Tangiers Petroleum: Shore highlights the potential of explorer’s assets

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Tangiers Petroleum
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Tangiers is an AIM (LON:TPET) and ASX (ASX:TPT) listed exploration company which has a portfolio of two potentially world class oil and gas assets located in Morocco and Australia.Tangiers Moroccan assets include the highly prospective Tarfaya offshore block.In Australia, assets include the significant Nova and Super Nova gas prospects located offshore Northern Australia.

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3:57 pm by Ian LyallTangiers recently completed its latest seismic campaign on the Tarfaya block, offshore Morocco

City firm Shore Capital today initiated coverage on Tangiers Petroleum (LON:TPET, ASX:TPT), highlighting the potential of its assets.

Shore, which is joint broker to the group, didn’t provide a price target for the stock. However, analyst Craig Howie estimates the risked net asset value to be 126 pence a share. At 3.30pm, Tangiers was changing hands for 33 pence a share.Ahead of its listing on AIM last month the explorer raised US$6.35 million via a private placing, which leaves it well funded to pursue its near-term goals. It owns potentially company-making assets in Morocco and Australia, where it also has a stock market listing. It is hoping to negotiate farm-in deals on both. Tangiers recently completed its latest seismic campaign on the Tarfaya block, offshore Morocco. The group holds a 75 per cent stake in the block, which has an un-risked prospective resource of 867 million barrels, with a high-end estimate of almost 5 billion.In Australia, meanwhile, it owns 90 per cent of two potentially mega gas prospects in Australia’s Southern Bonaparte Sea, some 250 kilometres south-west of Darwin. They are Nova and Super Nova and are sitting below already existing oil fields.Based on work carried out by independent consultants Schumberger, Tangiers cites what it calls a “probabilistic estimate” of un-risked gas in place of 71 trillion cubic feet to 148 Tcf – which makes the pair potentially huge on anyone’s register. “Tangiers is trading at a significant discount to our risked net asset value estimate of 126 pence a share, so we think that a tailwind of positive news flow could provide renewed share price momentum,” said Howie in a note to clients. “Following the recent placing, a stable funding position mitigates concerns about potential dilution, to our minds, while the large number of prospects diversifies exploration risk and provides option value.”