Tangiers Petroleum Have a Big Ambition
Tangiers Petroleum (LON:TPET) the dual listed (ASX:TPT/AIM:TPET) oil and gas exploration company led by new Executive Chairman Eve Howell has recently announced a proposed capital raising of up to $5.8 million through a share placement and share purchase plan to launch the first steps of its growth strategy. Tangiers Petroleum shares have been trading on the alternative investment market since February 2012 and is focused on unlocking oil and gas resources within its Moroccan and Australian acreage and attracting new project acquisitions through evaluating new onshore and shallow water African basin opportunities. [ref] 3 Feb 2012, Admission to trading on London’s AIM Market, http://www.investegate.co.uk/Article.aspx?id=20120203070000PEF72 [/ref] . Ms Eve Howell, with 40 year experience in the industry and having previously held senior roles for Australian exploration and production company Woodside Energy Ltd and Apache Energy Ltd, will spearhead the new aggressive growth strategy for Tangiers Petroleum with the aim of developing the Company into a substantial African petroleum group.
Commenting on the fundraising, Eve Howell, the Company's new Executive Chairman noted that: [ref] RNS 24 September 2012, TANGIERS PETROLEUM LIMITED http://www.investegate.co.uk/Article.aspx?id=20120924070000P2449 [/ref]
"This raising will enable us to hit the ground running,"
"We see the support shown for this capital raising and the investment by new institutional and existing shareholders as a strong endorsement of the strategy the new Board has undertaken and positions us strongly to fulfil our growth objectives. There are significant opportunities in Africa for Tangiers to acquire interests in exploration and development projects.
"As part of our strategy, we are looking for deals which have the potential to generate substantial returns for shareholders."
In Morocco, Tangiers hold eight permits on a 75% operator interest alongside the Moroccan State Government who are on a 25% carry through exploration, covering 15,041 km2. The acreage located on the East Atlantic Margin offshore North West Morocco is an underexplored are with only 4 wells previously drilled on the acreage, three of those back in the 1960s and 1 commitment well in the mid-eighties, however all 4 wells had hydrocarbon shows. In an independent report prepared by Netherland, Sewell and Associates which focused on Tangiers’ initial four Jurassic aged prospects; La Dam, Assaka, Trident and TMA. an un-risked best estimate prospective resource of 867 mmbbls of oil on a 100% basis with a high case estimate potential resource of 4,959 mmbbls of oil for the four prospects combined was reported. [ref] TPET Presentation 24 Sept 2012, http://clients2.weblink.com.au/clients/tangierspetroleum/article.asp?asx=TPT&view=6605104 [/ref]
Tangiers now expect to complete the process to find a farm-out partner for the Tarfaya offshore acreage and report their findings following a recent 3D seismic data acquisition, ahead of planning a 2 well campaign. The area is generating interest, and in recent weeks a couple of high profile deals have been announced covering two licenses to the North and North-East of Tangiers' Tarfaya block. The combined deals were worth over $100 million dollars and commit the farm-in partners Genel Energy (LON:GENL) and Cairn Energy (LON:CNE) to drill two wells in the area. Other London listed O&G companies with exposure to Morocco include, Fastnet Oil & Gas (LON:FAST), Serica Energy (LON:SQZ) and San Leon Energy (LON:SLE).
Commenting on the news, City house broker Old Park Lane, who have a target price of 150p for Tangiers Petroleum stated: [ref] Tangiers Petroleum: Recent Morocco news flow "very positive", says broker, 28 August 2012 - Proactive Investors, http://www.proactiveinvestors.co.uk/companies/news/47383/tangiers-petroleum-recent-morocco-news-flow-very-positive-says-broker--47383.html [/ref]
"The recent news flow from Morocco is a very positive indicator for Tangiers as it demonstrates the value currently represented by the offshore acreage,"
"Given that Tarfaya is larger than Foum Draa and Sidi Moussa combined with four large prospects already identified on the block, we believe that Tarfaya is likely to attract a significant amount of attention from potential farm-inees over the coming months."
In Australia Tangiers operates licenses on a 90-100% interest, which are located in the Southern Bonaparte Basin offshore, around 250km southwest of Darwin where the Northern Australia gas and LNG hub is based. One of its key Australian plays is the Turtle and Barnet oil fields which had oil discoveries in the mid-eighties where multiple oil bearing reservoirs were intersected, with production figures of 750-930 bopd (38 degree API) on a drill stem test, Tangiers are now considering development concepts for this area. Other key licenses include the Milligans Fan which has the potential for oil, with ISIS estimating unrisked oil in place of 683 mmbbls with a low to high case of 118 – 1,489 mmbbls, and the Nova and Super Nova which has large gas structures with multi TCF potential. The work programme for the Australian assets include, mapping, seismic studies, well planning and farming-out interest with ISIS Petroleum appointed for this task. [ref] OPLC, Milligans Formation valuation upside, April 2012, http://tangierspetroleum.com/~/media/Files/T/Tangiers-Petroleum/Attachments/broker-analyst-reports/TPET-03-04-12.pdf [/ref]
With new management at the helm and funds at hand things could progress a bit quicker now for Tangiers Petroleum who definitely have the big numbers to warrant a place on the research and watch list in my opinion.
