Tangiers Petroleum (LON:TPET, ASX:TPT) says it has taken another step forward in its growth strategy as it sealed farm-outs for its Australian assets.
The company has now approved the final terms of the deal with CWH Resources Limited (ASX:CWH) and Ansbachall, giving the partners stakes of 70% and 3% respectively.
Tangiers Petroleum will now have a 27% interest in the two exploration permits in the Bonaparte basin, and CWH will pay all costs of seismic and drilling. This will be capped up to A$35mln, and thereafter the companies will cover costs on a pro-rata basis.
"The farm-out agreement is consistent with the company's stated plan to either reduce or eliminate altogether its near-term expenditure commitments on its existing assets while retaining significant exposure to their potential upside," Tangiers said in a statement.
The company also highlighted its intention to find new opportunities in Africa, in either onshore or shallow water areas. It says it is seeking strong exploration potential and ultimately cash-flow.