By Alex MacDonald
LONDON--Morocco-focused oil explorer Tangiers Petroleum Ltd.
(TPT.AU) said Wednesday it is fully covered for its share of the
drilling costs associated with the TAO-1 exploration well in the
north African country.
The Australia-listed company, which has partnered with
Portuguese energy firm Galp Energia (GALP.LB) to explore for oil
off the coast of Morocco, said the cost of drilling the TAO-1
exploration well at the Tarfaya Block is estimated at $73 million.
Tangiers Petroleum owns a 25% stake in the block while its partner,
Galp, acts as the operator.
Tangiers said it had net cash reserves of A$14.63 million
($13.73 million) at the end of June 30, which included $3 million
in Morocco as a bank guarantee. The cash balance doesn't include
the reimbursement of $7.5 million in back costs under its farm-out
agreement with Galp since this will likely be netted off against
Tangiers' share of the drilling costs.
Tangiers raised A$9 million in total during the month of May in
two separate share issues of A$5 million and A$4 million to
specified wholesale, institutional and other investors.
The company said its exploration costs for the three months
ending June 30 rose to A$0.035 million from A$0.019 million the
quarter before while administration and other operating costs
dropped to A$1.461 million from A$2.268 million for the prior
quarter.
Tangier's stock was trading at A$0.22 a share Wednesday,
resulting in a market capitalization of A$54 million or $51
million.
Write to Alex MacDonald at alex.macdonald@wsj.com
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