Last checked at 22 May 2013 07:00
TANGIERS PETROLEUM LIMITED - Tangiers executes farm-out agreementTANGIERS PETROLEUM LIMITED - Tangiers executes farm-out agreement
PR Newswire
London, May 22
22 May 2013
TANGIERS PETROLEUM LIMITEDTangiers executes farm-out agreement on Australian exploration acreage
Deal gives Tangiers ongoing exposure to the exploration upside while enablingit to focus its resources on acquiring interests in African oil and gas assets
Tangiers Petroleum Limited (ASX: TPT; AIM: TPET) (Tangiers or the Company) ispleased to announce the execution of its Farm-Out Agreement with CWH Resources(ASX: CWH) and Ansbachall Pty Limited covering two of Tangiers' Australianexploration permits.
The Farm-Out Agreement covers the permits WA-442-P and NT/P81, which arelocated in the southern Bonaparte Basin, about 250km south-west of Darwin (seeannouncements dated December 3, 2012 and May 10, 2013).
The participating interests of the parties from the date of execution are:
Tangiers 27%Ansbachall 3%CWH 70%Under the Farm-out Agreement, CWH will fund all costs and expenses associatedwith seismic work, drill planning and exploration drilling within the permitareas up to a cap of A$35 million. Once CWH has spent that amount, Tangierswill be required to pay 27% of the ongoing costs relating to exploration andoperations.
The Farm-Out Agreement is subject to conditions precedent including Tangiersobtaining from the relevant government authority an extension of the time tocomplete the minimum work commitments, and an agreement between Tangiers andCWH on the terms of the joint operating agreement.
The execution of the Farm-Out Agreement represents another key milestone inTangiers' strategy to build an international oil and gas company with stronggrowth prospects.
The Farm-Out Agreement is consistent with the Company's stated plan to eitherreduce or eliminate altogether its near-term expenditure commitments on itsexisting assets while retaining significant exposure to their potential upside.
At the same time, Tangiers is seeking opportunities to acquire interests inAfrican petroleum assets, either onshore or in shallow water, with strongexploration potential and ultimately cash flow.
Eve HowellExecutive ChairmanTangiers 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 4090Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+44 20 7920 3150