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

Dominic, Indago is currently valued just shy of 9million. They still have some good assets despite recent setbacks. I have not held since the RAK deal last year because I thought the AJ1 well was too risky and the share price didn't reflect that level of risk. Now, I reckon it is fairly priced but not cheap.

I think it is probable that fundraising will be required. LDP recently raised 15mil and were oversubscribed, so the money is there if the business case is good enough. Dilution is more likely than an increase in debt.

On the positive side, the insurance from AJ1 may provide a valuable bonus for the company. Once that is finalised, it may be time to reinvest.

So in short, it's gone down a lot and there are better options out there at present, however if you were to stick with it, in my opinion it won't drop much further.

Tanks ValueMax, I'd really like to hear from them now what is the plan and where they are going to move from here...

Operational
- Exploration wells on Jebel Hafit and Adam prospects curtailed following operational problems.
- New data indicate that the Al Jariya-1 well at Jebel Hafit penetrated the shallower Natih objective, which was water-bearing.
- Deeper Shuaiba objective at Jebel Hafit remains untested.
- Data from recent wells on Jebel Hafit and Adam still being evaluated.
- Indago and its partner, RAK Petroleum, have entered into new 3-year exploration term for Block 31.


Financial
- Indago and RAK insured for the underground blow out on Al Jariya-1 well.
- Underwriters made payment on account in respect of the costs of controlling Al Jariya-1 well.
- Around $25 million plus insurance contribution towards new well on Jebel Hafit anticipated to be available for future drilling campaign.


Outlook
- Indago's exploration portfolio remains prospective.
- Current exploration activities are focused on the deeper objective at Jebel Hafit and on Adam.
- New wells unlikely before mid 2009.
- Indago to consider asset or corporate transactions in order to diversify the Company's value proposition.

Interim Results RNS

ValueMax you're still here? :) So what do you thin so far? Did you get the impression that probably they may have someone with extra cash to help already or in advanced talk ?

Still here only to maintain the thread every once in a while. I've not held any since the RAK deal but have been keeping an eye on things to see how AJ-1 etc progressed.

I've no reason to think they've got anyone in particular lined up to invest but I think it is sensible to share the risk.

I also think we'll start seeing some takeovers in the oil industry in general over the last 3 months of the year. There are a lot of companies who've benefitted from the high oil prices and, with share prices now much lower than 3 months ago, there are some bargains to be had.