Tangiers Petroleum has done remarkably well extricating itself from its offshore Moroccan exploration commitments (after disappointing drilling results) to...

Tangiers Petroleum has done remarkably well extricating itself from its offshore Moroccan exploration commitments (after disappointing drilling results) to reposition itself in a highly prospective area in Alaska. A technical report released in January points to a relatively high probability of a very large resource. Others are drilling near the Alaskan properties. Their results could spark interest even before Tangiers has done anything but the company will have to test capital markets before investors have a good sense of how much of the project they will retain. The company does not currently have enough capital to take full advantage of its new positioning which is subject to a range of approvals due later this month. Until recently, financing an unconventional oil play in Alaska would have been a doddle. Not now. The Moroccan experience illustrates how expensive and risky oil exploration can be even in the most prospective locations and at the best of times. Deep pockets or extraordinary luck are prerequisites. A PortfolioDirect rating report for Tangiers Petroleum is available through Bloomberg.