RAK Acquires Oman Assets from Indago Petroleum

RAK Petroleum PCL, the oil and gas exploration and production company, has acquired Indago Ventures 31 Limited and Indago Ventures 47 Limited, both wholly-owned subsidiaries of UK-based Indago Petroleum Limited, which hold exploration rights in two concessions in the Sultanate of Oman.

The acquisition of Indago's 50 percent share in Oman's Block 31 and 47 brings RAK Petroleum's interest in these blocks to 100 percent. RAK Petroleum acquired its existing 50 percent interest in these two concessions from Indago in 2007 as part of a wider transaction including a 40 percent share of Oman's Block 8. Block 8 contains the offshore West Bukha oil field which came on production in February.

As consideration for the latest transaction, Indago made a payment to RAK Petroleum of $3.5 million in relation to a release, subject to certain warranties, from all possible obligations arising from their joint activities and past transactions.

"The acquisition of these two companies and the acquisition of Eagle Energy (Oman) Limited holding a 10 percent share of Block 8, which RAK Petroleum announced last week, highlight the intention to actively and aggressively expand our exploration and production assets in the region," stated Abdulaziz Al Ghurair, Chairman of RAK Petroleum's Board of Directors. "RAK Petroleum is well positioned with significant cash reserves and is on the lookout for suitable opportunities to add to our portfolio," he explained.

"RAK Petroleum plans to drill the Zad-2 well in Block 47 later in 2009," stated Bijan Mossavar-Rahmani, RAK Petroleum's Managing Director and Chairman of the Executive Committee of its Board of Directors. "If successful, the Zad prospect provides the potential of a significant gas and condensate field in a prime location only 10 kilometers from an existing pipeline accessing Oman’s growing gas markets," commented Mr. Mossavar-Rahmani. "The exploration well will test the Amin sandstone reservoir, an analogue of the nearby Kauther field," he noted.

RAK Petroleum PCL is registered in the Free Trade Zone of the Emirate of Ras Al Khaimah and is operator of eight blocks located in the Sultanate of Oman and in the United Arab Emirates, of which six are in the exploration phase and two are undergoing appraisal for possible redevelopment.