 months (Feb/Mar/Apr) admin only = 36,700,000 US$

Take off 4 months (May/Jun/Jul/Aug) admin while drilling = 26,700,000 US$

Take off 2 months admin (Sep/Oct) = 25,500,000 US$

Take off 2 months admin while drilling = 20,500,000 US$

Take off 5m US $ as contingency for Zad-1 into production.

End of 2008 year should be circa 15.5m US$ cash balance with a producing asset coming on line (fingers crossed) - and hopefully, toes crossed as well, AJ-1 finished and the answer known as to whether there is a massive gas and condensate reservoir under Jebel Hafit.

Thats interesting figures PapalPower thanks

Indago Petroleum Ltd - Drilling update
RNS Number:2004T
Indago Petroleum Limited
28 April 2008


Indago Petroleum Limited
(AIM: IPL)


Drilling Update


Indago Petroleum Limited ('Indago' or 'the Company'), the oil and gas
exploration company exploring onshore the Sultanate of Oman, announces a
drilling update for the Al Jariya-1 well, located on the Jebel Hafit prospect in
Block 31, adjacent to the border with Abu Dhabi.


Following press releases made by the Company and by the Operator RAK Petroleum
PCL on March 28th 2008 regarding the status of the subject well, work has
continued on the attempt to remediate the well and prepare it for a possible
sidetrack. A cement plug was set across the open-hole section below 4591m as
planned. The operation proceeded using free-point logs which identified 2668m as
the point below which the drillstring was stuck. Subsequent recovery of drill
pipe could only be achieved from above this depth. This situation precludes any
sidetrack operation from below this 2668m level and a sidetrack from above this
level is considered to be neither safe nor technically feasible. Consequently,
there is no alternative other than to plug and abandon the Al Jariya well. This
operation has been approved by the Oman Ministry of Oil and Gas and should be
completed during the next few days.


Following consultation between the joint venture partners and the Ministry, and
in accordance with the previously announced plans, the intention is to now move
the Nabors 103 rig to the Zad location on the Adam prospect, on the adjacent
Block 47, and to drill that well starting in late May 2008. Whilst that well is
drilling, the joint venture will progress its insurance claim for the loss of
the Al Jariya well and fully evaluate the practicality and cost effectiveness of
re-drilling the Jebel Hafit prospect. It is likely that the order time required
for long lead items will preclude the possibility of drilling a new Jebel Hafit
well immediately following the Zad well and, therefore, such a re-drill would
probably not commence before 2009.


As described in the Operator's press release of March 28th 2008, technical work
indicates that the prospectivity of the Jebel Hafit structure remains
substantially undiminished, most certainly at the deeper Shuaiba (Thamama) level
which is estimated to hold the majority of the prospective resources.


David Bremner, CEO, commenting on today's announcement said:


'Clearly the loss of the Al Jariya well is a huge disappointment for the
company and our shareholders. We intend to pursue vigorously all avenues open to
us to get Jebel Hafit re-drilled in as short a time frame as possible. In the
meantime we believe that the imminent drilling of the Zad well on the Adam
prospect should hold considerable interest for our shareholders. Adam is a
moderate risk prospect targeting significant gas and gas condensate reserves in
close proximity to existing infrastructure. The target reservoir in the Zad well
is shallower than that in the Al Jariya well and, as the hole will be vertical
as opposed to deviated, our hope is that it will be drilled without significant
problems. The well is programmed to take around 100 days from time of spud.
Irrespective of the insurance claim and despite the cost overruns associated
with Al Jariya, Indago is well funded to drill Zad which is the final well in
the originally planned three well exploration programme.'


Indago holds an approximate 50% interest in Oman Blocks 31 and 47. The Operator,
RAK Petroleum PCL, holds the balance of the interest in each case.

Oh dear.

Only really 'oh dear' if the insurance claim does not succeed. Provided it does that would make this just another delay - not unusual in the oil business. Disappointing though - waiting until 2009 seems a long time.

From what I can glean this is more a matter of a delay provided the insurance policy answers up on all counts - and there should not be any reason it doesn't as it was a typical blow out insurance and this was a blow out. Any redrilling would likely cost less than the $55m of the first drill through better knowledge and this time rather than retro-sleeve it would make more sense to use that experience of the first drilling and drill a larger bore from the start so that it would cut out the need to drill and ream. That would be significantly cheaper and faster because it would be a single operation - 2/3rds the cost maybe?
The ZAD prospect is reckoned to be a more straightforward vertical drill so hopefully it will be relatively easier and quicker to re-gain some of the lost ground.

