For its next major project, Tangiers Petroleum is swapping the warm waters off Morocco for the frozen wastes of USAÂ鶹´«Ã½Ó³»™s most northerly state. The company has made a successful bid for almost 87 000 net acres in the Alaska North Slope area-wide sale.
Project Icewine
It will be partnered on Project Icewine with Burgundy Xploration, which was the bid agent for the property, and will be carried on the first US$2 million spent on the property.
A 20% deposit totalling US$520 000 has been paid to the Department of Natural Resources Alaska, with the balance of around US$3 million, including first year rental costs, due in the second quarter of next year.
Investing in a liquid-rich shale play
Next yearÂ鶹´«Ã½Ó³»™s budget is put at US$2.1 million, which comprises the purchase, reprocessing and re-interpretation of existing 2D seismic as well as planning activities and overheads. The target is a liquid-rich shale play.
Having an 87.5% interest in the property gives Tangiers significant wiggle room to bring in a partner later in the exploration process.
Rebuilding the company
The change of focus follows the failure of the high-impact TAO well, offshore Morocco, to find oil or gas.
Managing Director Dave Wall said: "Project Icewine is the first step towards rebuilding the company.
Â鶹´«Ã½Ó³»œIcewine ticks three of our key boxes for a start-up project: funding flexibility, ground floor entry and huge upside potential.
Â鶹´«Ã½Ó³»œIn addition, the project is located in a prolific oil producing region, with good infrastructure and significant nearby activity by major industry players.
Â鶹´«Ã½Ó³»œThe board is looking forward to working with our US partners in order to unlock the substantial value we believe resides within the project."
Adapted from press release by