Ticker code: TPET, Shares in issue: 107m Current SP: 19.75p Market Cap: £21.13m
Disclosure: The Author of this article holds shares in Tangiers Petroleum.
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8 comments
As rumoured, the news involved Tangiers Petroleum and a potential takeover of Jacka Resources.
With Jacka Resources also announcing a trading halt on the AEX prior to announcing a corporate transaction, the rumour going around is a tie up between the two of some sorts.
http://www.jackaresources.com.au/
Jacka Resources Limited is an ASX listed (ASX: JKA) oil and gas exploration and company with interests in Australia, Tunisia, Nigeria, Tanzania and Somaliland.
· Africa focussed company
· 2C Contingent Resources of 27 Million Barrels
· Pmean Prospective Resources of 106 Million Barrels
· Strong new ventures stream and screening process
· Jacka holds 15% of Bargou Block, Tunisia
· Jacka holds 15% equity of Block WA-399-P, North West shelf, Australia
· Jacka holds 5% of Aje Fields (OML113), Nigeria
· Jacka holds 30% of Odewayne Block, Somaliland
- Jacka holds 100% Ruhuhu Tanzania
Tangiers Petroleum #TPET released news last week that gives an update that things are progressing in Morocco. The big factor for me here is the fact it is Galp Energia that is leading the way and will be the operator.
They are progressing with the environmental approval and the survey vessel has mobilised to offshore Morocco and is preparing to start the site survey over the proposed Tao-1 first well location.
Investors were also informed that Galp is currently screening the market for potential rig sharing/sublet options and is preparing the invitation to tender documents for the rig.
Although Morocco E&P had attracted a muter of smaller players this year majors, in the form of BP, Chevron and Cairn have all announced new projects or buy-ins.
Of interest to Tangiers Petroleum shareholders prior to its Tao-1 well will be the results from other E&P companies, with Cairn being the first due to hit TD later this month.
Carin with a 50% WI announced on 28 October that the FD-I exploration well is in the Foum Draa block was underway and is the first in a planned multi-well exploration programme in Moroccan waters.
Eve Howell the Tangiers Executive Chair, now has the options cash is in the bank and needs to deliver shareholder value. To find out a bit more I have mailed offering participation in an investor Q&A. If Tangiers are interested I will put a notice on this thread and invite questions.
What is the thinking on this morning's suspension news pending a potential corporate deal?
Not sure, if I was to hazard a guess based on company updates and getting the recent options underwritten to cash up I would reckon a new asset or JV tie up with Tanzania being touted on the rumour mill. Once the ministry signs off some forms in Morocco they should have around $20m in the kitty following the recent options take up and are carried by Galp in Morocco. Might be something more substantial such as TO or merger with another junior player as pure speculation on my part. Eve Howell the Exec Chair came with a big reputation, but to date has presided over a big slump in the SP, which did not help by the options on the table to be exercised October this year (now done). For me as a shareholder I feel they have had their time, talked about adding new assets on stringent criteria to them, got plenty of cash and now need to deliver something substantial to sit alongside the Morocco play. I guess all will be reviled in a few days, just hope it was worth meriting the halt here and on AEX.
Morocco could soon be heating up with Cairn's drilling programme targeting 4.0bn (boe) commencing imminently, also worth noting BP recently farming into Morocco prospects.
IC - The road to MoroccoThe other intriguing news of late is that BP has made a major commitment to deep-water exploration plays off the coast of Morocco. The group has made a firm commitment to US driller Kosmos to provide funding for wells in three blocks it has farmed into: BP has taken a 45 per cent stake in the Essaouira and Tarhazoute licence blocks, and a 26.3 per cent share in the highly prospective Foum Assaka licence. BP will cover all of Kosmos' share of drilling costs in each of the prospects, and it has also agreed to spring for some of Kosmos' share on any follow-up wells, in addition to covering a pro rata share of past costs connected to the licences.The fact that BP has given a tacit seal of approval provides a positive beat for those oil & gas already committed to the region, particularly as the prospects are pretty much 'blue-sky' at this stage. It was certainly welcome news for one of our preferred junior plays in the sector - Fastnet Oil & Gas (FAST) - a third party in the Foum Assaka licence, which is also pursuing its own farm-out process to bring in a funding partner. The industry view is that the BP move effectively derisks the region - only time will tell. Eyes now will be on upcoming drill work by Cairn Energy (CNE) and Genel Energy (GENL), both of which the IC has on a buy. Hopes are high: success at the early stage high impact wells could help to establish Morocco as a major new oil frontier and the majors - as they have in Kurdistan - will descend en masse. This time, however, BP may have stolen a march on its rivals. Source: http://www.investorschronicle.co.uk/2013/10/23/comment/chronic-investor-blog/the-trials-of-british-petroleum-6q4ZYVuMi8uKes6aBpGFxI/article.html
An interesting development regarding Tangiers has been the recent announcement that a number of third parties have suggested terms through Macquarie for which they would be looking to enter into a farmout agreement covering the Morocco project. Tangiers stance on the third party offers to date is, not as they stand, let’s negotiate!
Macquarie Capital Europe Ltd in the UK and ISIS Petroleum Consultants in Australia are assisting TPET it in farming out its projects in Morocco and Australia. The Company stated on the 26 September:
http://clients2.weblink.com.au/clients/tangierspetroleum/article.asp?asx=TPT&view=6605603