Tangiers Share Discussion Threads

[kirk 6] 20/11/2014 07:07

Some fantastic news out. Whooooops travis

[travls] 19/11/2014 16:34

The definitive list of AIM companies about to go bust:

Tangiers (skint)
IRG (skint)
Tower (skint)
Sefton (crooks and skint)
KEA (skint)
NEW (shower of crooks and skint)
Range (skint)
London Mining (went bust on 16th Oct)
Ultrasis (set to delist very soon)
UKOG (skint and drilled a recent duster)
JLP (skint)

[bad robot] 12/11/2014 15:58

Induana

I hope one day you get your 10p average here.

[induna123] 12/11/2014 14:47

“So we said we would transfer out our interest in the license to them and then if our market cap gets to US$50 million in the next seven years then will pay back the money.”

LOL You can't make this stuff up.

[kirk 6] 12/11/2014 14:19

could do some extreme gains from such a very low mkp though. 1.8m lol

[tycoon ted] 12/11/2014 13:13

Can someone send them a bloody calculator lol

[kirk 6] 11/11/2014 21:42

Where on earth did you get that positive article from? Actually wants me to reinvest in Tpet again!

[dalcon01] 11/11/2014 16:38

Everythings OK then ? lol



Tangiers targets new high value assets with the success of its recent new funding initiative. The company now has its destiny in its own hands.

Tangiers Petroleum’s goal remains the building of a successful exploration and production company, targeting overlooked or emerging play types. The Company is now in a rebuilding phase, having announced a planned exit from its Moroccan TAO-1 oil well play, made possible by recently acquired new funding.

Management at Tangiers Petroleum (ASX: TPT) admit it has been a rough ride for shareholders following the failure of its key Moroccan asset but MR. David Wall clearly explained the factors effecting the lack of success and highlighted they were beyond the company’s control due to the structure and involvement of other parties in the process. Importantly this structural problem will not be encountered again. Belief in the Company and its management team has meant that new funds have been raised and Tangiers is ready to move forward again.

The Company’s TAO-1 well was declared unsuccessful on the 4th August, having failed to encounter a quality reservoir or significant hydrocarbon but the final cost of the well also exceeded the Company’s internal budget.

“This was largely due to factors not associated directly with the drilling, which was completed safely and efficiently. Unfortunately, several of the costs were not fully quantified until after the well had reached total depth,” Tangiers Petroleum managing director, David Wall told The Australian Investor.

Following an internal strategic and technical review, the new board at Tangiers elected to exit its 25 per cent interest in the TAO-1 well and enter into a Deed of Settlement and Release with operator Galp Energia Tarfaya (Galp).

Following a brief suspension from trading, Tangiers was re-instated after reaching an agreement with Galp to pay $3.4m, in stock or cash, if the market capitalisation of Tangiers exceeds US$50m within seven years of the agreement.

After a final financial post-mortem, Tangiers revealed it spent A$12.64 million on exploration and evaluation in the three months to September 30.

An additional A$1.4 million was spent on operating costs, and the company was left with A$1.26mln at the end of the period, a figure well below company expectations.

“The well was drilled on time but not on budget, unfortunately ,” he said.

“If we had known the well was trending over budget we would’ve tried to raise some more money, but our only reference for tracking cost was the schedule and on that basis we thought we were OK.

“After the well had hit total depth, it became clear to us through some conversations with the operator that the costs were trending higher.

“The costs went higher than we imagined possible and we had to negotiate a settlement, which effectively meant that we owed Galp US $3.4 million, an amount we couldn’t pay.

“So we said we would transfer out our interest in the license to them and then if our market cap gets to US$50 million in the next seven years then will pay back the money – if we hadn’t taken that step, the company would’ve gone into administration.̶1;

Tangiers has now finalised its financial obligations with Galp at a total of US$18.56 million, funded by the Company’s cash position and leaving Tangiers with a cash balance of approximately A$1.25m.

“We had hoped if the well wasn’t successful that we would have at least $5 million in the bank as a starting point, but really we ended up with about one million.”

“I think shareholders recognise the new board including myself haven’t really had too many options available to us.

“The cost of the well was out of control as it was operated by Galp. That was a decision made before we came on board and there was nothing we could do about it.”

Having put the failed asset behind them, management is now positioning the Company to take advantage of several new oil and gas investment opportunities and has recently raised A$1.2mln to bolster working capital and support the company as it assesses new ventures.

“We’ve raised another $1.2 million to enable us to evaluate a lot of new ventures opportunities that we have, a couple of which are at fairly advanced levels of negotiation.”

The Company has also slashed overheads of greater than A$2.5m per annum, including cuts to staff salaries and Director’s fees.

“The new board, Non-Executive Chairman, Michael Evans, myself and Non-Executive Director, Dr Stephen Staley, really joined the Company for this period of its lifecycle – the rebuilding,” Mr Wall said.

He says the board remain focused on growing Tangiers into a successful exploration and production Company that delivers material benefits to its shareholders.

“We are committed to taking an interest in some material projects and to grow a significant business.

“We said to investors [in the capital raising] that this is a cheap entry price to get set again for the next stage. We could have raised more and had some good demand [for the capital raising], so that was encouraging.”

The Company’s strategy remains to target overlooked or emerging play types where its small but experienced management team can move quickly to capitalise on opportunities prior to larger players moving in.

“The opportunities we’re looking at are ones that can add significant value. We are not going to go and spend $2 or $3 million buying an asset that is going to produce 10 or 20 barrels a day and say look we are a production company.

“We want to look at things that have hundreds of millions of barrels of oil or a TCF or more of gas as a potential resource,” he said.

Details of on-going discussions remain confidential but management is hopeful of closing a binding agreement on at least one new deal before the end of the year.

“We’re not targeting short-term cash flow, we’re targeting short-term value creation,” he said.

“The past is the past and it was less than ideal. We own up to that and I believe a lot of people understand the reasons why things went out of our control. However, we now have control over the future of the business.”

Tangiers Petroleum now has its destiny in its own hands.

[travls] 05/11/2014 10:19

The definitive list of AIM companies about to go bust:

Tangiers (skint)
IRG (skint)
Tower (skint)
Sefton (crooks and skint)
KEA (skint)
NEW (shower of crooks and skint)
Range (skint)
London Mining (went bust on 16th Oct)
Ultrasis (set to delist very soon)
UKOG (skint and drilled a recent duster)
JLP (skint)

[malcolmmm] 31/10/2014 08:13

Well everyone knew that there was only a 20% chance of success in the first place

[pro_s2009] 31/10/2014 01:56

In true TPET fashion, another pump and dump cycle...........

[travls] 30/10/2014 19:34

The definitive list of AIM companies about to go bust:

Tangiers (skint)
IRG (skint)
Tower (skint)
Sefton (crooks and skint)
KEA (skint)
NEW (shower of crooks and skint)
Range (skint)
London Mining (went bust on 16th Oct)
Ultrasis (set to delist very soon)

JLP added to list 16/10/2014

[mike111d] 30/10/2014 19:07

Hopefully those who fell for buying in here earlier this week have at least learned a valuable lesson.

[travls] 30/10/2014 18:20

The definitive list of AIM companies about to go bust:

Tangiers (skint)
IRG (skint)
Tower (skint)
Sefton (crooks and skint)
KEA (skint)
NEW (shower of crooks and skint)
Range (skint)
London Mining (went bust on 16th Oct)
Ultrasis (set to delist very soon)

JLP added to list 16/10/2014