Tangiers Petroleum's potential underlined by HB Markets; stock rated a speculative buy

Tuesday, 24 January 2012 – proactiveinvestors.co.uk (Web)

The current valuation of Tangiers Petroleum (ASX:TPT) could be a fraction of its true worth if indications from the company's independent competent person's report on the resources base turn out to be accurate.

This is the conclusion drawn by HB Markets, which initiated coverage of the Australian-listed oil and gas explorer with a speculative buy' recommendation ahead of its possible AIM listing next month.

Tangiers has two potentially company making assets – the Tarfaya oil block off the coast of Morocco – and highly prospective gas acreage off the coast of northern Australia.

Tarfaya has an un-risked prospective resource of 867 million barrels, with a high-end estimate of almost 5 billion.

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.

Based on work carried out by Schlumberger, Tangiers cites what it calls a "probabilistic estimate" of un-risked gas in place of 71 trillion cubic feet to 148 Tcf which makes the pair potentially huge on anyone's register.

"Tangiers Petroleum is in an early-stage of exploration and the risks that Tangiers does not find any commercially viable oil reserves are significant," said HB Markets analyst Donald Linderyd.

"However, if the indications from the CPR prove to be accurate, the current valuation of Tangiers Petroleum could be a fraction of its true value."

Original article published on: http://www.proactiveinvestors.co.uk/companies/news/38169/tangiers-petroleums-potential-underlined-by-hb-markets-stock-rated-a-speculative-buy-38169.html