Indago Petroleum Limited, the independent oil and gas exploration company exploring onshore the Sultanate of Oman, today announces its unaudited interim results for the six months ended 30 June 2008.
HIGHLIGHTS
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.
Tim Eggar, Chairman of Indago, commented:
"Indago has experienced an extremely difficult year operationally. However, the Company remains financially sound and retains considerable exploration potential which has still not been tested.
Nonetheless, given an enforced delay in drilling activity until mid 2009 at least and more constrained financial resources, the Board believes that diversification of opportunity and risk through asset or corporate transactions is appropriate. This would allow shareholders to participate in new projects whilst retaining a significant interest in the existing exploration portfolio in Oman."