Tangiers Wins Exploration Permit Offshore Australia

Tangiers Petroleum Limited has received written confirmation from the National Offshore Petroleum Titles Administrator (NOPTA) that the Company had been successful in its work program bid and has been granted Petroleum Exploration Permit NT/P83 (NT/P83). It is anticipated that NOPTA will cause a notification of the grant to be published in the next edition of the Commonwealth Gazette.

NT/P83 (formerly Release Area NT P11-1) lies in the Arafura Sea to the north of Melville Island and the Coburg Peninsula of the  Northern Territory and is approximately 62 miles (100 kilometers) north of Darwin, Australia. It comprises and area of approximately 5,792 square miles (15,000 square kilometers) and is in waters shallower than 656 feet (200 meters).

A number of exploration wells have been drilled in the vicinity of the permit with gas discoveries to the west in the wells Caldita-1, Lynedoch-1 and ST-1, Lynedoch-2; and gas shows in the Beluga-1 well. Oil shows were encountered to the east of the permit in the Kulka-1 and Tasman-1 wells. The large Evans Shoals and Abadi gas fields are located to the west and northwest of the permit in the Malita Graben-Darwin shelf area.

The permit lies in the Money Shoals Basin, a relatively undeformed Jurassic to Cainozoic sequence that unconformably overlies the mainly Paleozoic rocks of the Arafura Basin. Part of the acreage extends into the Arafura Basin with folded and faulted Palaeozoic to lower Mesozoic rocks. The Golburn Graben is also present in a portion of the permit and is a dominant northwest to southeast Palaeozoic intra-cratonic rift basin. With several age units of source and reservoir rocks, this permit area is expected to be highly prospective for hydrocarbons.

The Company's proposed exploration program will initially focus on performing geotechnical studies and the acquisition of 500km of 2D seismic data.

Mark Ceglinski, Executive Chairman of Tangiers Petroleum, commented, "The grant of NT/P83 is a exciting step in furthering the Company's strategy to expand its exploration portfolio and leveraging the Company's technical expertise to identify potential leads and plays in areas believed to be highly prospective for hydrocarbons. NT/P83 is an excellent complement to the company's existing
Moroccan and Australian acreage."