Tap Oil divests Australia and New Zealand portfolio

Tap Oil has signed a sale and purchase agreement (SPA) with Kensington Energy, a privately-owned Australian oil and gas investment company, to sell its residual Australian and New Zealand portfolio.

Source: Tap Oil

The transaction involves Tap selling a 20% participating interest in the BHP-operated WA-72-R, which contains the Tallaganda gas discovery and for which Tap has booked 49 PJ of net 2C gas resources.

It also includes a 15% participating interest in the Eni-operated WA-25-L including the shut-in Woollybutt Oil Field where abandonment activities are tentatively scheduled between 2020 & 2021. Tap has a $6.46 million provision for Woollybutt field abandonment in its 2019 half year accounts.

Finally, the deal includes a 5% oil, gas, and condensate overriding royalty interest over 66.67% of NZ PMP 38748 that includes the producing Sidewinder oil and gas field. Tap recorded revenue in 2018 of $0.15 million.

Tap said on Monday that this move is consistent with its strategy of focusing capital and capability on Manora reinvestment opportunities, rationalizing, and commercializing the Australian portfolio, and reducing capital, operating, and corporate costs.

The effective date of the sale is March 31, 2019, with the economic benefit and burden passing as at that date.

As a result of the sale, Tap has passed on any field abandonment costs associated with Woollybutt and will therefore no longer have that future liability.

The agreement does not contain any conditions precedent, no government approvals are required and no joint venture partners have exercised their pre-emptive rights over WA-72-R. Accordingly, it is anticipated that completion of the transaction will occur in the next few days.

The transaction will result in Tap booking a profit on the sale of $2.58 million after tax reflecting the difference in the consideration and fully written down value of WA-72-R and the WA-25-L provisions.

 

Focus on Manora

 

The transaction means that Tap’s only remaining interest outside of Manora is WA-34-R, which contains the Prometheus and Rubicon gas fields (Tap 12%) where Tap has booked net 2C gas resources of 45 PJ. Tap is actively working on exiting this block and expects to do so before year end 2019.

Tap’s Executive Chairman, Chris Newton, noted that the transaction was entirely consistent with the company’s previously disclosed strategy of delivering shareholders value from the existing Tap portfolio by simplifying and re-positioning Tap as a Thailand oil producer focused on Manora reinvestment opportunities.

“Tap now looks forward to an exciting Manora infrastructure led exploration program, expected to spud in November 2019,” the company concluded.


Spotted a typo? Have something more to add to the story? Maybe a nice photo? Contact our editorial team via email.

Also, if you’re interested in showcasing your company, product or technology on Offshore Energy Today, please contact us via our advertising form where you can also see our media kit.

Share this article

Follow Offshore Energy Today

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

OilComm 2019

OilComm is a place where major players in energy, maritime, and transportation communities come together…

read more >

Uganda International Oil and Gas Summit 2019

Uganda International Oil & Gas Summit will once again examine the industry’s developments…

read more >

Argentina Oil and Gas Expo 2019

The Argentine Oil and Gas Institute (IAPG) organizes the Argentina Oil & Gas Expo bringing together the most…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply