Web Site : http://www.indagopetroleum.com

Asset Summary:

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Hafit: The target is estimated at 1 billion boe RECOVERABLE on the Omani side (with another 1 billion boe on the Abu Dhabi side).

Oman Block 31 (50% Indago, 50% RAK Petroleum)
Jebel Wa'bah. The technical evaluation is ongoing with new seismic having been obtained during the past year.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Adam prospect . The estimated target is 140 million boe RECOVERABLE

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Izz prospect (Hawamel well drilled end 2006 with gas interpreted as being in place, but in a tight formation. IPL are contemplating a horizontal section to produce the well at a later date). The target is estimated at 60 million boe RECOVERABLE.

Oman Block 47 (50% Indago, 50% RAK Petroleum)
Dham, Sadood, Kabshat. In 2007 the acquisition of 362 km of 2D seismic in Block 47 was completed. This survey was focused on the Dham, Sadood and Kabshat leads. The technical evaluation is in progress and may result in the promotion of one or more of these leads to drillable status.

Oman Block 43a (50% Indago, 50% RAK Petroleum)
A seismic acquisition campaign was concluded during 2007. This encompassed the acquisition of 225 km of 2D seismic in the Block, including over the Kahal lead.



Thread started 23/10/2008 @ 11p

5

Welcome all.

Presently on here we await the "Insurance Payout" news from the insurance in place on the last drill.

Hi Proslenes, what made you start this ???? I was sure that everybody abandoned this company...

Nothing is going to happen for a very long time, but at least the thread is started well ahead of it.............

The original IPL thread is here: http://www.moneyam.com/InvestorsRoom/posts.php?tid=10755#lastread

RNS Number : 9328G
Indago Petroleum Limited
29 October 2008

INDAGO PETROLEUM LIMITED

Notification of Interests in Shares

Indago Petroleum Limited ('the Company') was informed on 28 October 2008 that, following a purchase of 730,000 shares on 27 October 2008, The Rule Family Trust has increased its total shareholding in the Company to 2,500,000 ordinary shares of USD0.0005 each, representing 4.69% of the Company's issued share capital.

Enquiries:

Indago Petroleum Limited
Martin Groak, CFO
+44 (0) 20 7096 3461

Ambrian Partners Limited (Nomad and Broker)
+44 (0) 20 7634 4705
Marc Cramsie


College Hill Associates
+ 44 (0) 20 7457 2020
Paddy Blewer
Nick Elwes

From a post on AFN (which goes nicely with the latest holdings RNS of the Rules buying lots more IPL) :



merovingian - 30 Oct'08 - 13:56 - 2899 of 2900


I am taking the liberty of reproducing below the full text of an interview with Rick Rule which landed in my email today from a foreign publication I am subscribed to.

It's of great interest and comfort to us shareholders in Indago to have Mr.Rule described as 'the world's top commodity investor'. Needless to say, he knew exactly what he was doing when he recently built up his 2.5 million share stake in IPL.

Hopefully not long till this share gets the re-rating it fully deserves!

regards,
merovingian






An Interview With the World's Top Commodity Investor

Porter Stansberry's note: The following text is a transcript from a phone call I had last Friday with Rick Rule, the founder of Global Resource Investments Ltd.
Mr. Rule is one of the world's top investors. He's a 35-year veteran of the small-cap resource sector... and he knows more about these stocks than anyone else in the world. These are super-volatile stocks where, if you know what you're doing, you can make huge amounts of money. Rick tells us where the best opportunities are developing in the interview transcript, below...

Porter Stansberry: I think the most the crucial question, at least for me, is the big picture. How long do you think resource asset prices will fall in this bear market?


Rick Rule: There's going to be a very interesting tug of war. On the lower side will be, I think, rapidly declining developed-nations demand. Meaning recession in the United States and Western Europe. And on the other side is going to be, I think, steadier emerging-market demand than many people think. Simply because the developing countries' balance sheets are better than we are accustomed to.

