3rd Apr 2012 07:00
3 April 2012 TANGIERS PETROLEUM LIMITED MILLIGANS FORMATION OIL PLAY Highlights * Competent Persons Report completed on Tangiers' Milligans Fan oil play in the Bonaparte Basin Permit Areas WA-442-P and NT/P81 by ISIS Petroleum Consultants. * Significant oil potential confirmed in 14 identified leads, 8 of which are structural traps with 6 being a combination structural/stratigraphic in nature. * The Milligans Formation has been intersected in previous offshore wells which confirmed the presence of an active petroleum system including oil recovery in Turtle-2 and oil and gas recovery in Barnett-2. * Portfolio contains a combined gross mean unrisked undiscovered oil in place (STOIIP) of 683 million barrels of oil with a high case of 1,489 million barrels of oil in place. * Gross mean unrisked Prospective Resources are estimated to be 218 million barrels of oil with the high side case of 505 million barrels of oil.
Tangiers Petroleum Limited (the Company) is pleased to announce that it has received a Competent Persons Report ("CPR") prepared by ISIS Petroleum Consultants ("ISIS") for the Milligans Fan oil play in its WA-442-P and NT/P81 permit areas. These permits are located within the shallow offshore Bonaparte Basin in Northern Australia with water depths ranging up to 60 metres.
The CPR includes an assessment of the mean unrisked prospective resourcesindividually contained within 14 identified leads, with crests ranging in depthfrom 2374 metres to 4450 metres. ISIS estimates mean unrisked undiscovered oilin place to be 683 million barrels of oil with a mean prospective resource of218 million barrels of oil. The arithmetic prospective resource range is asfollows: Gross Net Attributable to Tangiers (90%)All figures in Low Best High Low Best Highmillion barrels (P90) (P50) (P10) Mean (P90) (P50) (P10) MeanUndiscovered 118 425 1,489 683 106 383 1,340 615Oil Initially-In-PlaceProspective 35 139 505 218 32 125 455 196Resources
Tangiers is the operator of the permits
[Source: ISIS Petroleum Consultants]
The Turtle and Barnett discoveries were made in 1984/85 and were later appraised in 1989/90. Oil and Gas was found at multiple stratigraphic levels ranging from the relatively shallow Late Carboniferous/Early Permian Keyling and Treachery Formations to the Early Carboniferous Milligans Formation. The Turtle and Barnett oil discoveries occur in sandstone reservoirs. These discoveries demonstrated that multiple stacked sand units exist throughout the Milligans Formation. Top seals are formed by both regional and intraformational shales.
The Milligans Formation is the lowest unit of the Early to Mid-Carboniferous Weaber Group. This formation has been intersected in several offshore wells in the southern Bonaparte gulf and the presence of an active petroleum system has been effectively proven. In WA-442-P, 34.5° API oil was recovered on DST from the Milligans in Turtle-2. In NT/P81 a DST of a Milligans Formation sand in Barnett-2 flowed gas to surface and produced 44.4° API oil.
Play types within the Milligans Formation are illustrated in Figure 1. Multiple play types have been recognized including:
1. Dip-closed structural traps in the Milligans Formation;
2. Onlap traps on the flanks of the Turtle High, where over 1,000m of
Milligans Formation progressively onlaps from SW to NE; and
3. Stratigraphic traps in detached basin floor fans in the depocentre and
detached slope fans on the lower basin flanks.
Further details, including stratigraphic and seismic diagrams of the plays, are set out in the fully formatted version of this announcement and the full competent persons report, which are both available on Tangiers' website at www.tangierspetroleum.com.
Mark Ceglinski, Chairman of Tangiers Petroleum, commented, "The Milligans Fan oil play significantly adds to Tangiers Australian exploration portfolio within the company's Bonaparte Basin blocks. The ISIS CPR further confirms the excellent prospectivity of the region and Tangiers is looking forward to the further evaluation of the Bonaparte Basin Block which includes the Nova and Super Nova deep gas prospects, the Turtle and Barnett oil discoveries, and Messner lead."
Qualified Person
The information in this announcement was produced by Mrs Margaret Hildick-Pytte who is the Director of Exploration for Tangiers and Mr Brent Villemarette who is an Executive Director of Tangiers. Mrs Hildick-Pytte holds a BSc and MSc in Geology and is undertaking a MSc in Petroleum Engineering. She is a member of SPE, AAPG, the SPWLA and PESA. Mr Villemarette is a petroleum engineer with over 30 years of experience and is a member of the Society of Petroleum Engineers. Mrs Hildcik-Pytte and Mr Villemarette have reviewed this announcement and consent to its release. Terminology and standards adopted by the Society of Petroleum Engineers ("SPE") "Petroleum Resources Management System" have been applied in producing this document.
Under these standards:
"Undiscovered Oil Initially in Place" is that quantity of oil which is estimated, on a given date, to be contained in accumulations yet to be discovered. The estimated potentially recoverable portion of Undiscovered Oil Initially in Place is classified as Prospective Resources, as defined below; and
"Prospective Resources" are those quantities of oil or gas which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.
Tangiers Petroleum Limited14 Emerald TerraceWest Perth, WA, 6005Ph: +61 (8) 9322 2700Fax: +61 (8) 9322 7211www.tangierspetroleum.comContactsMr Mark CeglinskiChairman+61 8 9263 5205RFC Corporate Finance Limited (Nominated Adviser)Mr Stuart Laing+61 8 9480 2506Old Park Lane Capital PLC (Joint AIM Broker)Mr Michael ParnesMr Luca Tenuta+ 44 20 7493 8188Shore Capital Stockbrokers Ltd (Joint AIM Broker)Mr Jerry KeenMr Bidhi Bhoma+ 44 20 7408 4090Casimir Capital (Principal American Liaison)Mr Stephen Silver+1 212 798 1372
Mr Paul Youens / Mr Ed Portman (Media and Investor Relations - United Kingdom) Tavistock Communications +44 20 7920 3150
Mr Bill Kemmery Fortbridge Consulting +61 400 122 449
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