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

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.

So RAK have a present fighting fund, fully paid up, of 3 Billion AED, and that will go up to 5 Billion AED when they go public.

3 Billion AED is 423 million pounds.

5 Billion AED is 705 million pounds.


So, they certainly are not short of cash.


http://www.emiratesinternational.net/index.cfm?fuseaction=News.ListNews&pagename=News&newsId=280

http://www.ameinfo.com/97708.html



.

I have had a line of thinking that perhaps RAK might want to buy all of IPL, and gain the London listing in the process (we know they are looking at London to IPO, but I do not know Full or Aim)

Now, to go with this line of thinking, we have seen a lot of big buys going through of late.

We have seen an announcement for "purchase of some assets" and we have seen the big buying continue.

What is the difference between buying a "material part of the assets" and buying "the company"..........well that would be EPT disclosures which would give the game away.

I suggest therefore that the "material part" purchase might be purely a guise by RAK, and in fact they may want the whole company, but want to be able to purchase as much as they can from the market ahead of declaring a fully blown takeover bid.

If the 70p bid for "some assets" goes ahead we work out there will be cash in the bank of 81p + all the leftover assets. It would therefore make sense for RAK to as much as possible over a period of time up to 81p.....and then announce a change from "material part" to "whole company".

Perhaps, its a different way of looking at it.

Interesting article....

http://www.oilbarrel.com/home.html

Quote ''AIM-listed Indago Petroleum ( which may nowe be oin play in some form o r other) is unusual in a sense in that it is purely focused on the Middle East with half a dozen licences in Oman and the United Arab Emirates (UAE). The assets include Bukha, a producing gas condensate field, and West Bukha, an approved gas condensate development, where a successful testing programme has recently been completed. Both fields are located offshore Oman. The West Bukha 2A well demonstrated a combined flow rate from two test zones of approximately 12,750 bopd and 26 MMscf/d. Peter Sadler, Indagos chief executive, says the test results underline the commercial viability of the project and bring future production a step closer. Indago is the operator of the Block 8 project with a 40 per cent ownership.''

Rodders

I've added a link to that article in the header. Thanks, rodspotty, nice find.

The large block buying contines, with a 262k @ 66p yesterday.

I notice the comment on "could take up to four months to drill".......which is now quicker than the original "4 to 5". News early/mid June perhaps on Jebel Hafit ?



http://www.oilbarrel.com/feature/article.html?body=1&key=oilbarrel_features_en:1173641724&feed=oilbarrel_en

11.03.2007

Little Fish In A Big Pond: AIM Juniors Finding Their Feet In The Middle East

".............AIM-listed Indago Petroleum ( which may now be in play in some form or other) is unusual in a sense in that it is purely focused on the Middle East with half a dozen licences in Oman and the United Arab Emirates (UAE). The assets include Bukha, a producing gas condensate field, and West Bukha, an approved gas condensate development, where a successful testing programme has recently been completed. Both fields are located offshore Oman. The West Bukha 2A well demonstrated a combined flow rate from two test zones of approximately 12,750 bopd and 26 MMscf/d. Peter Sadler, Indagos chief executive, says the test results underline the commercial viability of the project and bring future production a step closer. Indago is the operator of the Block 8 project with a 40 per cent ownership.

The company also recently launched into a three well exploratory drilling programme across three separate blocks in Oman. The first well, Hawamel-1A, onshore Block 47, encountered its target formations and is likely to be gas bearing, Indago said in January, though the structure appears complicated. The latest well, Al Jariya-1, is targeting the Jebel Hafit prospect onshore Block 31, which Indago says has a mean gas and condensate reserve base of up to 1 billion boe. It is the culmination of a five year journey for the company, from originally identifying the potential and defining the prospect. John Hurst, exploration director says: It is incredibly exciting to be at this point, as prospects with such large upside potential are rare. The well could take up to four months to drill. A third well, Zad-1, later this year will target the Adam prospect in Block 47. It is a defining time for Indago which holds 100 per cent in each of these wells, with any major discovery likely to unlock big things........... "

Four months from now.

can anyone give an accuarate mkt cap? @65p. tia.

Shares in issue 266,220,000 x .65 = 173m. Mkt cap.

Rodders

many thanks rodders.

Nice big buy again..........

Indago Petroleum Limited
14 March 2007



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


Proposed Disposal of 100 per cent. of the Group's Production and Development
Assets and of approximately 50 per cent. of the Group's Exploration Assets to
RAK Petroleum Public Company Limited ('RAK Petroleum') for a price of
194,235,267

Return of Capital of 60 pence per Ordinary Share

1 for 5 Share Consolidation of Ordinary Shares



Indago, the oil and gas exploration and production company, announces today:

The Proposed Disposal of 100 per cent. of its Production & Development
Assets (principally consisting of Blocks 8 and 30, located off-shore and
on-shore the Sultanate of Oman respectively); and

the Proposed Disposal of approximately 50 per cent. of its Exploration
Assets (consisting of Blocks 31, 43A and 47, located on-shore the Sultanate of
Oman) to RAK Petroleum for a total consideration of 194,235,267 to be satisfied
in cash on Completion.

