Tangiers wins bid for significant interest in US Oil and Gas Project

Tangiers wins bid for significant interest in US Oil and Gas Project

Tangiers Petroleum Limited (“Tangiers” or the “Company”) announced that it has entered into Binding Agreements to acquire a significant working interest in a large acreage position on a multiple objective, liquids-rich exploration opportunity in onshore North America known as Project Icewine (the “Project”).

Summary:

     Successful bid for large acreage position onshore Alaska in prolific liquids-rich area
     Significant working interest in strategic asset with world class potential
     Excellent fiscal terms, with cash rebate of up to 85% of exploration expenditure
     Experienced U.S. partner to work with Tangiers “on the ground”
     Long primary term leases (10 years), Operatorship and high working interest (87.5%)provide maximum financial flexibility to Tangiers

PROJECT ICEWINE HIGHLIGHTS
 High working interest (87.5%) in strategic asset with a world class prize

 Up to 86,940 net acres of a gross 99,360 acre (400 km2) opportunity

 Near ground-floor entry with average price per acre of ~US$30

 10 year primary term with no mandatory relinquishment

 Low 16.5% royalty (materially lower than most U.S. opportunities)

 Large acreage position and Operatorship provide flexibility for possible farm-down

 The primary objective is an untested, unconventional liquids-rich shale play in the prolific shale complex that sourced the largest oil field in North America

 The shallower conventional opportunity is a high-porosity, deepwater sand complex that is the hottest play on the North Slope and locally highlighted by three undeveloped discoveries on adjacent acreage

 Organically generated by the principal of BEX (and an AEM founding partner) that spearheaded ConocoPhillips’ 2005-2008 Industry entry into the sweetspot of the Eagle Ford Shale play, South Texas, US

 Internal analysis indicates the North Slope acreage is similarly located in a high-liquids,vapour phase shale sweetspot with Tier One in-place resource, maximizing the potential for compelling delivery rates and recoverable volumes

 Advantageously situated adjacent to the Dalton Haul Road and TransAlaska Pipeline (TAPS), resulting in all year round access for operations and immediate market access

 Up to 85% of exploration expenditure in 2015 is cash-refundable by the State of Alaska through the Alternative Credit for Exploration and Carried Forward Loss Credit

 Alaska is currently the only US State approved for oil export, giving Tangiers exposure to international oil pricing

 Full independent technical report underway

Tangiers’ 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.”

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Source: tangierspetroleum.com

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