88 Energy Regulatory News (88E)

29 April 2014 TANGIERS PETROLEUM LIMITED Quarterly Report for Period Ending 31 March 2014 The Directors of Tangiers Petroleum Limited ("Tangiers" or the "Company") arepleased to provide the following report on its activities during the quarterended 31 March 2014. A copy of the full quarterly report, including thediagrams referred to in the text and the Appendix 5B (Quarterly Cash FlowReport), is available on the Company's website at www.tangierspetroleum.com Highlights * The Company announced the appointment of Mr David Wall as Managing Director on 15 April 2014 along with the appointments on 9 April 2014 of Mr Michael Evans as Non-executive Chairman and Dr Stephen Staley as Non-executive Director. These appointments replaced Ms Eve Howell and Mr Max de Vietri, who resigned from the Board on 4 February 2014. * The Ralph Coffman Jack-up Rig has been secured by the Joint Venture to undertake exploration drilling in the Tarfaya Offshore Block, Morocco. The exploration well TAO-1 in the Tarfaya Offshore Block is scheduled to spud 2Q 2014. * The reimbursement of the back costs, US$7.5 million, payable under the Galp Energia ("Galp") Farm-Out Agreement is expected shortly, on satisfaction of the remaining conditions precedent, being the signature of the relevant association contract. This will also signal the return of the US$3 million bank guarantee. These funds will contribute to the 33% share of any costs in excess of the US$33m free carry provided for by the Farm-Out Agreement for the drilling of the TAO-1 well which the Company is contractually obliged to pay. * The Bonaparte Basin permits WA-442-P and NT/P81 were formally cancelled by the Joint Authorities. * The Company's off-market takeover bid of Jacka Resources Limited, (ASX: JKA), lapsed on 18 March at 5.00pm (Western Standard Time) as the minimum acceptance conditions were not met. Overview The key operational activities of Tangiers during the quarter were: * an additional site survey was completed over the proposed TAO-1 location and confirmed the compatibility of the site for use of a jack-up rig; * Galp, on behalf of the Joint Venture, executed a Novation Agreement to secure access to the Ralph Coffman Drilling Unit; * Galp continued to advance well planning, procurement and logistics for the exploration well TAO-1 which is expected to commence drilling in 2Q 2014; * Tangiers advised on 13 January that the Petroleum Exploration Permits WA-442-P and NT/P81 ("Permits") in the Bonaparte Basin were likely to be cancelled by the relevant State Joint Authorities. Tangiers subsequently announced on 24 March that the respective Joint Authorities had formally cancelled the Permits. The key corporate activities for the quarter were: * the Company's first and foremost priority during the quarter was to seek and finalise the selection and appointment of new directors and resume trading as soon as possible on both the ASX and AIM markets. This involved an extensive industry wide search using the services of an independent recruitment agency and was completed with the appointments of Mr Michael Evans and Dr Stephen Staley as Non-executive Chairman and Non-executive Director respectively, and with the announcement of the appointment of Mr David Wall on 15 April 2014 as Managing Director. * Australian Securities and Investment Commission ("ASIC") granted the Company an additional month to lodge both their Financial and Annual Reports for the year ended 31 December 2013. The grace period allowed Tangiers time to appoint new Board members and meet the quorum requirement to be able to issue and sign the Financial Report; * the Bidder's Statement pertaining to the recommended off-market takeover offer for Jacka Resources Limited was lodged with ASIC on 20 January 2014; * the Company's off-market takeover bid of Jacka Resources Limited, (ASX: JKA), lapsed on 18 March at 5.00pm (Western Standard Time) as the minimum acceptance conditions were not met. 