Indago Spuds Jebel Hafit Well Onshore Oman

Indago Petroleum Limited said that it has commenced drilling the Al Jariya-1 exploration well on the Jebel Hafit prospect in Block 31 onshore Oman. At 6 a.m. Tuesday morning, the well (Indago 100%) was drilling ahead in 26" hole at a depth of 103m, having already set 30" casing.

The well, drilling to approximately 5900m, is targeting the Natih and Thamama formations, which are proven producers of both gas and condensate in analogue structures such as Shams (operated by PTTEP), Saj'aa (BP) and Margham (DME).

Al Jariya-1 is targeting a mean, gas and condensate reserve base of approximately 1 billion boe and is expected to take between 125 and 160 days to drill.

Additionally, as part of our strategy to create further, high-impact drilling opportunities, Indago has been acquiring 2D seismic over its leads in Blocks 31 and 47 onshore Oman. Currently the Company have shot around 100 km of new seismic, with encouraging results. The program is expected to continue until March 2007, possibly encompassing incremental leads identified in Block 43A, a new Block in our portfolio which was announced to the market in June last year.

John Hurst, Exploration Director of Indago Petroleum, commented

"Jebel Hafit is a high-impact exploration prospect and it has taken five years from originally identifying the potential and defining the prospect, to finally starting drilling. It is incredibly exciting to be at this point, as prospects with such large upside potential are rare."

Indago Petroleum plc is an oil and gas exploration and production company that is geographically focused in the Middle East. It operates six licenses in the Sultanate of Oman and the United Arab Emirates. The assets include Bukha, a producing gas-condensate field and West Bukha, an approved gas-condensate development. Both fields are located offshore Oman.

Indago is also an active explorer and has commenced an exploration drilling campaign comprising three onshore wells targeting gas-condensate bearing structures. This program is planned to be completed by mid 2007.

Indago aims to become a leading producer of gas, condensate and LPG in Oman and the United Arab Emirates.