Following the mechanical failure of two high profile wells during 2008, Indago and its Operator are working to schedule the drilling of replacement wells for the Al Jariya 1 well in Block 31 and the Zad well in Block 47. Timing will be dependent on the completion of detailed drilling engineering analysis, the securing of long-lead tubulars and rig availability
The recently completed exploration campaign comprising three wells
Hawamel-1 (on the Izz prospect in Block 47, Oman) was drilled during 4Q06 and has been suspended for possible future re-entry following further review of the low porosity, low permeability reservoir rocks encountered in the prospective reservoir section. This well was immediately followed by Al Jariya-1 on the Jebel Hafit prospect. After a very difficult drilling operation, this well was plugged and abandoned during 2Q08 after failing to reach objective depth due to a blowout and stuck drillpipe. The rig then moved to the Adam prospect in Block 47 where the Zad 1 well was spudded in May 2008. This well also had to be abandoned at relatively shallow depth due to severe tectonic instability related to proximity to a shallow thrust fault.
Pursuit of new opportunities to secure additional acreage
As part of the 2007 sale of the company's production and development assets to RAK Petroleum, an Area of Mutual Interest (AMI) agreement has been signed between the two companies. This agreement is for an initial period of two years and covers Oman and the UAE and requires either company to offer the other company a ground floor 50% interest in any opportunities secured in the AMI. The agreement is renewable for one year terms by mutual agreement.
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