Tangiers Petroleum announced Wednesday that it has executed a farm-out agreement with CWH Resources and Ansbachall for two of its Australian exploration permits. The farm-out agreement covers the WA-442-P and NT/P81 permits, which are located in the southern Bonaparte Basin approximately 155 miles southwest of Darwin.
Under the farm-out agreement CWH will fund all costs and expenses associated with seismic data acquisition work, drill planning and exploration drilling within the permit areas up to a cap of $34 million (AUD 35 million). Once the cap is exceeded, Tangiers will be required to pay 27 percent of the ongoing costs of exploration and operations in line with its remaining interest in the permits.
CWH now has a 70-percent interest in the permits, while Ansbachall holds a three-percent interest.
Tangiers said that the execution of the farm-out agreement marks "another key milestone" in its strategy to build an international oil and gas company. The firm intends to either reduce or eliminate altogether its near-term spending commitments on its existing assets, while seeking opportunities to acquire interests in African petroleum assets.
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