Tangiers Petroleum reveals oil potential at Trident prospect in Morocco

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SymbolPriceChange
GLPEF17.200.00
TRIDENT.BO16.05-0.09

LONDON (ShareCast) - Tangiers Petroleum on Monday said seismic data confirmed its Trident (BSE: TRIDENT.BO - news) prospect in offshore Morocco contained an estimated 750m barrels of recoverable oil.

The company has also upgraded the geological chance of success of the well from the previously advised 14% to 23%. The mean potential reserves are in line with estimates.

Tangiers retains a 25% interest in the block under a farm-out agreement struck with Portuguese major Galp Energia (Other OTC: GLPEF - news) last December.

Galp will spend $41m, including reimbursement of $7.5m to Tangiers for costs it has incurred. The transaction is subject to approvals from the Moroccan government.

The prospect will be drilled before mid-2014.

"The growing interest shown in this area by several well-regarded companies, combined with our own assessments of the geology, highlights the substantial potential of the Tarfaya block," Tangiers Executive Chairman Eve Howell said.

"The Trident prospect alone is a potential company-maker and we have already identified several other Jurassic prospects in the block. With Galp carrying the cost of the first well, Tangiers has a significant exposure to this upside while also being free to pursue our strategy of acquiring other growth assets in Africa."

Shares in Tangiers fell 5.52% to 21.38p at 10:16 Monday.

RD