I think the very sharp moves down in commodity prices are over. I think that those sharp moves down were not a reflection of fabrication in consumer markets. But rather, [they were] a function of financial players that were involved in the new carry trade involving low U.S. dollar interest rates where people were going long commodity, short the U.S. dollar; a trade that worked for a year and unwound very, very, very aggressively. So I think the sharp down move that we've been through is in some part over. I think it's likely to be replaced in the base metals by a grinding move lower. It probably will not be particularly deep but maybe four to six months longer in duration.

Porter Stansberry: Does this bear market remind you of any other particular bear market? I understand all these things have a lot in common. But I just wonder if this is particularly reminiscent of anything that you can specifically remember.

Rick Rule: No, it is not. First of all, the synchronicity of this decline proves to me we truly do have a global economy. The fact that the Russian capital market, the Chinese capital markets, the emerging markets, the developed markets all came off in tandem. I was going to say it was impressive. It was terrifying.

Porter Stansberry: To a large degree, the U.S. housing market became the financial foundation for so much of the world's speculation.

Rick Rule: I think that's partly true. I think the other thing is the U.S. financial model that is banks that didn't have any equity. As I understand it, the Icelandic banks that failed had balance sheets 10 times the size of the domestic economy of Iceland. That's impressive... I think you're at least half right in the sense that the asset class that bothered the banks and particularly the part that bothered the wholesale banks in the overnight market was securitized U.S. housing assets. You know, we are inclined to think that banks are places that have money. It sort of bemused us to find out that wasn't true.

Porter Stansberry: We've talked about how much longer you think this bear market can continue. What about in terms of magnitude? How much farther do asset prices have to fall to catch up with stock prices or vice versa?

Rick Rule: That's a difficult question because that assumes the TSX Venture market is made up of companies primarily engaged in natural resources. It is primarily made up of companies that didn't have any hope at all in a good market, never mind the bad market. So in that context, you are going to watch, I think, as early as six months from now, that market bifurcate where 5% of the companies, which are really good companies, begin to move up in a stealth bull market, while the rest of the exchange continues its march toward its intrinsic value, which is zero.

And I think you're going to see the TSX Venture exchange itself be in a grinding bear market that is probably going to be four years or more in duration. In that regard, it will resemble in some fashion the 1998 to 2002 market, which of course was devastating in Canada. From the point of view of prudent, discerning players, you know how I play the game. The 1998-2002 market was absolutely spectacular for me. And I think people who understand this market will do very, very, very well...

With the exception of zinc, the pricing structure in every industry that constitutes a major sector in resources is solidly cash-flow positive from an industry basis. So that's a very different set of circumstances than we saw in 1998.

The second set of circumstances that's different is, when we came into the '98 to 2002 downturn, it had been preceded by two good years but not good enough years that the industry had the ability either to come into the downturn with a lot of cash or to have allocated a lot of capital productively beforehand. In this particular case, we are coming into a set of circumstances where the industry had three or four extraordinarily good years and billions and billions and billions of dollars were raised and a little bit of it was intelligently deployed. Meaning that we are coming into a downturn where a few companies have had the ability to spend an awful lot of money wisely.

What's important about that is, we're in a market that rose indiscriminately with the lousy companies rising as well as and, frankly, better than the good companies because they were good at telling stories. And the counter-trade to that is that the good companies are falling in price with the bad companies. So the opportunity, of course, will be to search among the dross, which is most of the listings, for the companies that have employed large amounts of cash intelligently and are selling at stupid discounts.

The other differences between this downturn and the last downturn are more financial. An outcome of this crash will be profound in ways that didn't exist then.

The American public is going to want scapegoats for this and lots of guys in New York are going to go to jail. And that is going to scare participants both in capital markets and among the issuers in a way that they didn't get scared in 1998. It's going to be very, very, very unconducive to commercial trust and normal business transactions.