Indago (through several wholly owned subsidiaries) and RAK Petroleum
have entered into Joint Operating Agreements in relation to their ongoing
participation in the Exploration Assets.

The Disposal Proceeds (before transaction costs) are equivalent to
72.5 pence per Ordinary Share on a fully diluted basis, representing a 55.9 per
cent. premium to the Company's share price of 46.5 pence per share at the close
of business on 6 March 2007 (being the last business day prior to the Company's
announcement that it had received a proposal which may lead to the sale of a
material proportion of its assets for cash).

The intended Return of Capital of approximately 160 million, or 60
pence per Ordinary Share, to the Company's Shareholders by way of a Special
Dividend. The Special Dividend is expected to be paid on 18 April 2007 to
Shareholders on the register on 13 April 2007. The Return of Capital is to be
facilitated by a Court approved cancellation of the Company's share premium
account.

Indago intends to consolidate its existing share capital on the basis
of 1 (one) New Ordinary Share for every 5 (five) existing Ordinary Shares.

In addition, Indago and RAK Petroleum have entered into an area of
mutual interest agreement covering the UAE and Oman.

Peter Sadler (Chief Executive Officer) and John Hurst (Exploration
Director) intend to step down from the Board of Indago and intend to transfer,
together with the employees of the Disposal Group, to RAK Petroleum. Martin
Groak (Chief Financial Officer) will act as interim Chief Executive Officer of
Indago post Completion.

Following Completion of the Proposed Disposal Indago will:

be a pure oil and gas exploration company;

retain its geographical focus by continuing to explore opportunities
in the Sultanate of Oman and the UAE, being politically stable countries with
proven hydrocarbon reserves and an active gas market; and

continue, jointly with RAK Petroleum, to pursue its programme of
actively converting its current portfolio of leads into drillable prospects, as
well as identify and seek other suitable resource projects with which to grow
the business.

Under Rule 15 of the AIM Rules, the Proposed Disposal is deemed to constitute a
fundamental change of business of the Company and consequently requires the
prior approval of Shareholders. The Company also intends to cancel its share
premium account to allow the Return of Capital and this also requires
shareholder consent. A Circular providing details of the Proposed Disposal, the
Return of Capital and the Share Consolidation will be sent to Shareholders
today, convening an Extraordinary General Meeting of the Company, which will be
held on 3 April 2007 at 11.00 a.m at the Sheraton Hotel, Charles de Gaulle
Airport, Paris. At the meeting, resolutions will be proposed to approve the
Proposed Disposal, the cancellation of the Company's share premium account in
the context of the Return of Capital and the Share Consolidation.

Tim Eggar, Chairman of Indago, said:

'We are delighted with the substantial cash value that we are receiving and
delivering to shareholders immediately. We are also giving them the opportunity
to retain exposure to the large potential upside of Indago's attractive
Exploration Assets. Shareholders will continue to be invested in the same
exploration programme as before the disposal, with the same operating team, and
have the added advantage of a well connected and well funded partner.'

Abdul Aziz Al Ghurair, Chairman of RAK Petroleum, commented:

'We are delighted to have reached agreement on such a compelling and logical
acquisition for our shareholders and other stakeholders. These Indago assets in
UAE and Oman offer a mix of current reserves and exploration upside and are
hugely complimentary to RAK Petroleum's regional ambitions, relationships and
financial capacity. We are also delighted to welcome Peter Sadler and John
Hurst into the RAK Petroleum team.'


An investor presentation will be held today at 10.00a.m. at the offices of
College Hill Associates, 78 Cannon Street, London EC4N 6HH. The presentation
will also be posted on the Company's website (

www.indagopetroleum.com

) today.

:)

Do we have any idea what the value of the new shares will be & what date they will be issued? Presumably once they go ex-divi that will be the 1-5 re-issue date.

HARRYCAT - The new shares will have a value of circa 1 on cash in the bank, the exploration assetts are thrown in for free. In other words the present value on cash alone is circa 80p.

Rodders

Just added 5K @69.45p, as I see it I am buying the new Indago at 50% discount to the cash of 20p, plus I have the exploration assetts thrown in for free. DYOR

Rodders

Correction to my previous post, allowing for tax I have bought the new Indago at 15% discount to net cash.

Rodders

Acting CEO, Martin Groak said to Reuters: "Our interest in Al Jariya (located in northern Oman) could be 500 million barrels -- equivalent to about two pounds a share. That would be a company changer, and would open up a number of strategies."

He added that the cash that would be generated from such a discovery could be used to buy other firms -- both in the Middle East and elsewhere.

"There are some companies that got funding for exploration when it was easy, who are now struggling to keep their programme moving forward," he said. "Anyone with money can expect to look at the market and pick up deals."

ValueMax, good find, thanks.

Rodders