By Alex MacDonald
LONDON--Shares of Tangiers Petroleum Ltd. (TPT.AU) fell 30%
after the Morocco-focused oil explorer said its TAO-1 offshore
exploration well didn't encountered any hydrocarbons at the key
Assaka intersect.
The company has been drilling the TAO-1 well with the primary
purpose of looking for hydrocarbons in the Trident area of the
Tarfaya Block off the coast of Morocco. It had hoped to find
hydrocarbons at the Assaka intersect along the way.
Tangiers owns a 25% stake in the Tarfaya block while Portuguese
energy firm Galp Energia (GALP.LB) acts as the operator.
"Tangiers interpret(s) that success at Trident is not
co-dependent on the results from Assaka," said the oil explorer,
adding that TAO-1 drilling will continue according to plan.
The TAO-1 exploration well at the Tarfaya Block is estimated to
cost $73 million to drill.
Tangiers' shares were down 30% at 14 pence a share as of 0808
GMT, resulting in a market capitalization of 50 million pounds or
$85 million.
Write to Alex MacDonald at alex.macdonald@wsj.com
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