tpt to takeover jka at 11.2c per share, page-20

Info for new investors

Mon, 02 Dec 2013
Beaufort securities update

Tangiers Petroleum (TPET.L, 13.25p) – Speculative Buy

Tangiers Petroleum provided an update relating to the Tarfaya Block in Morocco.
The environmental approval is in progress and the public review would be concluded in the coming weeks. The survey vessel has been mobilised to offshore Morocco to start the site survey over the proposed Tao-1 well location. Galp Energia, which is farming in to the Tarfaya Block as the operator, is currently seeking potential rig sharing/sublet options. The Joint Order approval of the assignment to Galp Energia recorded further progress, with the signing of documents by the Minister of Energy, while the approvals and signature from the Ministry of Finance are expected shortly.

Beaufort Securities view:

Having secured the final approval from the Ministry of Energy, Tangier has reached an important milestone towards the farm-out of Tarfaya block. With the assent of the Ministry of Finance expected soon, the completion of the Joint Order would free up the company’s financial resources to tap new lucrative exploration opportunities in the African countries. Further preparation to begin the site survey over the proposed Tao-1 well location indicates the company’s ongoing progress on the operational front.

The potential materialisation of new attractive farm-in opportunities in a relatively underexplored African region presents a very good opportunity to add lucrative assets into the company’s resource base.

We retain a Speculative Buy on the stock.