Tangiers Petroleum executes farm-out agreement

Tangiers Petroleum's shares edged higher Wednesday after the oil and gas company said it executed its farm-out agreement with CWH Resources and Ansbachall.

The agreement covers Australian exploration permits WA-442-P and NT/P81 which are located in the southern Bonaparte Basin, about 250 kilometres south-west of Darwin.

Under the farm-out deal, CWH will fund all costs and expenses associated with seismic work, drill planning and exploration drilling within the permit areas up to a cap of AU$35m.

Tangiers will then pay 27% of the ongoing costs relating to exploration and operations.

It is subject to government approval.

"The execution of the farm-out agreement represents another key milestone in Tangiers' strategy to build an international oil and gas company with strong growth prospects," Tangiers said.

Shares increased 3.82% to 17p at 10:25.

RD