LONDON--Tangiers Petroleum Ltd. (TPET.LN) Monday said the operator of the TAO-1 exploration well offshore Morocco estimated an indicative drilling budget of $75 million, and also said it wants to raise funds to guard against the chance of Tangiers being unable to fund its share of drilling costs.

MAIN FACTS:

-The estimate from Galp is subject to a +/- 25% variance

-Operator estimates TAO-1 to spud mid to late June

-Tangiers to pay 33% of drilling costs above Galp's $33 million cap

-Sees risk that Tangiers may face a well funding commitment which isn't covered by current funds

-Based on the indicative budget, Tangiers could face a shortfall of up to $6 million

-Could then default on JV agreement, possibly forfeiting some or all of its Tarfaya Offshore Block interest

-Given current funding capacity of AUD15M, board wants to raise capital

-Shares unchanged at 0732 GMT

Write to Ed Ballard at ed.ballard@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Galp Energia Sgps (EU:GALP)
Historical Stock Chart
From Nov 2021 to Dec 2021 Click Here for more Galp Energia Sgps Charts.
Galp Energia Sgps (EU:GALP)
Historical Stock Chart
From Dec 2020 to Dec 2021 Click Here for more Galp Energia Sgps Charts.