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Tangiers Petroleum Limited has provided an update related to progress of its Moroccan operations.

Fully Funded for Drilling of TAO-1 (dry hole case, trouble free)

Tangiers has confirmed that the dry hole cost for the drilling of TAO-1, on a trouble free basis, is $73 m and in line with the previous estimate released to market. On this basis, Tangiers is fully covered for the drilling by existing cash and receivables, including headroom for material cost overruns. Given the weather conditions, shallow water depth and well control in the region, the Company does not expect overruns, but cannot guarantee that these will not occur and cautions investors that operational risk can never be fully mitigated.

Spud Date Imminent

The Company has confirmed that the Ralph Coffman jack-up rig was successfully loaded onto the heavy lift vessel MV Transshelf on the 25th May 2014 and is on track to deliver the rig nearby to the spud location on or about the 4th June 2014. The rig will undergo final checks and kitting out before being towed to site, where drilling is scheduled to commence on or about the 15th of June, in line with previous guidance for a mid-late June spud.

Tangiers has a 25 per cent participating interest in the Tarfaya Offshore Block, which is being operated by Galp Energia who has a 50 per cent interest. The remaining 25 per cent interest is held by ONHYM (Morocco’s National Office of Hydrocarbons and Mines).

The TAO-1 well is located within a proven petroleum system, adjacent to the Cap Juby oil discovery, and is targeting three stacked objectives.

Tangiers’ Managing Director, Dave Wall, said: “Tangiers would also like to thank investors for their support, through what has been a fast changing environment that has presented unique challenges, particularly in relation to funding. The Company is excited by the imminent drilling of the TAO-1 exploration prospect.”