(MENAFN - ProactiveInvestors - Australia) Tangiers Petroleum's (ASX:TPT) Moroccan bet appears to have paid off with a detailed 3D seismic program uncovering a company-making 750 million barrel potential at its Tarfaya offshore block.
The seismic data confirms the Trident prospect and secondary objectives at Assaka and TMA potentially containing up to 750 million barrels of recoverable oil with a geological success rate of 23%.
Tangiers will retain a 25% interest in the Tarfaya block under the farm out agreement between Tangiers and Portuguese major Galp Energia last year.
Subject to approvals from the Moroccan government, Galp will spend US41 million, including reimbursing Tangiers US7.5 million for costs it incurred.
Galp will also fund an exploration well to target Trident and the secondary objectives in Assaka and TMA, which will be drilled before middle of 2014.
The Tarfaya offshore block is in the same Jurassic hydrocarbon system associated with the Cap Juby discovery made in the 1960s.
The region has already garnered interest from many independent oilies including London-listed Cairn Energy and Genel Energy, that have made significant acquisitions recently.
Cairn and Genel are partners in the Cap Juby oil discovery to the west of Tarfaya and the field is estimated to hold 250 million barrels. An appraisal/exploration well is planned for 2014.
Genel also has 60 per cent of another nearby block in the region known as Sidi Moussa, where it is targeting a resource of more than 850 million barrels of oil equivalent. The first exploration well is scheduled for the first half of next year.
Based on published work programs, up to four exploration wells are expected to target the Jurassic Carbonate fairway in this area over the next 12 to 18 months.