TANGIERS PETROLEUM LIMITED: Quarterly Report December 2013

17 January 2014 
                      TANGIERS PETROLEUM LIMITED                            
       Quarterly Report for Period Ending 31 December 2013 
The Directors of Tangiers Petroleum Limited ("Tangiers" or the "Company") are
pleased to provide the following report on its activities during the quarter
ended December 2013. A copy of the full quarterly report, including the
diagrams referred to in the text and the Appendix 5B (Quarterly Cash Flow
Report), is available on the Company's website at www.tangierspetroleum.com 
The Company launched a recommended off-market takeover bid for Jacka Resources
Limited ("Jacka"), an ASX listed, Africa focused oil and gas company with
interests in Tunisia, Nigeria, Tanzania and Somaliland. 
Notification of the signature of the Joint Moroccan Ministerial Order approving
the assignment of the 50% interest in the Tarfaya Offshore Block and
operatorship to Galp Energia was received. 
Planning of the initial Tarfaya Offshore Block exploration well, TAO-1,
The Company terminated the farm-out agreement with CWH Resources Ltd ("CWH") in
relation to the Bonaparte acreage in Australia as CWH was unable to meet the
conditions precedent. As a consequence, the request for a further extension of
time from the National Offshore Petroleum Titles Administrator (NOPTA) was
refused and 30 days' notice was given to commence the process to cancel the
permits. The notice period was to expire on 12 January 2014. 
The Company was advised in December by NOPTA that the NT/P83 exploration permit
in the Arafura Sea had been cancelled 


The key operational activities during the quarter were:

  * the site survey over the proposed TAO-1 location was completed;
      * Galp Energia continued to advance environmental approval and well planning
    for TAO-1;
      * Galp Energia began screening the market for potential rig sharing/sublet
    options and preparing the invitation to tender documents for the drilling
    The key corporate activities for the quarter were:

  * launch of a recommended off-market, takeover offer for Jacka Resources
    Limited for which the Bidder's Statement is due for lodgement with ASIC and
    on the ASX announcement platform on 20 January 2014;
      * completion of the underwriting of the A$0.16 listed options, securing
    funding of A$7.1 million before costs.
      * the completion of an investor relations road show from 24 September to 17
    October with presentations taking place in Perth, Sydney, Melbourne, Hong
    Kong and London.

The ASX Appendix 5B attached to this report contains the Company's cash flow
statement for the quarter. The significant elements for the period were:

  * exploration and evaluation expenditure of A$0.272 million (September 2013
    A$0.065 million);
      * administration and other operating costs of A$1.214 million (September 2013
    A$0.846 million);
      * the exercise of 39,656,922 listed options at A$0.16, netting the company
    A$5.974 million; and
      * a net cash inflow of A$4.508 million recorded by the company.

At the end of the quarter, the Company had net cash reserves of A$6.089 million
excluding the US$3 million bank guarantee in Morocco. 
The Moroccan Joint Ministerial Order has been received approving the assignment
and transfer of operatorship of the Tarfaya Offshore Block to Galp Energia, so
cash reserves will shortly be augmented by US$7.5 million of back costs and
return of the US$3 million bank guarantee. 
                             New Ventures                                   
If the Jacka takeover bid is successful, the merged entity will possess a
portfolio of highly prospective exploration, appraisal and development acreage
in Morocco, Tunisia, Nigeria, Somaliland and Tanzania. 
The Company continues to review and evaluate selected new venture opportunities
in offshore shallow water and onshore in various African countries. 
                Tarfaya Offshore Block - Morocco (25%)                      
The Tarfaya Offshore Block (Figure 2), Morocco comprises eight contiguous
permits covering an area of 11,281 sq km. The Tarfaya Block is situated
approximately 600 km southwest of Morocco's capital, Rabat, inboard of the
Canary Islands on the Atlantic Margin. The Block contains multiple prospects
and leads within Jurassic sediments as well as potential within the Tertiary,
Cretaceous and Triassic Formations. 
During the quarter, environmental studies were advanced, the TAO-1 well site
survey was completed and detailed planning for the well continued. 
Galp Energia was assigned its 50% interest in the Block and became operator.
Tangiers retains a 25% interest in the Tarfaya Offshore Block. 
The Assaka 3D seismic data covers the Trident, Assaka and TMA prospects,
certified by Netherland, Sewell & Associates, Inc (NSAI). The La Dam prospect
in the south of the Tarfaya Block is covered by a 580 sq km 3D seismic survey
acquired in 2006 and reprocessed in 2011 by the Company. The combined total
best estimate net (25% basis) prospective resource for the four Jurassic
prospects in the Tarfaya block is 217 million barrels. 

           WA-442-P (Turtle) and NT/P81 (Barnett) (90% and Operator)           

These two contiguous exploration permits encompass 3,900 sq km and are located
approximately 20 km offshore in the Commonwealth waters off the coasts of
Western Australia and Northern Territory, approximately 320 km southwest of

In October the Company terminated the Farm-Out Agreement with CWH Resources Ltd
as the conditions precedent were not satisfied. A further extension of time was
requested from NOPTA to allow the Company to seek another farminee. The
extension was not granted and notification was received from NOPTA that the
permits may be cancelled.

  NT/P83 Exploration Permit, Offshore Darwin, Arafura Sea (100% and Operator)  

The Company received notification that this permit was cancelled in December

Hydrocarbons in Place Summary

Detailed below are the estimated oil estimates for the Company's project
                  Gross (100%)        Tangiers        Net Attributable

Project        Low    Best/    High                  Low    Best/   High    
                  Mean                                  Mean
Oil-in-Place Estimates (unrisked) (All figures in millions of barrels) 
Morocco        1,564  4,335   12,399     25%          391   1,084   3,100   
Galp Energia 
Total          1,564  4,335   12,399                  391   1,084   3,100
Prospective Resources Summary 
Detailed below are the estimated Prospective Resources delineated across the
Company's project interest. 
              Gross (100%)        Tangiers         Net Attributable       
Project        Low    Best/   High                    Low    Best/    High       
                  Mean                                   Mean
Prospective Oil Resources (unrisked) (All figures in millions of barrels) 
Morocco         156    867   4,959       25%           39      217    1,240  
unrisked   Galp Energia 
Total           156    867   4,959                     39      217    1,240
                           Qualified Person                                 
The information in this announcement was produced by Mr Brent Villemarette who
is an Executive Director of Tangiers. Mr Villemarette is a petroleum engineer
with over 30 years of experience and is a member of the Society of Petroleum
Engineers. Mr Villemarette has reviewed this announcement and consents to its
Terminology and standards adopted by the Society of Petroleum Engineers ("SPE")
"Petroleum Resources Management System" have been applied in producing this
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;
"Prospective Resources" are those quantities of oil or gas which are estimated,
on a given date, to be potentially recoverable from undiscovered accumulations. 
Joint Company Secretary 
Tangiers Petroleum Limited
Level 2, 5 Ord Street
West Perth WA 6005, Australia
Ph: + 61 8 9485 0990 
RFC Ambrian Limited (Nominated Adviser)
Mr Stuart Laing
+61 8 9480 2506 
Peel Hunt LLP (Joint AIM Broker)
Mr Richard Crichton
Mr Andy Crossley
+ 44 20 7418 8900 
Mr Ed Portman (Media and Investor Relations - United Kingdom)
Tavistock Communications
+44 20 7920 3150 
Press spacebar to pause and continue. Press esc to stop.