Rabat- Australian oil exploration company Tangiers Petroleum has ceased drilling on the on the Tarfaya block, which it shared with Galp Energia. It has transferred its interest in the block back to Galp Energia.
The company explained on its website via an article in Proactieinvestor.com that the well exceeded their internal budget, since costs for its share exceeded USD $18.56 million. The company said that the costs did not entirely relate to its drilling operation. It was left with a cash balance of $1.25 million. The trading suspension of the group’s shares was lifted following the disclosure of the company’s interim results, the article reported.
Shares of Tangiers Petroleum on the London Stock Exchange’s AIM index fell by over 60% as the suspension was lifted, falling from 1.47p to 0.9p. At this price, the company is worth £2.27 million. The company has now decided to exit the Moroccan exploration venture, which is currently its only project, according to the Pro investor report.
Tangiers Petroleum was said to be reviewing other exploration opportunities.
International oil and gas exploration companies have been funding drilling operations in Morocco with cash. This can result in heavy financial and stock market pressures, as has occurred with Tangiers Petroleum.
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