Edison equity research available

Edison Investment Research initiates coverage on Tangiers Petroleum.

Tangiers Petroleum is a chance to invest in a pure-play, binary exploration well with potentially very large upside. The company holds a 25% working interest in the Tarfaya offshore block, Morocco. Together with operator GALP, Tangiers will be drilling the TAO-1 well, targeting up to 758mmbbl unrisked potential across three horizons, with a projected mid-June spud date. With the recent successful equity raise in May and partial carry from GALP, the company should be fully funded to drill the estimated US$75m well. Attractive fiscal terms imply that a discovery of any size would be a transformational event for Tangiers. Our RENAV, based on a risked TAO-1 well, is 39p/share, though success could see multiples of this.

Tangiers Petroleum is an ASX- and AIM-listed, Perth-based E&P with a 25% working interest in the Tarfaya Offshore Block, Morocco. The TAO-1 well, targeting 758mmbbl gross best estimate, is due to spud in June.

Click below to view the full report.

http://www.rns-pdf.londonstockexchange.com/rns/4552I_-2014-5-30.pdf