Tangiers Petroleum: From Morocco to Alaska for its next high-impact projectIt may be time Tangiers Petroleum (LON:TPET) changed its name. For its next
major project it is swapping the warm waters off Morocco for the frozen wastes
of America's most northerly state.
An update this morning reveals it has made a successful bid for almost 87,000
net acres in the Alaska North Slope area-wide sale.
It will be partnered on Project Icewine with Burgundy Xploration, which was the
bid agent for the property, and will be carried on the first US$2mln spent on the
A 20% deposit totalling US$520,000 has been paid to the Department of
Natural Resources Alaska, with the balance of around US$3mln, including first
year rental costs, due in the second quarter of next year.
Next year's budget is put at US$2.1mln, which comprises the purchase,
reprocessing and re-interpretation of existing 2D seismic as well as planning
activities and overheads. The target is a liquid-rich shale play.
Having an 87.5% interest in the property gives Tangiers significant wiggle room
to bring in a partner later in the exploration process.
The change of focus follows the failure of the high-impact TAO well, offshore
Morocco, to find oil or gas.
Managing director Dave Wall said: "Project Icewine is the first step towards
rebuilding the company.
"Icewine ticks three of our key boxes for a start-up project: funding flexibility,
ground floor entry and huge upside potential.
"In addition, the project is located in a prolific oil producing region, with good infrastructure and significant nearby activity by major industry players.
"The board is looking forward to working with our US partners in order to unlock the substantial value we believe
resides within the project."