Tangiers Petroleum unveils AIM listing plans

Friday, 6 January 2012 – Proactive Investors

ASX-quoted Tangiers Petroleum (ASX:TPT) this morning unveiled plans to list on AIM.

It said it expected the shares to be admitted to the London market on or around February 3. It isn't clear whether the group plans to raise funds.

RFC Corporate Finance will act as nominated adviser to Tangiers, while Shore Capital and Old Park Lane have been appointed joint brokers to the company.

The directors of the company have agreed a one-year lock period during which they won't sell shares, the company's AIM admission document reveals.

Tangiers owns the Tarfaya oil area off the coast of Morocco, which has an un-risked prospective resource of 867 million barrels, with a high-end estimate of almost 5 billion barrels.

Its other major interest is a potentially mega gas prospect in Australia's Southern Bonaparte Sea, some 250 kilometres south-west of Darwin.

Each has the potential to be a company maker. Morocco is one of the world's few under-explored oil nations, though give it five more years and the country will be inundated by the industry's great and good attracted by the very favourable fiscal regime.

Companies such as Tangiers enjoy a 10-year tax holiday on each and every discovery they make, while the royalty on oil is 10 per cent.

Tangiers owns 75 per cent of the Tarfaya Block, with the remainder held on a free carried basis by the Moroccan government. The company has eight permits covering a total 15,000 square kilometres.

An independent evaluation by Netherland, Sewell & Associates came up with the 867 million to 5 billion barrel recoverable resources resource estimated cited earlier.

In Australia, the company has discovered what it believes to be two huge gas finds Nova and Super Nova – sitting below already existing oil fields.

The oil bearing parts are the Turtle and Barnett structures that have the potential to be near-term cash generators for the company and are part of a wider area covered by exploration permits WA-422-P and NT/P81.

Based on work carried out by Schumberger, Tangiers cites what it calls a "probabilistic estimate" of un-risked gas in place of 71 trillion cubic feet to 148 Tcf.

The geology points to a major find, as does the "nearology". Nearby are the Petrel, Tern and Blacktip gas fields. The latter has a direct pipeline to shore, which cuts straight through Tangiers licence area.

Original article published on: http://www.proactiveinvestors.co.uk/companies/news/37531/tangiers-petroleum-unveils-aim-listing-plans--37531.html