IPL Indago Pet

RNS Number:2004T
Indago Petroleum Limited
28 April 2008


Indago Petroleum Limited
(AIM: IPL)


Drilling Update


Indago Petroleum Limited ("Indago" or "the Company"), the oil and gas
exploration company exploring onshore the Sultanate of Oman, announces a
drilling update for the Al Jariya-1 well, located on the Jebel Hafit prospect in
Block 31, adjacent to the border with Abu Dhabi.


Following press releases made by the Company and by the Operator RAK Petroleum
PCL on March 28th 2008 regarding the status of the subject well, work has
continued on the attempt to remediate the well and prepare it for a possible
sidetrack. A cement plug was set across the open-hole section below 4591m as
planned. The operation proceeded using free-point logs which identified 2668m as
the point below which the drillstring was stuck. Subsequent recovery of drill
pipe could only be achieved from above this depth. This situation precludes any
sidetrack operation from below this 2668m level and a sidetrack from above this
level is considered to be neither safe nor technically feasible. Consequently,
there is no alternative other than to plug and abandon the Al Jariya well. This
operation has been approved by the Oman Ministry of Oil and Gas and should be
completed during the next few days.


Following consultation between the joint venture partners and the Ministry, and
in accordance with the previously announced plans, the intention is to now move
the Nabors 103 rig to the Zad location on the Adam prospect, on the adjacent
Block 47, and to drill that well starting in late May 2008. Whilst that well is
drilling, the joint venture will progress its insurance claim for the loss of
the Al Jariya well and fully evaluate the practicality and cost effectiveness of
re-drilling the Jebel Hafit prospect. It is likely that the order time required
for long lead items will preclude the possibility of drilling a new Jebel Hafit
well immediately following the Zad well and, therefore, such a re-drill would
probably not commence before 2009.


As described in the Operator's press release of March 28th 2008, technical work
indicates that the prospectivity of the Jebel Hafit structure remains
substantially undiminished, most certainly at the deeper Shuaiba (Thamama) level
which is estimated to hold the majority of the prospective resources.


David Bremner, CEO, commenting on today's announcement said:


"Clearly the loss of the Al Jariya well is a huge disappointment for the
company and our shareholders. We intend to pursue vigorously all avenues open to
us to get Jebel Hafit re-drilled in as short a time frame as possible. In the
meantime we believe that the imminent drilling of the Zad well on the Adam
prospect should hold considerable interest for our shareholders. Adam is a
moderate risk prospect targeting significant gas and gas condensate reserves in
close proximity to existing infrastructure. The target reservoir in the Zad well
is shallower than that in the Al Jariya well and, as the hole will be vertical
as opposed to deviated, our hope is that it will be drilled without significant
problems. The well is programmed to take around 100 days from time of spud.
Irrespective of the insurance claim and despite the cost overruns associated
with Al Jariya, Indago is well funded to drill Zad which is the final well in
the originally planned three well exploration programme."


Indago holds an approximate 50% interest in Oman Blocks 31 and 47. The Operator,
RAK Petroleum PCL, holds the balance of the interest in each case.


                                                                   28 April 2008


Enquiries:


Indago Petroleum Limited

David Bremner, CEO                               + 1 805 708 4892

Martin Groak, CFO                                +44 7949 209 301

Tim Eggar, Chairman                              +44 7771 597 499


JPMorgan Cazenove Limited                        +44 20 7588 2828

Barry Weir

Neil Haycock


Nabarro Wells                                    +44 207 634 4705

Marc Cramsie


College Hill Associates                          +44 20 7457 2020

Nick Elwes

Paddy Blewer


Website: www.Indagopetroleum.com


Notes to Editors:



Indago Petroleum

Indago Petroleum Limited is an oil and gas exploration company listed on the AIM
market of the London Stock Exchange. The Company is geographically focused in
the Middle East, currently exploring in the Sultanate of Oman, a politically
stable country with proven hydrocarbon reserves and an active gas market.

Following the disposal of its production and development assets and just over
50% of its exploration assets to RAK Petroleum PCL ("RAK Petroleum" or "the
Operator") in April 2007, Indago currently has an approximate 50% stake in three
exploration blocks onshore Oman (Blocks 31, 47 & 43A) operated by RAK Petroleum.

Review by Qualified person:


The technical information and opinions contained in this press release have been
reviewed by Don Scott, a qualified Geoscientist (BSc (Hons) Geology -
Southampton 1963, MSc Applied Geophysics - Birmingham 1964) and a Fellow of the
Geological Society of London since 1964.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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