Indago Holds Breath as Drilling on Zad Well in Oman's Adam Block Begins

Indago Petroleum Limited has commenced the drilling of the Company's Zad well on the Adam Prospect in Block 47.

The well, which spudded on May 20, 2008, is forecast to take around 100 days to drill and is targeting the Cambrian Amin Sandstone reservoir at a depth of around 4,250 meters.

Adam is estimated by the Company to have gross mean prospective resources of about a half trillion cubic feet of gas and substantial associated condensate. The Kauther Field, operated by PDO, is an analogue for Adam. Kauther lies some 45 kilometers to the south of Adam and came on-stream in October 2007 producing gas and gas condensate from the same Amin Sandstone reservoir.

The proximity of a major pipeline which runs through Block 47 to Muscat, the capital and largest population centre in Oman, is a factor that the Company believes enhances the chance of a discovery at Adam being a commercial success.

"We are excited to get the Zad well underway and expect a more straightforward operation than we had with our recent Al Jariya well,"said CEO David Bremmer. "Whilst Adam is considerably smaller than the Jebel Hafit prospect, a discovery would be highly significant for Indago. It could also help achieve a critical mass for the development of other existing and future discoveries in the immediate area."

Indago holds an approximate 50% interest in Oman onshore Block 47. The Operator, RAK Petroleum PCL, holds the balance of the interest.


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