The second thing I see going forward is there's going to be an incredible profusion of regulation, none of it useful. All of it increasing the costs of public company business. It's worth noting, as even Buffett has noted, that the Sarbanes-Oxley "protections" that were put in place as a consequence of Enron cost public companies $100 billion a year. Meaning that Congress institutionalized a loss to the economy on an annual basis that's equivalent to the amount lost by shareholders of Enron on a one-off basis. I think the penalties of excessive regulation on the market not just the resource market, but all markets will increase.

The third factor I think will be different is there will be a much more aggressive Chinese wall between the investment banks and commercial banks. Which means that both debt and equity, at least for the next two years, will be much less freely available than would have existed in a situation where there was more cooperation between both sides of these big banks. And I'm talking about on both sides of the border. I don't think there's going to be any particular difference between the set of circumstances the Bank of Montreal faces and the situations that are going to be faced by JPMorgan Chase, as an example.

Another difference is, the recovery from the last down cycle was lead by hedge funds. And I think, both in terms of number and size, the hedge-fund industry for a long, long, long period of time is going to be very different. So a recovery, when it occurs, or support in a bear market, is not going to come from the financial services industry or from aggregations of financial capital. It's going to come rather from the mining and oil and gas industries.

The last two points are probably self-evident, but I would suspect the appetite for risk on a global basis is greatly, greatly, greatly diminished, which will of course impact the speculative premiums paid by financial investors in speculative markets.

And the last way in which this is different from the last cycle is that credit markets on a global basis are truly broken. I guess I don't need to tell anybody that. But the idea that for the next two years at least, a smaller company is going to be able to get a project financed, to move a project forward, and to be able to grow internally within its own vehicle... is highly unlikely. To the extent that financing is available to build big projects, the bank will take a charge against the project. But the issuing entity is also going to have to take and guarantee that project with its own balance sheet, and it's going to have to have a balance sheet that's capable of making that guarantee. All of this, by the way is very, very, very healthy.

Porter Stansberry: All these things in the long run mean higher commodity prices.

Rick Rule: Of course, the barriers to entry got much higher. When I say all of these things are healthy, that is with the exception of the stupidly increased levels of regulation, which is a permanent and useless cost.

Porter Stansberry: What's the risk that the assets in the ground, which were thought to be worth $700 million a year ago and are now worth maybe $150 million, will get much, much cheaper? I personally think this is this the kind of bear market that's eventually going to let you buy huge projects for $50 million or $25 million in a year or two.

Rick Rule: With any luck.

Porter Stansberry: I know you don't know the future, and you're famous for saying you don't have crystal balls. But I wonder what your instinct is. Seems like the bust in any given market is normally correlated to the boom. And this was a huge and speculative boom in both finance and commodities.

Rick Rule: That's a very good point, Porter. But what you need to understand is that mostly the boom had nothing to do with reality. In a bear market, you have to liquidate mis-investment. In this market, you already have liquidated a lot of the mal-investment.

It wasn't like in a period where we raised $12 billion or $15 billion for exploration, and we spent $12 billion or $15 billion intelligently and developed a $25 billion net-present value pipeline of projects. Mostly what happened is we raised $15 billion, and we wasted $11 billion. So we have to work off a pipeline of only $4 billion not $25 billion.

Porter Stansberry: So you're saying you don't expect commodity prices to go a lot lower and stay low for a long time because there will be demand from the emerging markets and there haven't been enough good new projects developed.

Rick Rule: Exactly. And what's happening in the western world is, there are so many barriers to entry for building new projects, the new project supply will be artificially constrained.

Porter Stansberry: Given your outlook for a relatively short bear market how much of that cash will you hold in reserve for the risk that you have the opportunity in five years of writing those save-the-company checks for almost nothing?

