Tangiers Petroleum reveals $1.7million net cash at the end of Q2

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The Directors of Tangiers Petroleum Limited (“Company”) are pleased to provide the Tangiers Petroleum reveals $1.7million net cash at the end of Q2report on its activities during the quarter ended 30 June 2013. The Company had a A$1.7million net cash reserves excluding the US$3 million bank guarantee in Morocco at the end of the quarter. The cash reserves will be augmented by US $ 7.5 million of back costs and return of the US$3 million bank guarantee to satisfy the remaining conditions precedent for the Galp farm-out agreement which relate to approvals from the Moroccan government. The significant elements that contributed to the amount were exploration and evaluation expenditure reduced to A$0.168 million with which A$0.202 million in Mar 2013 and administration and other operating costs of A$0.843 million with A$0.759 million in Mar 2013.
The Company’s ongoing strategy is geared towards creating a diversified and balanced portfolio by reviewing and acquiring new venture opportunities in Africa. During the last quarter, the company has evaluated in various African countries for the selected New Venture opportunities. The focus continues to be on farm-in opportunities both onshore and in shallow offshore waters in a number of prospective basins including potential corporate deals.
In May 21, 2013, the Farmout Agreement for Australian permits WA-442-P and NT/P81 between the Company and CWH Resources Ltd. During the quarter, the Company has focused its efforts on expanding its position in Africa with multiple opportunities presently being evaluated.
The key operational activities during the quarter included planning for the first exploration well in Morocco which is progressing with the draft basis of well design (BoWD) for the proposed exploration well (TAO-1) completed; preparation for the WA-442-P and NT/P81 3D seismic survey which is ongoing with shortlisting of potential appropriate vessels and work also continued on the Environmental Impact Plan.
The key corporate activities were the Farm-out process with Galp Energia which is on target to close out the remaining conditions precedent in the third quarter of this year and finalising a binding farmout agreement with CWH Resources which has them farming-into and becoming operator of the WA-442-P and NT/P81 permits; and the appointment of two new brokers.