Tangiers Petroleum Shares Dive in London as Trading Resumes

By Ian Walker

LONDON--Shares in Tangiers Petroleum Ltd. (TPT.AU) fell a further 68% in London on Monday as the stock resumed trading after the company last week said it failed to find oil at the TAO-1 well in the Tarfaya exploration block, offshore Morocco.

The dual Australia, London listed firm's shares have now fallen about 75% since the company first announced last week that there was no oil at the well, prompting it to halt trading in its shares on both exchanges. At 1050 GMT they were down 68%, or 4.87 pence, at 2.25 pence in London. Prior to the announcement on July 28 the shares were trading at 9 pence.

The oil explorer said the TAO-1 well will now be plugged and abandoned, and the results will be integrated into the regional basin analysis by Tangiers and its co-venture partners, to further evaluate and assess the prospects of the Tarfaya offshore blocks I-VIII.

Tangiers owns a 25% stake in the Tarfaya block while Portuguese energy firm Galp Energia (GALP.LB) acts as the operator.

Drilling at the TAO-1 exploration well started on June 26. The well had been drilled to a total depth of 3,518 meters and didn't encounter favorable reservoir quality, Tangiers said.

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