RNS Number:4593I
Crosby Capital Partners Inc
26 November 2007

                          Crosby Capital Partners Inc.



(26) November 2007



IB Daiwa Announces the Suspension of Drilling at the Endeavor AMI Prospect



Shareholders should be aware that IB Daiwa Corporation ("IB Daiwa" - Jasdaq
3587) has today announced the suspension of drilling at the Endeavor AMI
prospect. An English translation of the full announcement is available on IB
Daiwa's website, www.ibdaiwa.co.jp. A summary is provided below.



Crosby owns, through two wholly owned subsidiaries, 86,700,000 shares,
representing 20.33% of IB Daiwa's issued share capital.  The holdings are
classified as 'financial assets at fair value through profit and loss' and are,
therefore, marked-to-market with gains and losses being recognised in the income
statement.





                   Announcement of the Suspension of Drilling
                            at the Endeavor Prospect



IB Daiwa (the "Company") announces that the Pel-Tex SL2038#1 well, which is
drilling on the Endeavor AMI Prospect onshore Louisiana, USA ("the Well"), has
reached a true vertical depth of 19,003 ft (a measured depth of 19,146 ft).  At
this depth the Well has not yet reached its primary target of the Planulina
sandstone, which is now expected to be a few hundred feet below the current Well
bottom.  Consequently, the JV has agreed to deepen the Well to 20,000ft, and a
drilling plan and its associated costs have been approved by the JV.



However, it has also been decided to suspend the well at this depth while the JV
seeks new insurance coverage for further drilling of the Well beyond the current
depth.  Drilling will resume at a later date when new insurance coverage is
obtained.  Details of the reasons for the suspension are set out below.



1) Background

Since the commencement of the drilling of the Well in November 2006, much time
has been spent handling engineering problems caused by high pressures in the
Well. These conditions have led to the drilling of three separate sidetracks,
and required that all of the high pressure zones encountered be put behind
casing to maintain well safety. As a result, it is taking much longer to reach
the main target zone than planned.  Most of the costs associated with rectifying
the problems have been recovered under an insurance policy taken out to protect
against such contingencies.



2) Reason for the decision to suspend the Well

On 23rd November 2007 (Local Time), the JV was informed by the insurers who have
provided cover to date that the insurance of the drilling operations moves onto
a different basis below the current depth of the Well.  Negotiations with the
insurers have since been on-going and at this stage it has not yet been possible
to negotiate appropriate arrangements with the insurers.  Both IB Daiwa and
Lodore have a corporate policy of not drilling a well unless insured against
loss of well control, and the potential liabilities arising from consequential
damage to life, the environment and property.



The decision has therefore been made to suspend the Well, whereby it is plugged
and made safe, and leave it in a state of readiness for the resumption of
drilling, once new insurance arrangements have been made.  It is not possible to
estimate at this stage how long it may take before the Well can be re-entered.
This will principally depend upon the resolution of the insurance cover, and the
contracting of a new rig, but directors regret to advise that a delay of at
least several months must be anticipated.



3) Impact to the current year fiscal year forecast

The result of the drilling of the Well will have a material financial impact to
the Company, as explained in detail in "FY2007 H1 Financial Results" dated 15
November 2007. At this stage, it is not possible to say whether the result of
the drilling becomes available before the filing of the current fiscal year
financial report so that the financial impact of the drilling can be included in
this fiscal year financial results or it will be included in later fiscal
period. As such, the Company keeps the net profit forecast for the current
fiscal year in two cases depending on the result of the drilling (the low case
provides for extraordinary losses to be recognised in case the drilling is a
failure; the base case assumes the drilling is a success or the result of the
drilling is not made available before the filing of the current fiscal year
financial report, and does not provide for such losses), and there is no
revision to the current fiscal year forecast arising from the suspension of the
Well.

.





ABOUT CROSBY CAPITAL PARTNERS



Crosby Capital Partners Inc. is a leading independent deal-focused Asia-oriented
merchant banking and asset management group.   Crosby is quoted on the AIM
market of the London Stock Exchange.  Further details can be found on the
Company's website www.crosby.com.



For further information on Crosby please contact:



Steve Fletcher, Chief Operating Officer on +44 20 7590 2800



Ends






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