Rick Rule: In terms of cash that I have now, the probability I will conserve it for five years to write checks is nil... I mean this is a period right now where it's very important everybody be very honest with themselves about the mistakes they've made thus far. You bought a stock for five bucks that's selling at 50 cents. Doesn't matter that you paid $5 for it. The stock doesn't care; the market doesn't care; the guy who sold it to you doesn't care. So the first thing that you do is you optimize your existing portfolio. I expect that you are going to see the better companies in this market, which is a very, very, very tiny minority, begin their up-cycle in June, July, and August of next year. But I think that what people don't recognize is that the number of companies that are truly viable among the juniors is so small, it isn't going to feel like there's even a stealth bull market underway. It's going to feel like there are a couple of anomalies. They won't be anomalies, in fact. The market is going to segregate qualitatively but it's not going to feel like that...

But there are still places in the world that have a substantial amount of capital that didn't go away. In particular, the Middle East still has an awful lot of spare liquidity. And China has an awful lot of spare liquidity. China, in particular, I think, will continue to emerge in the next 18 months to two years as consumers of high-quality resource assets.

And I think one of the realignments you're going to see is emerging-markets banks become more important providers of credit for resource projects. When those emerging-markets banks develop the underwriting and analytical capabilities to do it, which they don't have yet, you're going to see a move away from the British, German, American, and Canadian banks toward emerging-markets banks. And you're going to see a lot more credit provided to projects in conjunction with off-take agreements or some mechanism for securing the flow of raw materials to markets who perceive themselves to be short of raw materials. I think that's going to be an important theme going forward.

Porter Stansberry: Which metal has the most favorable supply/demand characteristics right now?

Rick Rule: Boy, that's hard. I would say uranium. You know the uranium market the uranium equities market has fallen extremely hard. And I was a real uranium bear.

Porter Stansberry: So was I.

Rick Rule: I would say we are a year away from being able to consolidate the uranium space. You know forget about the 500 juniors that tried. Take a look at the eight or nine that succeeded.

I'm a real, real, real energy bull. I think the oil price in particular goes not merely higher, but substantially high in the five-year term. What people are missing in particular in the oil market is that most of the world's export crude isn't controlled by oil companies. It's controlled by national oil companies.
And it's extremely important for people to understand this. These national oil companies, at least to a substantial degree, are not reinvesting enough money in the oil company to maintain their current production, never mind to grow their current production. That's very, very, very important. National oil companies in places like Iran, Venezuela, Mexico, and Indonesia are diverting cash flow from their domestic oil and gas industry to social expenditure. In fact, some of the diversion is used to lower energy prices. So they're encouraging domestic demand at the same time that they're reducing future supply.

What's important about the four countries I have named is in the three- to five-year timeframe, those countries will not be exporters. And currently, they supply about 25% of the world's export energy. If you take 25% of the world's export energy off export markets, with export demand growing at a reduced rate of 1.5% compounded per annum for five years, it's absolutely stupid what can happen to the oil price.
I won't even venture a guess, but I don't believe that if all four of those countries started spending money now to increase production that they could undo the harm that they've done by the spending constraints that they've imposed on their domestic industry in the last three years.

Porter Stansberry: That all makes sense to me. I don't know what side of the fence you come down on in terms of "Peak Oil" but I think a lot of the evidence for Peak Oil has been actually created by the mal-investment of the state oil companies.

Rick Rule: I think that's absolutely true. I think Peak Oil at least from my point of view at age 55 is an economic rather than a geological function. You'll notice gasoline prices are falling and storage numbers are rising. And the politicians are sort of flummoxed as to how that happened. Well, it happened because markets worked. People could afford less of it at $4, than they could at $1. And you know, from an economic point of view, this makes sense. From an economic point of view, Peak Oil is a function of price in the near term, not geology.

Porter Stansberry: In regards to oil prices, over five years, I can see your point. But, in the short term, I think the carnage is going to get a lot worse. What happens to the oil-sands companies, for example, if they have to shut down production because the cost of oil falls below their cost of production, which is around $70 on average?

Rick Rule: They'll get murdered.

Porter Stansberry: Even more so than they already have been?

Rick Rule: Yep.

