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

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.

In this mornings Independent Newspaper....

''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.''

Rodders

Bingo...lol

Rodders

Great minds....and all that :)

Well, with an offer for some of the assets at 70p ps cash, add on the present cash in bank........and then the potential for Jebel Hafit with its 1 billion boe potential, as well as Zad and others.

Your looking at well over 70p per share cash in the bank, with some big potential prospects all being well.

"No brainer" springs to mind if it goes ahead.

From today's FT:

*Indago Petroleum gained 30.6 per cent to 60p as the Middle East-focused exploration group received a takeover proposal for one of its main assets. Dealers said the asset was likely to be the highly-rated Jebel Hafit well in Oman, where drilling began last month."

I want more than 70p for Jebel-Hafit. There is as much oil condensate in there allegedly, value-wise, as there is Gas. Let's wait for the update. I assume this will be out before any cursory offer is accepted at this stage.
Nice to have a winner though!

VM, very interesting FT link. You wonder what the ongoing drill has turned up already...................

Jebel offers over 450p per share of potential upside........

On line limits :

BUY 25K @ 62.96p

SELL 35K @ 62.64p



L2 is very blue and now 1 v 2 @ 62.5/63 after the last moves up

Well, valentine has been near spot on with posts of late, so I am hoping this one is as well :

"valentine - 8 Mar'07 - 09:27 - 499 of 499

I think JH is very commercial and I further suggest that drilling is further ahead than expected at this stage. I believe seismics indicated a thicker shell above the dome than actually is there and means the remainder is more capacity quite simply than was projected. A considerable amount of that chamber is condensate which has got a few people more than a little interested. Previously it was gas targeted at local regional consumption. Now they have an internationally saleable commodity! OIL!"

If it is indeed for JH, it may not be for 100% of the asset. Indago may wish to retain a portion of it.

MM buy at 63p shot it up a little there.

Nice 500K X trade there at 65p, someone wants them and see's a decent profit from 65p :)

A few more big buy trades, and a few smaller sells filling them, so it appears that the PI's are willing to take profits, and someone is hoovering this up in the odd large buy here and there.

Bodes well, and the next leg up should be soon....all being well.. :)

Speculation from Energy Intelligence that the bidder is RAK Petroleum. RAK are a UAE-based company who are looking to increase their assets before their IPO.

Indago's UAE-based assets are Saleh and RAK-B, both in the same area as West Bukha.

Indago Petroleum Limited
09 March 2007

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

Appointment of financial adviser and corporate broker

The Board of Indago Petroleum Limited (the 'Company' or 'Indago') is pleased to
announce the appointment of JPMorgan Cazenove Limited as the Company's financial
adviser and corporate broker with immediate effect.

Nabarro Wells & Co. Limited remains the nominated adviser to the Company.

Good news about JPC being taken on !

RAK also is interesting, and they are not short of cash...........

And a nice 200K buy at 66p.........highest price for a large buy as yet.

Good stuff.
I wonder how many years guaranteed supply of O&G is in the West bukha and A-Jarilya formations?
It's all a bit reminiscent of the North Sea back in late 70's.
RAK obviously want to corner the market in local resources for the foreseeable future.
Might get one of those little islands in shape of countries world off Abu Dhabi out of the profits! lol..well a bit of one.

More big buys around.

Looking at it in basic terms, the rumoured 70p is for some of the assets. No doubt this is an initial cheeky offer, and we can expect the final offer to be higher.

But, for now, lets say its 70p a share.

So we have 70p a share.
We have cash in bank of around 30m, or 11p a share.
We have leftover assets that will not be sold off.

Therefore, just taking potential cash position, and ignoring the upside of a higher offer, and ignoring all other retained assets, we have 81p cash in the bank, and everything else in for free at that price, should the offer for some of the assets come through at 70p.

Seems a no brainer at under 80p imo, all being well with the offer.

The large buys going through might also suggest this initial offer for some assets, might spark into an offer for the whole company....who knows.