88 Energy Regulatory News (88E)

18 July 2013 TANGIERS PETROLEUM LIMITED Quarterly Report for Period Ending 30 June 2013 The Directors of Tangiers Petroleum Limited ("Company") are pleased to providethe following report on its activities during the quarter ended 30 June 2013. Acopy of the full quarterly report, including the diagrams referred to in thetext and the Appendix 5B (Quarterly Cash Flow Report), is available on theCompany's website at www.tangierspetroleum.com Highlights All documents required for the assignment of the 50% interest and operatorshipto Galp Energia were finalised with the Office National des Hydrocarbures etdes Mines (ONHYM) for submission to the Moroccan Ministries of Energy andFinance for their approval. The Farmout Agreement for Australian permits WA-442-P and NT/P81 between theCompany and CWH Resources Ltd was executed on 21 May 2013. During the quarter, the Company has focused its efforts on expanding itsposition in Africa with multiple opportunities presently being evaluated. Overview The key operational activities during the quarter were: * Planning for the first exploration well in Morocco is progressing with the draft basis of well design (BoWD) for the proposed exploration well (TAO-1) completed and the Environmental Impact Assessment sevices contract awarded to ERM. * Preparation for the WA-442-P and NT/P81 3D seismic survey is ongoing with shortlisting of potential appropriate vessels and a referral under the Environment Protection and Biodiversity Conservation Act 1999 lodged with the Department of Sustainability, Environment, Water, Population and Communities. Work also continued on the Environmental Impact Plan. The key corporate activities for the quarter were: * The Farm-out process with Galp Energia is on target to close out the remaining conditions precedent in the third quarter of this year. * Finalising a binding farmout agreement with CWH Resources which has them farming-into and becoming operator of the WA-442-P and NT/P81 permits. * Appointment of two new brokers: + Peel Hunt LLP (London) + Foster Stockbroking (Sydney) * Company's AGM was held on 30 May. * Ms Iva Stejskal's role in Tangiers as General Manager - Legal and Corporate has been expanded to include the role of Joint Company Secretary. Financial The ASX Appendix 5B attached to this report contains the Company's cash flowstatement for the quarter. The significant elements for the period were: * exploration and evaluation expenditure reduced to A$0.168 million (Mar 2013 A$0.202 million); * administration and other operating costs of A$0.843 million (Mar 2013 A$0.759 million); and * the company recorded a net cash outflow of A$1.013 million. At the end of the quarter, the Company had net cash reserves of A$1.7millionexcluding the US$3 million bank guarantee in Morocco. On satisfaction of the remaining conditions precedent for the Galp farm-outagreement which relate to approvals from the Moroccan government, cash reserveswill be augmented by US$7.5 million of back costs and return of the US$3million bank guarantee. New Ventures The Company's ongoing strategy is to review and acquire new ventureopportunities in Africa to create a diversified and balanced portfolio. During the last quarter, the Company evaluated multiple selected New Ventureopportunities in various African countries. The focus continues to be onfarm-in opportunities both onshore and in shallow offshore waters in a numberof prospective basins. Potential corporate deals are also being considered. Tarfaya Offshore Block - Morocco (75% and Operator) The Tarfaya Offshore Block (Figure 2), offshore Morocco comprises 8 contiguouspermits covering an area of 11,281 sq km. The Tarfaya Block is situatedapproximately 600 km southwest of Morocco's capital, Rabat, inshore from theCanary Islands on the Atlantic Margin. The Block contains multiple prospectsand leads within Jurassic sediments as well as potential within the Tertiary,Cretaceous and Triassic Formations. During the quarter the following activities have been completed or are inprogress: * The Joint Working Group established with Galp Energia continues its work on the transition plan whereby Galp Energia assumes operatorship. The Joint Working Group is designed to ensure that operations run smoothly with minimal delays in regard to the Tarfaya Work Program. * The following work was undertaken by the Joint Working Group: * Geophysical interpretation of the Assaka 3D seismic survey continues including maturation of the well location to test the Trident structure in an optimal location; * Preliminary basis of well design for the first exploration well has been prepared; and * Environmental Impact Assessment service contract has been awarded to ERM. The new Assaka 3D seismic data covers the Trident, Assaka and TMA prospectscertified by ISIS Petroleum Consultants (ISIS) and Netherland, Sewell &Associates, Inc (NSAI). The La Dam prospect in the south of the Tarfaya Blockis covered by a 580 km 3D seismic survey acquired in 2006 and reprocessed in2011 by the Company. The combined total best estimate gross unrisked originaloil-in-place