Tangiers Petroleum reveals oil potential at Trident prospect in Morocco

Tangiers Petroleum on Monday said seismic data confirmed its Trident 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 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