Indago Spuds First Well in Oman Drilling Program

Indago has commenced drilling the Hawamel-1 exploration well on the Izz prospect, in Block 47 onshore the Sultanate of Oman (Indago 100%).

The well, drilling to approximately 2500m, is targeting the Natih and Shuaiba formations which are proven producers of both oil and gas in adjacent blocks, such the large Fahud and Natih fields in Block 6 or the smaller, Hamrat Duru and Hafar gas discoveries in Block 30. Hawamel-1 is targeting a mean, gas reserve base of 367 Bscf (approximately 61 million boe) and is expected to take 52 days.

The second well in the program will be Al Jariya-1, on the Jebel Hafit prospect in Block 31 onshore the Sultanate of Oman (Indago 100%) which targets mean reserves of approximately 1 billion boe. Timing of commencement of drilling will depend on the extent of testing required at Hawamel-1 however spud is likely to take place before the end of the year and take approximately five months, drilling to around 5800 meters.

The third well, Zad-1 on the Adam prospect in Block 47 (Indago 100%), will spud following completion of operations on Al Jariya and drill to approximately 4400 meters. This well will target a reserve base of approximately 140 million boe.

Mobilization of the camp for our onshore 2D seismic program, on Blocks 31 and 47, is also taking place.

Progress is also being made with our other operations. The 3D seismic survey over our offshore, producing Bukha field is over 50% completed. Drilling operations have also reached a late stage on West Bukha-2, an offshore, appraisal well of a previously discovered field which has an approved development plan. Having penetrated the main and secondary reservoirs, we are in the process of running electric wireline logs, after which we will isolate the main reservoir behind casing before drilling on further to appraise the lower, secondary reservoir. Testing operations are planned to start in approximately 10 days.

Peter Sadler, CEO of Indago Petroleum commented:

"We are pleased and excited to be commencing this three well, onshore exploration program. Hawamel-1 targets formations which have produced oil and gas in many nearby structures and the presence of those local analogues significantly improves the potential for a successful outcome. Although Hawamel-1 is not the largest of our prospects, we believe it is operationally prudent to begin our program with a relatively shallow well before tackling the much deeper, 1 billion boe target, of Al Jariya - 1."


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