Indago to Declare Special Dividend on Asset Sale

Crosby Capital Partners Inc. noted the regulatory announcement made by Indago Petroleum Limited advising that it had agreed, subject to shareholder approval, to dispose of 100% of its production and development assets and of approximately 50% of its exploration assets to RAK Petroleum.

The proposed sale, for total cash consideration of £194,235,267 (before transaction costs), is the equivalent of 72.5p per share on a fully diluted basis and represents a 55.9% premium to its share price of 46.5p per share at the close of business on 6 March 2007 (being the last business day prior to Indago's announcement that it had received a proposal which may lead to the sale of a material proportion of its assets for cash). Following the completion of the sale, Indago also announced that it will return capital of £160 million, which is the equivalent of 60p per share, to its shareholders by way of a special dividend to be paid in April 2007.

Crosby, through its 56.6% subsidiary Silk Route Petroleum Limited, owns 35,000,000 shares, representing 13.12% of the issued share capital of Indago. Silk Route will use the cash received from the dividend to settle its share of the original financing for the purchase of the underlying assets of Indago and then, from the balance of the proceeds, declare its own cash dividend of which Crosby's share will be approximately US$16.8 million. Once Silk Route has settled its share of the acquisition financing the existing pledge over its Indago shares will be released.

Commenting, Simon Fry, Crosby's CEO, said "Today's events are an important step in the monetization of the Middle Eastern assets from the Novus transaction in 2004. Indago is a good example of a typical Crosby deal. Since we acquired these assets as effectively free carried interest, we have been continuously focused on monetizing their value, and it is encouraging that we have now earned a significant cash return, whilst retaining further upside in the exploration assets though the equity stake."

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

Indago's technical and commercial expertise is focused on a tightly defined geographical area of politically stable countries with proven hydrocarbon reserves and an active gas market. Indago's competitive advantage lies in its strong acreage position near existing infrastructure and a small professional team with long-term experience in the region.

Crosby Capital Partners Inc. is a leading independent deal-focused Asia-oriented merchant banking and asset management group.