Last checked at 29 Apr 2013 07:00
TANGIERS PETROLEUM LIMITED - Quarterly Report March 2013TANGIERS PETROLEUM LIMITED - Quarterly Report March 2013
PR Newswire
London, April 29
29 April 2013
TANGIERS PETROLEUM LIMITEDQuarterly Report for Period Ending 31 March 2013
The Directors of Tangiers Petroleum Limited ("Company") are pleased to providethe following report on its activities during the quarter ended 31 March 2013.A copy 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
HighlightsThe Moroccan Ministry of Energy, Mines, Water and Environment granted the FirstExtension Period (to August 2014) to DVM International (Tangiers 100%subsidiary) and Office National des Hydrocarbures et des Mines (ONHYM) for theTarfaya Offshore permits; this satisfies one of the key conditions precedent tothe Galp Energia Farmout Agreement.
During the quarter, the Company's focus transitioned from Company consolidationto obtaining new projects in Africa and a number of opportunities have beenidentified and are being evaluated.
OverviewThe key operational activities for the quarter were:
* Planning for the first exploration well in Morocco commenced with the tendering process for the drilling rig in progress and the site survey and Environmental Impact Statement having been initiated; * Preparing for the WA-442-P and NT/P 81 3D seismic survey with the shortlisting of potential appropriate vessels and a referral under the Environment Protection and Biodiversity Conservation Act 1999 lodged in early April with the Department of Sustainability, Environment, Water, Population and Communities. Work is also in progress on the Environment Plan.The key corporate activities for the quarter were:
* The Farm-out process with Galp Energia was progressing to close out the remaining conditions precedent; * Significant progress was made in developing the binding farmout agreement with CWH Resources for them to farm in to the WA-442-P and NT/P81 permits; * An eight day road show was completed in London by the Chairman and Non-Executive Director with visits to 25 financial institutions and 9 media companies; and * The strengthening of the management team continued with the appointment of Ms Iva Stejskal as General Manager - Legal and Corporate. FinancialThe Appendix 5B (Quarterly Cash Flow Report), which is available on theCompany's website, contains the Company's cash flow statement for the quarter.The significant elements for the period were:
* exploration expenditure reduced to A$0.202 million (Dec 2012 A$0.711 million) reflecting the completion of costs associated with the processing of the Assaka 3D seismic data and the shift of expenditures in Morocco to the farminee, Galp Energia; * administration and other operating costs amounted to A$0.759 million (Dec 2012 A$0.772 million); and * the company recorded a net cash outflow of A$ 1.421 million.At the end of the quarter, the Company had net cash reserves of A$2.7millionexcluding 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 VenturesThe Company's strategy is to review and acquire new venture opportunities inAfrica to create a diversified and balanced portfolio.
During the last quarter, the Company evaluated several selected new ventureopportunities in several African countries. This has included farm-inopportunities both onshore and in shallow offshore waters in a number ofprospective 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:
* A Joint Working Group has been established with Galp Energia as part of the transition plan to Galp Energia assuming operatorship. The purpose of the Joint Working Group is 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: * Preliminary geophysical mapping of the Assaka 3D seismic data by Tangiers which confirmed and delineated the Trident structure and upgraded the POS to 23%; * Finalisation and evaluation of the Assaka 3D seismic interpretation including maturation of the well location to test the Trident structure in an optimal location; * Planning in regard to the first exploration well: + the tendering process has been initiated to secure an appropriate drilling rig; + site survey initiated; + Environmental Impact Statement in progress. * Geochemical study on core material from the Tarfaya Block and surrounds of potential source rocks; and * Preliminary screening results have identified a number of potential source rocks along with two oil stained samples which warrant further analysis.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 ofnorthern Western Australia and Northern Territory, approximately 320 kmsouthwest of Darwin (Figure 3). The permits are located in shallow water ( * 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 commenced planning theacquisition of 3D seismic across the two contiguous permits and work is ongoingin advance of the 3D seismic acquisition program specifically:
* a shortlist has been prepared of potential appropriate seismic survey vessels post the tendering process; * an environment plan has been written for submission to NOPSEMA; * stakeholder consultation was initiated and concluded for the proposed 3D seismic acquisition area and surrounding region; * a referral under the Environment Protection and Biodiversity Conservation Act 1999 was submitted in early April 2013 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 MeanOil-in-Place Estimates (unrisked) (All figures in millions of barrels)Morocco 1,564 4,335 12,399 75% 1,173 3,521 9,299 TangiersMilligans Fan 118 683 1,489 90% 106 615 1,340 TangiersLeads,AustraliaTotal 1,682 5,018 13,888 1,279 4,136 10,639ProspectiveResourcesGas-in-Place Estimates (unrisked) (all figures in trillions of cubicfeet)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 MeanProspective Oil Resources (unrisked) (All figures in millions of barrels)Morocco 156 867 4,959 75% 117 650 3,720 unrisked TangiersMilligans Fan 35 218 505 90% 32 196 455 unrisked TangiersLeads,AustraliaTotal 191 1,085 5,464 149 846 4,175ProspectiveResourcesProspective Gas Resources (unrisked) (all figures in trillions of cubicfeet)Nova Prospect, 0.17 3.46 7.83 90% 0.15 3.11 7.04 unrisked Tangiers Qualified PersonThe 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 Secretary Tangiers 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 Old Park Lane Capital PLC (Joint AIM Broker)Mr Michael Parnes+ 44 20 7493 8188 Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+ 44 20 7920 3150