..Highlights • Gas discovery at Bianchi-1 in WA-49-R • Evidence of residual oil at Starfish-1 possibly providing support for an active petroleum system • Farm down of Tap’s interest in WA-320-P and WA-155-P (Part II) for a carry on the Palmerston well • Manora platform construction and FSO conversion continues
..The drilling of the Taunton-5/5H appraisal well was an opportunity to prove up additional resources in the Taunton oil field, which was discovered in 1991, and provide greater clarity on development options and timing.. The well data will be incorporated by the Operator into the field geological model to update the oil in place estimates for the Taunton field. At this stage, Tap is pleased with the results at Taunton and is working towards a strategy for commercialisation of this field... The next quarter will see Tap focus on assessing the results from the three wells drilled during the quarter, as well as firming up the prospect for drilling in Thailand in late 2013 and progressing the Manora Oil Development... Third party gas revenues were in line with the previous quarter. Forecast third party gas revenues are expected to be sustained at around $30 million per annum until the end of 2016, generating substantial cash flow... ..In July, the Joint Venture confirmed a gas discovery at Bianchi-1 with 112 metres of natural gas net pay interpreted in the Mungaroo Formation reservoir sandstones. The well was drilled to a total depth of 5,429 metres and was plugged and abandoned as planned. The discovery is very positive for Tap and provides additional information in understanding the options for commercialisation of the lease.... Tap’s cash position continues to be strong at A$74.9 million at the end of June 2013. Tap has a US$50 million Manora field development debt facility and a A$20 million corporate debt facility with the Commonwealth Bank of Australia. Both facilities are currently undrawn...
MY THOUGHTS ONLY
TAP is cashed up with $74.9 million at the end of the June quarter. During the next quarter TAP will be focussing on recent drilling results, firming a prospect for drilling in Thailand in late 2013 and progressing the Manora oil development. It seems TAP has not given up on the Accra Block in Ghana as yet. Good to see that TAP is pleased with Taunton results and is working towards a commercialisation strategy there. Everything still seems to be on track with Manora. The Bianchi1 gas discovery is great news.
As for the share price reaction, the day's low was 50.5c and the high was 55c, so it was good to see TAP finish up 1c for the day to 54c on reasonably average turnover.
TAP Price at posting:
54.0¢ Sentiment: Buy Disclosure: Held