for the four Jurassic prospects in the Tarfaya block is 4,335million barrels. WA-442-P (Turtle) and NT/P81 (Barnett) (90% and Operator) These two contiguous exploration permits encompass 3,900 sq km and are locatedapproximately 20 km offshore in the Commonwealth waters off the coasts ofWestern Australia and Northern Territory, approximately 320 km southwest ofDarwin (Figure 3). The permits are located in shallow water (less than 60 m) withextensive 2D and modest 3D seismic coverage. Prospectivity within the WA 442-Pand NT/P81 permits includes the: * undeveloped Turtle and Barnett Oil Fields discovered in 1984 and 1985; * Milligans Fan Oil Play comprising 14 leads with estimated combined mean unrisked oil-in-place of 683 million barrels for the Milligans Leads; the combined estimate for gross unrisked mean Prospective Resources is 218 million barrels of oil (Competent Persons Report, ISIS); and * deeper gas play - the estimated gross mean unrisked Prospective Resources for the Nova Prospect is 3.46 trillion cubic feet of gas. During the quarter the joint venture partners continued with planning of theacquisition of 3D seismic across the two contiguous permits and work is ongoingin advance of the 3D seismic acquisition program specifically: * a shortlist was prepared of potential appropriate seismic survey vessels post the tendering process; * an environmental plan was submitted to NOPSEMA: and * a referral under the Environment Protection and Biodiversity Conservation Act 1999 has been submitted to the Department of Sustainability, Environment, Water, Population and Communities in support of the 3D Nova Seismic Acquisition. NT/P83 Exploration Permit, Offshore Darwin, Arafura Sea (100% and Operator) The NT/P83 Exploration Permit is located some 120 km north of Darwin in theArafura Sea and covers 15,540 sq km in water depths less than 200 m. No wellshave been drilled in the block although there have been shows of hydrocarbonsin wells drilled to the east and west of the NT/P83 area. Evaluation byTangiers Petroleum has shown that there are three main play types in NT/P83: * Palaeozoic subcrop and deep anticlinal closures; * Jurassic reactivated tilted fault blocks and inversion structures; and * Cretaceous clastic stratigraphic plays in prograding shelf sands (Puffin Formation and Darwin Radiolarite). The initial focus is on planning to acquire approximately 500 line km of 2Dseismic data. Hydrocarbons in Place Summary Detailed below are the estimated oil and gas-in-place estimates for theCompany's portfolio of project interests. Gross (100%) Tangiers Net Attributable Interest Project Low Best/ High Low Best/ High Operator Mean Mean Oil-in-Place Estimates (unrisked) (All figures in millions of barrels) Morocco 1,564 4,335 12,399 75% 1,173 3,521 9,299 Tangiers Milligans Fan 118 683 1,489 90% 106 615 1,340 TangiersLeads,Australia Total 1,682 5,018 13,888 1,279 4,136 10,639ProspectiveResources Gas-in-Place Estimates (unrisked) (all figures in trillions of cubic feet) Nova Prospect, 0.375 6.930 15.704 90% 0.338 6.24 14.134 TangiersAustralia Prospective Resources Summary Detailed below are the estimated Prospective Resources delineated across theCompany's portfolio of project interests. Gross (100%) Tangiers Net Attributable Risk Interest Factor Project Low Best/ High Low Best/ High Operator Mean Mean Prospective Oil Resources (unrisked) (All figures in millions of barrels) Morocco 156 867 4,959 75% 117 650 3,720 unrisked Tangiers Milligans Fan 35 218 505 90% 32 196 455 unrisked TangiersLeads,Australia Total 191 1,085 5,464 149 846 4,175ProspectiveResources Prospective Gas Resources (unrisked) (all figures in trillions of cubic feet) Nova Prospect, 0.17 3.46 7.83 90% 0.15 3.11 7.04 unrisked Tangiers Qualified Person The information in this announcement was produced by Mr Brent Villemarette whois an Executive Director of Tangiers. Mr Villemarette is a petroleum engineerwith over 30 years of experience and is a member of the Society of PetroleumEngineers. Mr Villemarette have reviewed this announcement and consent to itsrelease. Terminology and standards adopted by the Society of Petroleum Engineers ("SPE")"Petroleum Resources Management System" have been applied in producing thisdocument. Under these standards: "Undiscovered Oil Initially in Place" is that quantity of oil which isestimated, on a given date, to be contained in accumulations yet to bediscovered. The estimated potentially recoverable portion of Undiscovered OilInitially in Place is classified as Prospective Resources, as defined below;and "Prospective Resources" are those quantities of oil or gas which are estimated,on a given date, to be potentially recoverable from undiscovered accumulations. ROBERT DALTONJoint Company SecretaryTangiers Petroleum LimitedLevel 2, 5 Ord StreetWest Perth WA 6005, AustraliaPh: + 61 8 9485 0990www.tangierspetroleum.com Contacts RFC Ambrian Limited (Nominated Adviser)Mr Stuart Laing+ 61 8 9480 2506 Peel Hunt LLP(Joint AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7493 8188 Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+ 44 20 7920 3150