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.