By Alex MacDonald
LONDON--Shares of Tangiers Petroleum Ltd. (>> Tangiers Petroleum Limited) 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 (>> GALAP ENERGIA) 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.
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