Indago sells up in Oman
Posted: 14 April 2009
Indago Petroleum Limited reported that RAK Petroleum Oman Limited, a wholly owned subsidiary of RAK Petroleum PCL, has acquired Indago's wholly owned subsidiaries holding approximately 50 per cent interests in Blocks 31, 47 and 43A in Oman.
RAK Petroleum already held the balance of the interests and is the Operator of the Licences.
"In March 2007 Indago re-focused as a pure oil and gas explorer after the sale of production and certain exploration assets to RAK Petroleum," said David Bremner, CEO of Indago.
"Subsequently, Indago has participated with RAK Petroleum in two exploration wells, each of which proved impossible to complete as planned, spending around $41 million before insurance recoveries. We understand the wish of our former partner to press ahead with further exploration of these areas. The costs, however, will be very considerable and this agreement assures us of strategic flexibility."
As a result of the sale, Indago will have no continuing work obligations in Oman and, following the recently announced settlement of the insurance claim in relation to the Al Jariya 1 well, cash balances of approximately $35 million.
This figure is after a payment by Indago to RAK of approximately $3.5 million in relation to a release, subject to certain warranties, from all possible obligations arising from their joint activities and past transactions.
Group shareholders' funds, after writing off drilling and development costs, are represented by the cash balances.
Posted by Richard Price, Editor, EnergyME.com
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