"The Consolidated Entity has secured 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 were undrawn at 31 December 2013. Refer to note 26 on details of drawings subsequent to the year end.
Note 26 (Subsequent Events) - pg 76
"Since the end of the financial year to the date of this report, Tap has drawn $20 million under its facilities with CBA and has cash on hand of $24.5 million"
I guess then total available liquidity is roughly $74.5M namely $24.5M (CoH) + $50M of Manora development debt facility.
Throughout the half yearly then are numerous references to additional liquidity being required before May. Rightaway on pg 2 they report
"As a result of cost overruns and schedule delays on the Manora oil development, coupled with additional drilling and unplanned work as part of the 2013 exploration program, the Company requires additional temporary liquidity ahead of the expected May 2014 drawdown of the Manora debt facility and anticipated commencement of production at Manora in August 2014. As at the date of this report Tap has drawn down the CBA $20m corporate facility and is working on a number of options to provide further liquidity, including additional financing and monetisation of the significant value retained in its non core assets."
So either the debt grows (further), assets are sold (which we want if its the right asset and price) or equity is injected.
They are flat out telling you they cannot funud all commitments with the liquidity they have.
TAP Price at posting:
43.5¢ Sentiment: Hold Disclosure: Held
