Tangiers Petroleum to raise A$5mln ahead of Morocco drilling
Tangiers Petroleum (LON:TPET) confirmed its funding plans, with A$5mln being raised through a private placing of shares to certain institutional and sophisticated investors.
The cash is intended to cover any possible overruns to drilling costs for the upcoming TAO-1 well should they exceed the US$33mln ‘free carry’, which results from the prior farm-out to Galp.
Managing director David Wall told investors the raise would ensure the company was well-funded as it sought to take full advantage of its strong growth opportunities.
“The TAO-1 well is a potential company-making opportunity,” Wall said in a statement.
“This is reflected in the encouraging support for the placement among new institutional and sophisticated investors.”
Tangiers revealed the funding will take place in two separate tranches, with 23.6mln new shares being issued initially. A further 7.5mln share will be issued latery, once the proposal has been approved by shareholders through a vote in early June.