Photo by: Bloomberg
PERTH (miningweekly.com) – Junior oil and gas explorer Tangiers Petroleum has raised some A$4-million through a share placement to institutional and sophisticated investors, to meet the funding requirements of its Tarfaya farm-out agreement, in Morocco.
The A$4-million was raised through the issue of 25-million shares, at a price of 16c each, and followed a previous A$5-million placement, conducted earlier in May, which was also priced at 16c a share.
Tangiers MD Dave Wall said on Tuesday that at the time of the initial placement, the company had planned to raise up to A$10-million, but at the time, the company was only able to raise A$5-million.
Since then, Tangiers has experienced strong, unsolicited demand from major investors for the remainder of the placement stocks.
“We believed from the outset that a raising of A$8-million to A$10-million was the ideal amount given our possible outlays in relation to the well and our strategy to ensure that shareholders had the maximum possible exposure to drilling success,” Wall said.
“Strong investor interest in the well has now enabled us to achieve that initial target and as a result, we are in a strong cash position as we await spudding.”
Tangiers has a 25% participating interest in the Tarfaya offshore block. The first well is located within a proven petroleum system, adjacent to the Cap Juby oil discovery, and was targeting three stacked objectives.
The exploration well would be spudded in mid to late June, and was targeting a best-estimate net resource potential of some 190-million barrels of oil.