Fledgling oil explorer Tangiers Petroleum (TPET) and Portugal's Galp Energia have received the final regulatory approvals from the Moroccan government necessary to begin drilling the high-impact TAO-1 exploration well in June.
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Under the terms of its farm-out agreement with Galp, Tangiers' liabilities from drilling are expected to be around $14m (£9m), subject to a plus or minus 25 per cent variance. With the company's current funding capacity totalling just $15m, Tangiers' new management team has decided to raise A$5m (£3m) through a private placement to provide a safety buffer.
The placing closely follows the collapse of Tangiers' bungled takeover bid for Australia's Jacka Resources.
