TIDMIPL
RNS Number : 5010Q
Indago Petroleum Limited
14 April 2009
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14 April 2009
INDAGO PETROLEUM LIMITED
Sale of Exploration Assets in Oman
Indago Petroleum Limited ("Indago" or the "Company") announces that RAK
Petroleum Oman Limited, a wholly owned subsidiary of RAK Petroleum PCL ("RAK
Petroleum"), has acquired Indago's wholly owned subsidiaries holding
approximately 50% interests in Blocks 31, 47 and 43A in Oman (the "Licences").
RAK Petroleum already held the balance of the interests and is the Operator of
the Licences. As a result of the sale, Indago will have no continuing work
obligations in Oman and, following the recently announced settlement of the
insurance claim in relation to the Al Jariya 1 well, cash balances of
approximately $35 million. This figure is after a payment by Indago to RAK of
approximately $3.5 million in relation to a release, subject to certain
warranties, from all possible obligations arising from their joint activities
and past transactions. Group shareholders' funds, after writing off drilling and
development costs, are represented by the cash balances.
David Bremner, CEO of Indago, commented:
"In March 2007 Indago re-focused as a pure oil and gas explorer after the sale
of production and certain exploration assets to RAK Petroleum. Subsequently,
Indago has participated with RAK Petroleum in two exploration wells, each of
which proved impossible to complete as planned, spending around $41 million
before insurance recoveries. We understand the wish of our former partner to
press ahead with further exploration of these areas. The costs, however, will be
very considerable and this agreement assures us of strategic flexibility."
Tim Eggar, Chairman of Indago, commented:
"As indicated in my statement in September 2008, the Board of Indago is
continuing to consider and compare opportunities to enhance shareholder
value. We are in discussions about a number of interesting corporate and asset
transactions, all of which need to be compared to a return of capital. In recent
weeks The Board has concluded that the advancement of these opportunities will
be greatly facilitated by this transaction which is designed to extinguish any
further obligations in Oman. We will make further announcements as these become
appropriate."
As a result of the divestment of the Licences, Indago has no remaining oil and
gas interests. Under the AIM Rules, Indago has become an Investing Company and
must have its investing strategy approved by its shareholders. In addition, in
order to remain on AIM, the Company is required under the current AIM Rules to
conclude a major transaction within twelve months of such shareholder approval.
It has been agreed with the London Stock Exchange that Indago's investing
strategy can be approved by shareholders at the Company's next Annual General
Meeting.
A circular to be sent to shareholders will set out the Company's investing
strategy and the Notice of Annual General Meeting will contain the required
resolution seeking approval.
-ends-
Enquiries:
+--+--------------------------------+----------------------------------+
| Indago Petroleum Limited | |
+-----------------------------------+----------------------------------+
| | Tim Eggar, Chairman | +44(0) 7771 597 499 |
+--+--------------------------------+----------------------------------+
| | David Bremner, CEO | + 1 805 708 4892 |
+--+--------------------------------+----------------------------------+
| | Martin Groak, CFO | + 44 (0) 20 7096 3461 |
+--+--------------------------------+----------------------------------+
| | |
+-----------------------------------+----------------------------------+
| Ambrian Partners Limited | +44 (0) 20 7634 4705 |
| (Nomad and Broker) | |
+-----------------------------------+----------------------------------+
| | Marc Cramsie | |
+--+--------------------------------+----------------------------------+
| | |
+-----------------------------------+----------------------------------+
| College Hill Associates | + 44 (0) 20 7457 2020 |
+-----------------------------------+----------------------------------+
| | Nick Elwes | |
+--+--------------------------------+----------------------------------+
| | Paddy Blewer | |
+--+--------------------------------+----------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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