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    Junior Quits NZ, Reduces Oz Footprint

Summary

Beyond its main focus in Thailand, Tap's only remaining interest will be a 12% position in a pair of Western Australian gas fields.

by: Joseph Murphy

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Junior Quits NZ, Reduces Oz Footprint

ASX-listed independent Tap Oil has struck a deal to divest the bulk of its remaining Australian and New Zealand assets, it said in a stock exchange filing on September 9.

Under an agreement with fellow Australian explorer Kensington Energy, Tap will transfer a 20% stake in the BHP-operated WA-72-R licence off the coast of Western Australia containing the Tallaganda gas discovery. Tallagana has 49 petajoules of best-estimate contingent resources.

Tap will also hand over a 15% interest in the Eni-operated WA-25-L block, also off Western Australia, which comprises the shut-in Woollybutt oilfield. Finally, it will provide Kensington with its 5% oil, gas and condensate royalty interest over 66.7% of New Zealand block PMP38748, including the active Sidewinder oil and gas deposit. Tap secured $0.15mn in revenues from this project last year.

Tap said the deal’s closure was anticipated within days, noting it would be backdated to March 31. It did not disclose the transaction's value. After its completion, the company’s only remaining interest beyond its main focus, the Manora oilfield in Thailand, will be a 12% position in Western Australian block WA-34-R, holding the Prometheus and Rubicon gas fields. Tap nets a best estimate gas resource of 42bn ft3 for these deposits.

“Tap is actively working on exiting this block and expects to do so before year end 2019,” it said.