Tango Petroleum Limited ("Tango" or the "Company") has entered into a participation agreement with Quest Petroleum NL ("Quest Petroleum") pursuant to which Quest Petroleum granted to the Company the exclusive right to earn a 17.5% working interest in the Amazon Prospect located in Acadia Parish, Louisiana, United States of America (Amazon Prospect) and the option to earn a 17.5% working interest in another oil and gas prospect located in Acadia Parish, Louisiana, United States of America (Thames Prospect). The combined potential of these projects are between 500-750 billion cubic feet of gas and 55-75 million barrels of oil.
Amazon is a highly prospective onshore oil and gas exploration prospect situated South Louisiana. It has estimated gross recoverable reserve potential of 450-600 billion cubic feet of natural gas and 45-60 million barrels of oil. Drilling is expected to begin in early Q4 2010.
Tango also has the right, but not the obligation, to participate in the Thames Prospect in South Louisiana ("Thames"). Thames covers an estimated area of 1,200 acres, with an estimated gross recoverable reserve potential of 100-150 billion cubic feet of natural gas and 10-15 million barrels of oil. Should the option to participate in Thames be exercised, drilling is expected to begin in late Q4 2010.
SEPTEMBER QUARTER ACTIVITIES REPORT
The Amazon prospect extension recently announced by the project operator upgrades the potential of Amazon by 50 to 100 BCF to between 450 to 600 billion cubic feet of natural gas and 45 to 60 million barrels of oil.
The combined potential of the Amazon and Thames targets is between 500 to 750 billion cubic feet of gas and 50 to 75 million barrels of oil.
Location activities are well advanced with a spud date for Amazon in December 2010 following the recent completion of landowner agreements.
Tango's share of the dry hole cost of the first well is estimated at US$2,430,000. These funds are currently held in a USD account.
Getting ever closer to the spud date which has seen a couple of delays in the past. Bring it on.
I'm in as of today.