3D seismic data confirms Tarfaya potential

TANGIERS PETROLEUM LIMITED - 3D seismic data confirms Tarfaya potential

PR Newswire

London, February 4

4 February 2013

Tangiers Petroleum (ASX: TPT) is pleased to advise that a detailed 3D seismicprogram has highlighted the significant upside for the Company at its Tarfayaoffshore block in Morocco.

The seismic data, which Tangiers has just finished processing, confirms theTrident prospect and secondary objectives at Assaka and TMA potentiallycontain best estimate prospective resources of 750 million barrels ofrecoverable oil (100% basis) with a geological chance of success of 23 percent, according to Tangiers.

Under the farm-out agreement struck between Tangiers and Portuguese major GalpEnergia in December last year, Tangiers will retain a 25 per cent interest inthe Tarfaya offshore block.

Subject to approvals from the Moroccan Government for the transaction, Galpwill spend US$41 million, including reimbursing Tangiers US$7.5 million forcosts it has incurred. Galp will also fund an exploration well to targetTrident and secondary objectives Assaka and TMA. This is to be drilled beforemid-2014. The mean potential reserves for the Trident prospect and geologicalchance of success are in line with the estimate provided by Galp in theirfarm-in press release, last December. On completion of the farm-in approvals,the Tarfaya block will be 50 per cent held by Galp as operator, with DVM(Tangiers) and ONHYM each holding 25 per cent.

Tarfaya Offshore Block

The Tarfaya offshore block is located in an area where a hydrocarbon systemassociated with Jurassic carbonates has already been proven by the Cap Jubydiscovery in the 1960s.

This fairway is rapidly gaining recognition for its potential to hostworld-class oil discoveries and several independent petroleum companies haverecently acquired significant interests in the region, including the LondonStock Exchange-listed Cairn Energy and Genel Energy.

Cairn and Genel are partners in the Cap Juby oil discovery to the west ofTarfaya. Genel estimates that Cap Juby has the potential to deliver 250million barrels. Genel has stated that an appraisal/exploration well isplanned for 2014 as part of the plan to realise Cap Juby's potential.

Genel also has 60 per cent of another nearby block in the region known as SidiMoussa, where it is targeting a resource of more than 850 million barrels ofoil equivalent. The first exploration well is scheduled for the first half ofnext year. In addition to this, Genel has a 75 per cent stake in the adjacentMir Left block, another Jurassic Carbonate play. The first well there isplanned for 2014.

As well as its stake in Cap Juby, Cairn has a 50 per cent interest in the FoumDraa Blocks in the area.

Based on published work programs, up to four exploration wells are expected totarget the Jurassic Carbonate fairway in this area over the next 12 to 18months.

3D Seismic Data

The seismic data comparison below shows one of the lines from the new 3Dseismic data set and one of the older (2004) 2D seismic lines from the samelocation. The new 3D data shows much better definition and continuity of theseismic horizon that defines the Trident structure.

With the better definition of the Trident structure provided by the 3D data,Tangiers has re-evaluated the geological chance of success of the well andupgraded it from the previously advised 14% (as independently assessed byNetherland, Sewell and Associates in 2011) to 23%.

"The growing interest shown in this area by several well-regarded companies,combined with our own assessments of the geology, highlights the substantialpotential of the Tarfaya block," Tangiers Executive Chairman Eve Howell said.

"The Trident prospect alone is a potential company-maker and wehave already identified several other Jurassic prospects in the block. WithGalp carrying the cost of the first well, Tangiers has a significant exposureto this upside while also being free to pursue our strategy of acquiring othergrowth assets in Africa".

Detailed below are the estimated Prospective Resources for theTarfaya Project. The attributable resources are for Tangiers' current 75%interest, i.e. before completion of the farm-in by Galp Energia.

A copy of the fully formatted version of the announcement,including the diagrams is available on the Company's website atwww.tangierspetroleum.com

The information in this announcement was produced by Mrs MargaretHildick-Pytte who is the Director of Exploration for Tangiers and Mr BrentVillemarette who is an Executive Director of Tangiers. Mrs Hildick-Pytte holdsa BSc and MSc in Geology and is undertaking an MSc in Petroleum Engineering.She is a member of SPE, AAPG, the SPWLA and PESA; and is a Fellow of theLondon Geological Society. Mr Villemarette is a petroleum engineer with over30 years of experience and is a member of the Society of Petroleum Engineers.Mrs Hildick-Pytte and Mr Villemarette have reviewed this announcement andconsent to its release.

Terminology and standards adopted by the Society of Petroleum Engineers("SPE") "Petroleum Resources Management System" have been applied in producingthis document.

Under these standards:

"Prospective Resources" are those quantities of oil or gas which areestimated, on a given date, to be potentially recoverable from undiscoveredaccumulations.

Mr Ed Portman (Media and Investor Relations - United Kingdom)Tavistock Communications+ 44 20 7920 3150