.

Something afoot ?????

As an aside, I think the MM's are a little short of stock, thats why the late reported sub 23p trades are coming through, give the impression of some selling........LOL :)


On line limits are :


BUY 1K @ 24.88p

SELL 25K @ 23.66p



L2 is 4 v 2 @ 23/25 with just CAZR and LAND on the offer.

Maybe the insurance issues have been sorted?

http://boards.fool.co.uk/Message.asp?mid=11048441

Paul's write up of IPL over at TMF. Worth a read for his opinion, and some details on the potential insurance claim values.

very interesting, I was thinking also to increase a bit.....

Well, you cannot knock the guy, according to the RNS of late yesterday he has also purchased over 3% of the company. Thats as they say, putting your money where your mouth is.


Evil (SC) has been buying too.

It appears in the t1ps.com diary entry according to a post on another site.

"I am also advised that Indago Petroleum (IPL) is a buy. I could only get 75,000 at 24p yesterday. But, on a betting perspective, anything below 40p is a good punt for 2008."

With reference to the talk of ADNOC ( [url=http://www.adnoc.ae]http://www.adnoc.ae[/url] ) who have the other half of the potential Jebel Hafit structure on the Abu Dhabi side it would seem to us layman the ideal way forward now is a farm in.

(Background : The structures under Jebel Hafit, first target Natih circa 20% of potential 2 billion boe, second deeper target Shuaiba circa 80% of potential 2 billion boe extend across the international border between Oman and Abu Dhabi. It has therefore been assumed that 1 billion boe is on the AD side, and 1 billion on the Oman side - RAK/IPL own the license for the Oman side)

Given the knowledge gained from the AJ-1 drill, it would make sense for all three parties to now work together (ADNOC and RAK/IPL).

An easy way might be for ADNOC to farm in 50% of the Oman side, and RAK/IPL farm in for 50% of the Abu Dhabi side on simple swap basis. They all share success if that happens, and retain their present percentages. If the drill fails they all fail, but only need to drill one well between them all to find out.

This would allow IPL to test this structure but only pay 25% of the costs via the first drill of perhaps only one drill in the event of failure. Seems to be win-win all round, now that more knowledge is there after the AJ-1 failure.

According to information elsehwere, ADNOC wanted to farm in on the first drill, however wanted it to be on the AD side (as in IPL/RAK farm in to their drill), but IPL had to drill on the Oman side to comply with the license terms. Given the requirements to start drilling in Oman, this farm in did not take place.

Now that IPL/RAK have so much geological data from the drill, know what is needed to get to over 5000m, and have so much more information on the Oman side, perhaps ADNOC will now farm in to a drill on the Oman side, it will be a very cheap way for them to test the formation.

So yes, perhaps that might be one way in which testing this structure is done in 2009.

well I'm not surprised, You knew and many others that this company is still showing great future for investors, I'll try on Monday:)

Being a holder, I would dearly love to see Indago hit a commercial find at Zad-1, not only for the obvious, but perhaps then we will see what appears to me to be the business case for IPL coming through for all to see.

As far as I see it, RAK want to be developing proven finds on their own, but are happy to be exploring with reduced risk (eg the 50/50) with Indago. Indago now is a pure exploration play, with no desire to go about developing finds and putting them into production.

As was seen with West Buhka, it was sold to RAK, and RAK develop it. IPL have since that transaction said many times they are going to be focussed on exploration.

I think too many people have been exposed to too many far flung middle of nowhere type of explorations, where it takes years to put them into production and there is nobody else going to do it.

In this situation here I would hope we will again see, on a commercial find, RAK buying out the remaining 50% that IPL own, giving IPL instant cash, and allowing RAK to be the ones who develop the asset 100% on their own.

Those who think that IPL is going to develop the asset, I think they are mistaken, and you will see RAK buy the 50% out of IPL for the Adam prospect in the event of a commercial find.

This benefits RAK as their "exploration de-risking partner" then goes forward to test more and more prospects, which RAK can buy up on success, or write of just 50% costs on failure.

IPL was grossly undervalued in the past, prior West Bukha-2 testing, when I first started buying - and it paid back handsomely with the RAK purchase of those assets.

