Shares in Tangiers Petroleum (ASX:TPT, LON:TPET) surged more...

Shares in Tangiers Petroleum (ASX:TPT, LON:TPET) surged more than 50% to 0.91p in the UK after an independent resource report underlined the huge unconventional oil potential of its Project Icewine acreage on Alaska’s North Slope.

The area is host to the massive Prudhoe Bay discovery; however, Tangiers and its partner Burgundy Xploration, led by Eagle Ford pioneer Paul Basinski, believe there is huge untapped potential.

An independent report by DeGolyer and MacNaughton appears to concur. It estimates Tangiers North Slope acreage is potentially host to 8 billion gross, mean, unrisked barrels of oil.

The estimated recoverable oil is put at 492 million barrels, while the chance of success is seen as 41%.

All of this overlooks the conventional oil target that will tested by near neighbour Great Bear with three wells in the coming months and will be the focus of a separate report later this year.

Subject to funding, Tangiers also plans its own three wells testing conventional and unconventional targets on the North Slope.

Tangiers holds 87.5% of 99,360 acres right at the sweet spot of what could become one of the new, emerging plays in the US.

Tangiers managing director Dave Wall said: "The independent report by DeGolyer and MacNaughton has resulted in net mean recoverable unconventional potential for Tangiers of 431 million barrels of oil.

“Tangiers believe this indicates substantial upside potential if the entire project area is productive and/or mean recovery factor is ultimately higher than that currently estimated.

“The validation of the exceptional resource concentration is particularly significant as this is a first order driver of well performance in successful liquids-rich shale plays like the Eagle Ford and Bakken.

“The company anticipates being able to provide guidance on the conventional oil potential at the project later in the year and looks forward to insights from the imminent drilling programme by Great Bear immediately to the north of our acreage."

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