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

I feel crestfallen! That makes my 3500 shares which I bought ages ago look pretty embarrasing! :o)

If only there were more people buying smaller amounts we could get this message board a bit more lively.

I think there will be, IPL is the only AIM junior that has decent production coming on line and is also presently drilling a 1 billion boe prospect..........I would imagine a lot of PI interest will come around late May, early June.

I'll be adding well before then ;)

Lets not forget the potential here. A decent upgrade of West Bukha would add to the values below as well.



Mirabaud said in their report early Feb 2007 :

"the key well in a three well exploration programme has just spudded on the massive Jebel Hafit structure. At the current share price investors are effectively paying 16p of option value for 443p of unrisked upside, if Jebel Hafit comes in."

The Mirabaud risked valuation is summarised ;

"We have a risked core valuation of 35p per share for Indagos producing and development assets and a further 151p per share of risked exploration upside for the three well programme currently underway onshore Oman."

Nor should we forget the seismic survey work which has already been described as "encouraging"

Well PP. Up 20% now, Bid 55p Offer 57p, so hope you haven't missed the boat!

Indago Petroleum Limited
07 March 2007



Indago Petroleum Limited

('Indago' or the 'Company')



Potential transaction



Indago, the oil and gas exploration and production company, announces that it
has received a proposal which may lead to the sale of a material proportion of
the Company's assets for a cash consideration in excess of the current market
capitalisation of the Company. Indago's Directors would like to stress that
there can be no certainty that a transaction will be forthcoming.



A further announcement will be made as and when appropriate.

7 March 2007

Terrific!

Current mcap is around 130million.

My guess would be a bid for a portion of West Bukha. I'd like to see Indago retain at least 20% of that asset.

Well, sale of some of the assets, for cash, in excess of the current market cap.........I would guess its West Bukha.......jolly good........if its West Bukha then it will be a big lump of cash, and also their present cash in the bank is not needed to be used to develop West Buhka....they are going to be sat on a lot of money, and perhaps still some big potential plays.


Indago Petroleum Potential Transaction

RNS Number:5023S
Indago Petroleum Limited
07 March 2007

Indago Petroleum Limited
("Indago" or the "Company")

Potential transaction

Indago, the oil and gas exploration and production company, announces that it has received a proposal which may lead to the sale of a material proportion of the Company's assets for a cash consideration in excess of the current market capitalisation of the Company. Indago's Directors would like to stress that there can be no certainty that a transaction will be forthcoming.

A further announcement will be made as and when appropriate.

Found some info on Tibat when researching Heritage. Summary added to header.

Plagiarism spotted on the ADVFN site!!! ;-)

LOL....... ;)

Do you think possibly someone in the know is making a bid including Jebel Hafit............eg get in now before the drill reveals all ???? If JH is included with West Bukha and Bukha, then the price could be seriously much higher than where we are now.

That would be a hell of a gamble. A-J-1 well has about a 29% chance of success. I'm happy to take that chance given the restricted downside provided to the SP by West Bukha. Jebel Hafit is currently factored into the SP at around 16p, so why anyone would pay 50p plus, I don't know.

My guess would be that the proposal concerns block 8 and block 17 only.

Having said that, if someone offered 50p+ for Jebel Hafit, I'd bite their hand off.

Current cash is worth 11p per share. The SP at the time of the RNS was about 55p.

If the bid came in at just 56p and included ALL of Indago's assets, they would be left with cash worth 67p per share, about 10% upside from current position. This would be worst case scenario (lowest possible bid, no assets left). To state the obvious, if Indago get a higher offer than that or if the offer leaves the company with some remaining assets, the mcap will be more than 10% greater than at present.

A good investment :-)

LG International is the 50% partner in West Bukha, they will also have access to the classified information on the reserves upgrade......being the 50% partner, so they know what its worth.........we do not until that data is made public. This may be why LG (if its them) are making the offer now, ahead of the information being made public.

http://www.lgicorp.com/eng/main_eng.jsp

If that is the case, they would most probably also make an offer to Heritage. Will be interesting to see if they release any news today.

Not always, they may be happy to raise their stake from 50% to 90% at the moment, they are the in effect, in full control.

A good post on AFN, and I would add, from the asset portfolio that the "material" part refers, IMV, to the production assets in the most. As VM said, the offer most likely refers only to Blocks 8 and 17 in Oman, however, potentially someone could be taking those plus the others.

IMV the offer price for "some of the assets" refers to the market cap at RNS release, however, lets take it as market open anyway. The calcs are quick and dirty "back of the fag packet" but shows were the land lies................



"tonudiki - 7 Mar'07 - 15:12 - 433 of 471

Given

1) that yesterdays closing market cap was 124 million with 266.6m shares in issue. (For the purposes of todays announcement I'm assuming they are working on yesterdays market cap rather than today's noon value)

2) there is about 39 million in the bank

3) The proposal offer is for a material part of IPL's assets for more than yesterdays market cap..let's be conservative and say 130 million

4) 130+39 million= 169 million divided by 266.6m shares = 63.4p per share cash PLUS whatever assets are retained by IPL.

A share purchase at 63p or less is a bargain if the asset sale deal goes through at 130 million as you get the remaining projects/assets for free.

Suppose the proposal is for a purchase of 150 million or 180 million? We don't actually know how much in excess of the yesterdays market cap we are talking about do we?

http://news.independent.co.uk/business/analysis_and_features/article2338474.ece


On AIM, Indago Petroleum pleased investors by announcing it is in negotiations to sell a "material" slice of its assets for more than yesterday's opening market capitalisation. The word is that the assets will sell for 70p per share, with the remainder of the company to go on the block at a later date. The shares surged 14.25p to 60.75p.