Company Update, page-7

Hi Mike
I liked the Quarterly, eg:

• US$25 million debt repayment, with now only US$43.5M owing:
  • quarterly sales revenue of US$25.4M, with that revenue being very profitable - cf costs
  • Manora still producing strongly, with normal minor issues only, thankfully
  • 3rd party gas contracts still pouring in highly profitable revenues (until end 2016)
• abatement of disruption from the 19.9% Thai shareholder, who seems to have decided it's best to not shoot himself in both feet??
• Legal actions taking their course, with TAP having secured decisive victory in getting nonsensical statutory demand thrown out by WA Supreme Court
• TAP has more than one financing option, and considering other financiers if current financiers unreasonable payment schedule is not modified. Obviously this is still work in progress - none of these people are easy to deal with, given that a lot of money is involved and how bankers operate. TAP has excellent skills in this area given the experience of TAP's MD, Chairman and in-house finance guru, so we'll get as good a deal as is possible.
• Operator's claim for extra Project costs - being negotiated slowly and not aggressively, which is appropriate seeing as the Operator (Mubadala) pulled a big extra costs claim out of the hat almost at the last moment. Was a very bad look for Mubadala's reputation as a reliable Operator, IMO, and also implies there will be weak points in their claim so they'll have to give some ground to TAP, I think.
• TAP still has nice asset package, including offshore WA acreage that will be worth good money again one day; just have to hold until a buyer pays a fair price. Myanmar seems a good addition to the portfolio, with good upside potential (if technical work supports early promise), and high equity (95%) giving TAP some trading chips
• market cap of US$41M as I write this (243M shares at AU23.5c at AUD:USD of 0.717) is dirt cheap but obviously reflects deep, deep market unhappiness (I'll use that polite word) with the 19.9% holding of that shareholder who the rest of us wish we'd never heard of.