My comment would be do not think of IPL as a developer of assets, they should be, imv, a finder and seller, quickly realizing cash for their finds from their partner, and remaining exploration only.

For reference :


L2 is 2 v 3 @ 30/32 (SCAP/EVO and AMBR on the offer)



On Line Limits are :

BUY 15K @ 31.7p

SELL 25K @ 30.61p

Few changes :


For reference :


L2 is 2 v 1 @ 31/32.5 (AMBR on the offer)



On Line Limits are :

BUY 1.5K @ 32.5p (yes just 1500 at full offer)

SELL 25K @ 31p

Indago Petroleum Ltd - Posting of Accounts
RNS Number : 1734U
Indago Petroleum Limited
11 May 2008


Indago Petroleum Limited
('the Company')

Posting of Accounts

Indago Petroleum Limited (AiM: IPL) confirms that the 2007 Annual Report and Accounts and Notice of Annual General Meeting were posted to shareholders on 9 May 2008.

A pdf file of the Annual Report and a link to order a printed copy is available from the Investor Information section of the Company's website, at www.indagopetroleum.com, where the Notice of Annual General Meeting of the Company, taking place in
Guernsey on 9 June 2008, can also be found.

A copy of the Annual Report can also be obtained through the Financial Times Annual Report service.

12 May 2008

L2 is solid blue.

Just 1 MM unchanged today.


Now 1 v 1 @31/32.5 with just AMBR on the offer.

RNS Number : 0236V
Indago Petroleum Limited
22 May 2008

Commencement of Drilling

Indago Petroleum Limited ('Indago' or 'the Company'), the oil and gas exploration company exploring onshore the Sultanate of Oman, is pleased to announce the commencement of drilling of the Company's Zad well on the Adam Prospect ('Adam') in Block 47.

The well, which spudded on 20th May, is forecast to take around 100 days to drill and is targeting the Cambrian Amin Sandstone reservoir at a depth of around 4,250 metres.

Adam is estimated by the Company to have gross mean prospective resources of about a half trillion cubic feet of gas and substantial associated condensate. The Kauther Field, operated by PDO, is an analogue for Adam. Kauther lies some 45 kilometres to the south of Adam and came on-stream in October 2007 producing gas and gas condensate from the same Amin Sandstone reservoir.

The proximity of a major pipeline which runs through Block 47 to Muscat, the capital and largest population centre in Oman, is a factor that the Company believes enhances the chance of a discovery at Adam being a commercial success.

David Bremner, CEO, commenting on today's announcement said:

'We are excited to get the Zad well underway and expect a more straightforward operation than we had with our recent Al Jariya well. Whilst Adam is considerably smaller than the Jebel Hafit prospect, a discovery would be highly significant for Indago. It could also help achieve a critical mass for the development of other existing and future discoveries in the immediate area.'


Indago holds an approximate 50% interest in Oman Block 47. The Operator, RAK Petroleum PCL, holds the balance of the interest.

22 May 2008

Enquiries:
Indago Petroleum Limited
David Bremner, CEO + 1 805 708 4892
Martin Groak, CFO +44 7949 209 301
Tim Eggar, Chairman +44 7771 597 499

JPMorgan Cazenove Limited +44 20 7588 2828
Barry Weir
Neil Haycock

Nabarro Wells +44 207 634 4705
Marc Cramsie

College Hill Associates +44 20 7457 2020
Nick Elwes
Paddy Blewer

Website: www.Indagopetroleum.com

Notes to Editors:

Indago Petroleum

Indago Petroleum Limited is an oil and gas exploration company listed on the AIM market of the London Stock Exchange. The Company is geographically focused in the Middle East, currently exploring in the Sultanate of Oman, a politically stable country with proven hydrocarbon reserves and an active gas market.

Following the disposal of its production and development assets and just over 50% of its exploration assets to RAK Petroleum PCL ('RAK Petroleum' or 'the Operator') in April 2007, Indago currently has an approximate 50% stake in three exploration blocks onshore Oman (Blocks 31, 47 & 43A) operated by RAK Petroleum.

Review by Qualified person:
The technical information and opinions contained in this press release have been reviewed by Don Scott, a qualified Geoscientist (BSc (Hons) Geology - Southampton 1963, MSc Applied Geophysics - Birmingham 1964) and a Fellow of the Geological Society of London since 1964.