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Tangiers Petroleum readies for ramp-up in oil and gas exploration in Morocco

Tangiers Petroleum readies for ramp-up in oil and gas exploration in Morocco

October is an important month for Morocco's nascent offshore oil and gas industry as Cairn Energy sinks the first two wells planned before the year-end, firing the starting gun on a most frenetic period of activity.

If all goes to plan then up to 10 wildcats could be put down in the next year to 18 months that, if successful, could open up a whole new oil frontier.

For Cairn and the likes of Genel and Kosmos that are prospecting in the area, a discovery will probably only add a few pence (or cents) to net asset valuations of these larger independents.

However, the drilling could be company-making for the juniors that are carried on these expensive campaigns in Morocco.

One business looking forward to the flurry of activity of the coast of north-west Africa is Tangiers Petroleum (ASX:TPT, LON:TPET).

The group has a 25% interest in the Tarfaya block where it is partnered with Galp Energia. The deal with the Portuguese outfit has a headline value of US$41mln, including back costs of around US$7.5mln.

The plan is to drill the Trident target, with a P50 recoverable resource of 423mln barrels, in the second quarter of next year.

The tie-up still needs to undergo the formality of ministry sign-off, which could occur in a matter of weeks. Trident is the largest of four prospects that give a P50 resource total of just shy of 870mln barrels unrisked recoverable oil.

 

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