Indago Petroleum Limited is pleased to report that at its Annual General Meeting held earlier today all resolutions were approved by shareholders.
Commenting on the progress and activities of the Company, Peter Sadler, Chief Executive, gave the following update:
“It is now eight months since the Company floated on AIM. During that brief period, we have begun the drilling of the West Bukha appraisal / development well offshore Oman and have also been granted two new concessions: ‘RAK B’ Concession offshore Ras Al Khaimah in the U.A.E and Block 43A onshore the Sultanate of Oman.
The Company has also commissioned a survey vessel to acquire 3D seismic over the entire Bukha field, which started operations last week. This is the first step in identifying incremental reserves that may exist. The development of such reserves could leverage off the existing infrastructure, utlilising spare drilling slots on the existing platform. Processed results from the survey are expected around the end of 2006 and technical evaluation will follow in the first half of 2007, after which project viability can be assessed.
The Company’s cash position remains strong. Our last sale of condensate was positively impacted by the buoyant oil prices, achieving over $70 per barrel. Production during the first half of the year was slightly ahead of budget and we expect this trend to continue in the second half. With costs in both the sector and the region suffering significant upward pressure, we are pleased to announce that we have secured key contracts on rigs and casings and our programme is forecast to be fully funded into 2008.
The West Bukha-2 well is currently being cored in the target reservoir, broadly on schedule, with logging results expected in the last week of August followed closely by the decision on flow testing. We will also be drilling three onshore Oman prospects during the next twelve months, the third and largest of which is targeting recoverable reserves of over 1 billion boe. The drilling infrastructure to be used throughout the programme is scheduled to mobilise imminently and to spud the Hawamel well, on the Izz prospect, at the beginning of September.
As part of our stated strategy, we will also be acquiring 2D seismic in Blocks 31, 47 and 43A onshore the Sultanate of Oman. Contracts have been awarded and operations are planned to start in October. Our objective is to upgrade a selection of leads into prospects which could be drilled in 2008.
Indago has an enviable position in a proven hydrocarbon region, holding more blocks than any other company in Oman. With a fully funded programme in place the next 12 months are going to be very exciting for the Company. However, the team are also continually on the lookout for new opportunities to move the business forward beyond its current phase of growth”