Last checked at 10 May 2013 07:00
TANGIERS PETROLEUM LIMITED - Tangiers takes another key step in growth strategyTANGIERS PETROLEUM LIMITED - Tangiers takes another key step in growth strategy
PR Newswire
London, May 9
10 May 2013
TANGIERS PETROLEUM LIMITED Tangiers takes another key step in growth strategy with agreement on Australian farm-out dealTangiers Petroleum Limited (ASX: TPT; AIM:TPET) (Tangiers or the Company) ispleased to announce that its Board has approved the final terms of its Farm-OutAgreement with CWH Resources Limited (ASX:CWH) (CWH) and Ansbachall Pty Limited(Ansbachall) covering two of Tangiers' Australian exploration permits (theFarm-Out Agreement).
Tangiers has also been informed that the Boards of CWH and Ansbachall haveapproved the final terms and conditions of this Farm-Out Agreement, which willbe executed by the parties at a signing ceremony to be held during the weekcommencing 20 May 2013.
The Farm-Out Agreement covers the permits WA-442-P and NT/P81, which arelocated in the southern Bonaparte Basin, about 250 km south-west of Darwin (seeASX announcement dated December 3, 2012).
Subject to completion, the participating interests of the parties will be:
Tangiers 27% Ansbachall 3% CWH 70%From the date of execution of the Farm-Out Agreement, CWH will fund all costsand expenses associated with seismic work, drill planning and explorationdrilling within the permit areas up to a cap of A$35 million. Once CWH hasspent that amount, Tangiers will be required to pay 27% of the ongoing costsrelating to exploration and operations.
Agreement on the terms of the Farm-Out Agreement represents another keymilestone in Tangiers' strategy to build an international oil and gas companywith strong growth 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 Chairman 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