Indago Petroleum Limited is planning to wind up the Company and return the capital of the business to shareholders.

On 14 April 2009 Indago announced the sale to RAK Petroleum Oman Limited (RAK) of its remaining exploration licence interests in Oman. Following the sale, the Company has cash balances of approximately $35 million and no other significant assets. It was also announced that, as a result of the sale, Indago had become an Investing Company under the AIM Rules and is required, firstly, to seek shareholder approval of the future strategy and, secondly, to conclude a major transaction within 12 months of such shareholder approval.

Since the sale to RAK, Meridian Oil & Gas (Middle East) Limited, the holder of 22,999,999 ordinary shares in Indago (43.11% of the total issued share capital) has informed the Board that it will not support any proposed future strategy other than the return of all the Company's available cash to shareholders. After consideration, the Board has concluded that, in these circumstances, any proposal for an alternative strategy is not practicable and that winding up Indago represents the only available way forward.

The Board proposes, therefore, to return the available cash to shareholders bearing in mind the requirement to meet the contractual obligations of the Company and to protect the interests of the shareholders as a whole. It is envisaged that this will be effected by seeking shareholders' approval of such a course of action at the forthcoming Annual General Meeting (AGM) possibly including the appointment of a liquidator. The AGM is expected to take place on 10 July 2009. Before then, the Company will investigate the best means by which to return cash to shareholders. The results for the year to 31 December 2008 are expected to be released during the week ending 22 May 2009.

Tim Eggar, Chairman of Indago, said,"The Board has considered a wide variety of potential transactions whereby the shareholders could have benefited from the investment of Indago's funds in new upstream ventures. The dynamics of the sector mean that attractive investment opportunities do exist and Indago was well advanced in maturing certain of these. In practice, the Board has no choice other than to be cognisant of Meridian's views and, if alternative initiatives are never going to get their support, it is better that the available cash be returned to shareholders.

I wish to pay tribute to the considerable hard work of the executive management in recent months in their efforts to maximise cash and minimise liabilities whilst identifying and pursuing investment opportunities. The Board knows that it can rely on their professionalism to implement the winding up of Indago in an effective manner."

Tags: Indago Petroleum Limited