Porter Stansberry: I agree completely. One last question What are you doing with your partners' capital these days? [Rick runs a series of private partnerships for high net worth investors.]

Rick Rule: We are very, very liquid here. We have a lot of cash as a percentage of total assets, and I would say my principal constraints, in terms of taking new capital, is I usually take capital on with the point of view that it will last me for a cycle and a half. A cycle and half is 10 years. At age 55, my constraints are more how much of my life do I want to devote to this than the availability of capital.

Porter Stansberry: That's a good question. How much more of your life do you want to devote to this?

Rick Rule: I think it's very fair to say I've been doing the same thing for 35 years and there's a lot of life's experiences, almost all of them, that I haven't experienced. I don't know what I'll feel like at 55. I can tell you if we had continued with three or four more good years, I would have quit. But this opportunity we have in front of us right now, this is something that I've trained my whole life for. This is just as good as it gets. I have the reputation. I have the capital. I have the experience.

Porter Stansberry: Thank you so much for spending, geez, an hour with us...

Rick Rule: Always a pleasure.

Update on insurance claim

Indago Petroleum Limited ('Indago' or the 'Company') provides an update on the ongoing insurance claim in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February of this year and is pleased to report steady progress.

Jebel Hafit is in Block 31, onshore the Sultanate of Oman and Indago holds an approximate 50% interest in the Block through a wholly-owned subsidiary. RAK Petroleum PCL, the operator of the Block, owns the balance of the interest in the joint venture (the 'JV').

Underwriters have approved two interim payments with respect to reimbursement of the costs of controlling the well totalling USD 16 million (Indago's share USD 8 million). Most of that money, less the policy excess of USD 250,000 (Indago share USD 125,000), has already been remitted to the JV and the balance is due shortly.

The amount approved to date represents just over two-thirds of the claim relating to the well-control costs. The JV is confident that further progress will be made before the year-end.

In relation to its operations and corporate activities, the Company has no other developments to report at this time.

David Bremner, CEO, commented:

'The steady progress being made on this important matter is very encouraging. This is bolstering Indago's cash reserves at a time when access to cash is particularly challenging in our sector.'

Not another loser PP?

not a great news in terms of what is the plan for the future....

Buying volume has been increasing over the last few trading days.........news soon ?

Comment in EK's diary the other day :

"And, amazingly, Indago Petroleum (IPL) sits at 12p offer. I remind the patient that, arguably, there is 30p a share cash or, if you are really mean, 25p and no debt. Cor Blimey. This is attributable to the total breakdown in trust. Mind you, when you have got a Home Secretary who feels she can filch 116,000, be found out and then say nothing, I am not entirely surprised."

Must work out at 50p a share cash they have......


http://www.investegate.co.uk/Article.aspx?id=200902230700127080N

RNS Number : 7080N
Indago Petroleum Limited
23 February 2009

23 February 2009

INDAGO PETROLEUM LIMITED

Insurance Settlement

Indago Petroleum Limited ('Indago' or the 'Company') announces that a settlement has been reached on its insurance claim in relation to the underground blowout suffered at the Al Jariya well on the Jebel Hafit prospect in February of 2008.

Jebel Hafit is located in Block 31, onshore the Sultanate of Oman and Indago holds an approximate 50% interest in the Block through a wholly-owned subsidiary. RAK Petroleum Oman Limited ('RAK'), the operator of the Block, owns the balance of the interest in the joint venture (the 'JV').

The JV has accepted an offer by underwriters of a full and final net cash settlement incorporating a payment in lieu of being reimbursed for re-drilling the Al Jariya well, plus reimbursement of the final tranche of costs incurred by the JV in controlling the well at the time of the blowout. (the 'Settlement').

Once the Company has received its share of the Settlement, it is projected to have cash balances in the region of $38 million. It is anticipated that all the Settlement monies will have been received by the end of March 2009.