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 of A$0.019 million (December 2013 A$0.272 million); * administration and other operating costs of A$2.268 million (December 2013 A$1.214 million); and * a net cash outflow of A$2.543 million recorded by the Company. At the end of the quarter, the Company had net cash reserves of A$3.545 millionexcluding the US$3 million bank guarantee currently in Morocco. The reimbursement of the back costs, US$7.5 million, is expected to be paidshortly, on satisfaction of the remaining conditions precedent, being thesignature of the relevant association contract. This will also signal thereturn of the US$3 million bank guarantee. These funds will contribute to the33% share of any costs in excess of the US$33m free carry provided for by theFarm-Out Agreement for the drilling of the TAO-1 well which the Company iscontractually obliged to pay. New Ventures With the new Board in place, drilling of the TAO-1 well offshore Morocco,currently scheduled for 2Q 2014, and the cancellation of the Australianpermits, the directors have commenced a strategic review of the Company andprospects for the future. Tarfaya Offshore Block - Morocco (25%) The Tarfaya Offshore Block ("Block"), Morocco comprises eight contiguouspermits covering an area of 11,281 sq km. The Block is situated approximately600 km southwest of Morocco's capital, Rabat, inboard of the Canary Islands onthe Atlantic Margin. The Block contains multiple prospects and leads withinJurassic sediments as well as potential within the Tertiary, Cretaceous andTriassic Formations. During the quarter, the TAO-1 exploration well site survey was completedconfirming compatibility for the use of a jack-up rig. Detailed planning andprocurement for the exploration well is progressing. The Ralph Coffman rig wassecured by Galp Energia, as Operator, to drill the exploration well TAO-1 in 2Q2014. The Assaka 3D seismic data covers the Trident, Assaka and TMA prospects,certified by Netherland, Sewell & Associates, Inc (NSAI). The La Dam prospectin the south of the Tarfaya Block is covered by a 580 sq km 3D seismic surveyacquired in 2006 and reprocessed in 2011 by the Company. WA-442-P (Turtle) and NT/P81 (Barnett) (90% and Operator) These two contiguous exploration permits are located approximately 20 kmoffshore in Commonwealth waters off the coasts of Western Australia andNorthern Territory, approximately 320 km southwest of Darwin. In October the Company terminated the Farm-Out Agreement ("FOA") with CWHResources Ltd as the conditions precedent to the FOA were not satisfied. Anextension of time was requested from National Offshore Petroleum TitlesAdministrator ("NOPTA") to allow the Company to seek an alternate farminee. Theextension was not granted and WA-442-P and NT/P81 were formally cancelled bythe respective Joint Authorities in 1Q 2014. Additional Information required under ASX LR 5.4.3 List of petroleum tenements held by Tangiers at quarter ending 31 March 2014: Reference Project Name Location Company Acquired during Disposed of Interest the Quarter during the Quarter Tarfaya Tarfaya Offshore Morocco 25% - - Block WA-442-P Turtle WA - - 90% NT/P81 Barnett NT - - 90% Unless stated elsewhere in this report, there were no beneficial interests heldin farm-in or farm-out agreements at the end of the quarter and no beneficialinterest in farm-in or farm-out agreements acquired or disposed of during thequarter, and there have been no activities relating to oil and gas productionor development during the quarter. Hydrocarbons in Place Summary Detailed below are the estimated oil estimates for the Company's projectinterest. Gross (100%) Tangiers Net Attributable InterestProject 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 25% 391 1,084 3,100 Galp Energia Total 1,564 4,335 12,399 391 1,084 3,100ProspectiveResources Prospective Resources Summary Detailed below are the estimated Prospective Resources delineated across theCompany's project interest. Gross (100%) Tangiers Net Attributable Risk Interest FactorProject Low Best/ High Low Best/ High Operator Mean MeanProspective Oil Resources (unrisked) (All figures in millions of barrels) Morocco 156 867 4,959 25% 39 217 1,240 unrisked Galp Energia Total 156 867 4,959 39 217 1,240ProspectiveResources 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 has reviewed this announcement and consents 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 Oliver Morse / Ms Trinity McIntyre+61 8 9480 2500 Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150