88 Energy Regulatory News (88E)

28 October 2013 TANGIERS PETROLEUM LIMITED Quarterly Report for Period Ending 30 September 2013 The Directors of Tangiers Petroleum Limited ("Company") are pleased to providethe following report on its activities during the quarter ended 30 September2013. A copy of the full quarterly report, including the diagrams referred toin the text and the Appendix 5B (Quarterly Cash Flow Report), is available onthe Company's website at www.tangierspetroleum.com Highlights The joint Moroccan ministerial order approving the assignment of the 50%interest in the Tarfaya Offshore Block and operatorship to Galp Energia isexpected soon. Planning of the initial Tarfaya Offshore Block exploration well, TAO-1,continued with a view to spudding the well in the first half of 2014. During the quarter, the Company and CWH Resources Ltd ("CWH") continued to worktowards satisfying the conditions precedent under the Farmout Agreement betweenthe Company and CWH for Australian exploration permits WA-442-P and NT/P81. Theconditions precedent were due for completion by 30 September 2013. As thisdeadline was not met, the Company announced that it had terminated the Farm-outAgreement on 8 October to allow it to seek another farminee and submit anapplication for an extension to the time needed to complete the minimum workprogram from the National Offshore Petroleum Titles Administrator.Subsequently, the Company submitted an application for a suspension forWA-442-P. The Company received a response on 22 October restating the requestto provide a copy of the contract for a seismic vessel. The Company also continued to focus its efforts on expanding its position inAfrica with multiple opportunities presently being evaluated. Overview The key operational activities during the quarter were: * planning for drilling the first exploration well in Morocco with the draft basis of well design for the proposed exploration well (TAO-1) completed and well services contract awarded. Galp continued to move forward with environmental approvals and well planning for TAO-1 with a view to spudding the well in the first half of 2014. * calling for and evaluating tenders for the seismic survey vessel to be used in exploration permits WA-442-P and NT/P81. The Company provided assistance to CWH with the selection process. However, CWH did not reach a decision on the award of the seismic vessel contract within the timeframe needed to meet the government's work commitment requirements. The key corporate activities for the quarter were: * ensuring that the farm-out process with Galp remains on target as it is anticipated that the remaining conditions precedent will be closed out in the fourth quarter of this year. * the commencement of an intensive investor relations road show from 24 September to 17 October with presentations taking place in Perth, Sydney, Melbourne, Hong Kong and London. Of note, the Company announced that it had signed an underwriting agreementwith Foster Stockbroking Pty Ltd on 10 October, to underwrite the $0.16 listedoptions expiring on 31 October 2013, securing funding of A$7.1 million beforecosts. 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$0.065 million (June 2013 A$0.168 million); * administration and other operating costs of A$0.846 million (June 2013 A$0.843 million); * the exercise of 4,480,222 listed options at $0.16, netting the company $0.717 million; and * the company recorded a net cash outflow of A$0.125 million. At the end of the quarter, the Company had net cash reserves of A$1.62millionexcluding 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), Morocco comprises eight contiguouspermits covering an area of 11,281 sq km. The Tarfaya Block is situatedapproximately 600 km southwest of Morocco's capital, Rabat, inboard of 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 Joint Working Group established between the Company andGalp continued its work on the transition plan whereby Galp will assumeoperatorship. The Joint Working Group was designed to ensure that operationsrun smoothly with minimal delays in regard to the Tarfaya Work Program. The following work was undertaken by the Joint Working Group: * continued geophysical interpretation of the Assaka 3D seismic survey including maturation of the well location to test the Trident structure in an optimal location; * further refinement of the preliminary basis of well design for the first exploration well; and * the award of the well services contract. The Assaka 3D seismic data covers the Trident, Assaka and TMA prospects,certified 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 sq 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 60m)with extensive 2D and modest 3D seismic coverage. During the quarter, the joint venture partners and CWH continued to worktowards satisfying the conditions precedent under the Farmout Agreement betweenthe Company and CWH for Australian exploration permits WA-442-P and NT/P81.This included the planning of the acquisition of 3D seismic data across the twocontiguous permits, specifically the calling for and evaluation of tenders forthe seismic vessel which were submitted by 13 September 2013. The conditionsprecedent were due for completion by 30 September 2013. As this deadline wasnot met, the Company announced that it had terminated the Farm-out Agreement on8 October to allow it to seek another farminee and submit an application for anextension to the time needed to complete the minimum work program from theNational Offshore Petroleum Titles Administrator. Subsequently, the Companysubmitted an application for a suspension for WA-442-P. The Company received aresponse on 22 October restating the request to provide a copy of the contractfor a seismic vessel. NT/P83 Exploration Permit, Offshore Darwin, Arafura Sea (100% and Operator) Following extensive assessment, the Company has decided to surrender thispermit and an application for surrender has been submitted to NOPTA. 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 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 FactorProject 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 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 has 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 Peel Hunt LLP (Joint AIM Broker)Mr Richard CrichtonMr Andy Crossley+ 44 20 7418 8900 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