For its next major project, Tangiers Petroleum is swapping the warm waters off Morocco for the frozen wastes of USA’s most northerly state. The company 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$2 million spent on the property.
A 20% deposit totalling US$520 000 has been paid to the Department of Natural Resources Alaska, with the balance of around US$3 million, including first year rental costs, due in the second quarter of next year.
Investing in a liquid-rich shale play
Next year’s budget is put at US$2.1 million, 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.
Rebuilding the company
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."
Adapted from press release by Cecilia Rehn
Read the article online at: https://www.oilfieldtechnology.com/exploration/03122014/tangiers-petroleum-begins-oil-and-gas-exploration-project-in-alaska-north-slope/