Technical evaluation of the Jebel Hafit structure is ongoing. As previously announced, the latest analyses have concluded that the upper reservoir target (the Natih) was penetrated and was demonstrated to contain water. The lower reservoir target (the Shuaiba), which has not been penetrated, was estimated in the pre-drill analysis to contain around 80% of the prospective resources.

Discussions are being progressed with RAK and Oman's Ministry of Oil and Gas in relation to the way forward on Jebel Hafit and Block 31 generally. On other operational and corporate activities, the Company has no developments to report at this time.

David Bremner, CEO, commented:

'I am very pleased that the JV has been able to reach this settlement with the insurers. The Board concluded that this outcome is in the best interests of the shareholders because it gives the Company both greater financial certainty and added flexibility in terms of strategic alternatives. It also allows the Jebel Hafit project to be progressed in a measured fashion, rather than according to a timetable set by the terms of the insurance policy'.

Rocketed this am on news of an insurence payment, which it seems gives the company some thing in the region of 47/48p?
Trading at 20p, looks a gift horse and with an asset which while high risk could
be very special if successful. Who knows a Take Over Target??
cyril

cyril,

Near 50p a share cash, and a few assets. And as they own 50% of the JH biggie, they could eaasily farm down to say 25% for a free ride on the next drill.

Preserves their cash and exposes them to potential upside of around 400p from just one of their assets.

Just goes to show how crazy the AIM market is.

With near 50p a share cash, very low overheads and 50% of the all the leads in the header (including one potentially worth over 1000p a share) and yet its just above 20p.

AIM market is dead, and it deserves to be so, they floated too much crap IMO and diluted the good stuff down too far.

Now all they need to do is get their interests in these wells on a carried basis and the cash is free for new prospects.

Worth a read for information :

http://boards.fool.co.uk/Message.asp?mid=11453328&sort=whole


.

The Times
February 24th 2009
Indago Petroleum gets boost of energy
Smaller companies
Peter Stiff

Shares in Indago Petroleum more than doubled in value yesterday after the AIM-listed energy explorer struck not oil or gas but cash.

After months of uncertainty, the group said that it had agreed a full and final settlement on an insurance claim in relation to an underground blow-out suffered at its al-Jariya well in Oman about a year ago, covering drilling and other costs.

Once it receives the money, which is expected by the end of March, Indago said that it would have projected cash balances of $38 million (26 million), far more than its stock market value. David Bremner, the chief executive, said that the outcome gave the group greater financial certainty and added flexibility to pursue strategic alternatives. Ambrian, which has a speculative buy rating on the stock, said that the payout removed a significant uncertainty and any risk that it may have to redrill the well this year. The shares rose 14p to 26p.


Daily Mail -

On AIM, Indago Petroleum leapt 14p to 26p after settling its Jebel Hafit joint venture insurance claim in Oman.
The claim relates to a blowout at the Al Jariya well a year ago. Its share of the payout will give it a cash balance of $38million (26million).


The Guardian -

Finally, Aim-listed Indago Petroleum jumped 14p to 26.5p. The company has settled an insurance claim relating to an underground blowout at the Al Jariya well on the Jebel Hafit prospect a year ago, which should boost its cash balances to $38m. Its market capitalisation - even after the increase in its share price - is less than $20m. The company's nominated advisor Ambrian said:

"There are several scenarios that could materialise over the coming months concerning the use of cash subsequent to the insurance payout. At present Indago has no firm well commitments, although we understand that scope for re-drilling the Jebel Hafit and Adam prospects is being evaluated. Importantly, the insurance settlement means that Indago is no longer under pressure from the insurers to re-drill Jebel Hafit during 2009. Shareholders retain exposure to an exploration company that has the opportunity to create a material increase in value through the deployment of funds in Oman or, possibly, elsewhere. The insurance settlement removes a significant uncertainty that had been present for some months. We retain our speculative buy recommendation."

http://www.guardian.co.uk/business/marketforceslive/2009/feb/23/3igroupbusiness-barclay


Just 3 of the write ups this am,should see some interest today?

cyril