Tap Oil's Drilling Programme Attracts Attention Of Australian Oil Analysts.Australian junior E & P company Tap Oil's bid for fellow Aussie Arc Energy has just lapsed, but Tap still looks like a role model for wannabe oil and gas start-ups. Tap's reason for its all paper offer for Arc was that Arc's Perth Basin exposure would provide Tap shareholders with a second area of focus where the same successful strategy Tap has used on its North West Shelf acreage could be applied.
Like Strike Oil, about which we wrote recently, Tap concentrates on Australia. But it is further along the road than Strike in that it has production. This currently comes from the Harriet group of oil and gas fields located offshore in the Carnarvon Basin. These fields are centred on the Varanus Island production infrastructure hub, an important strategic facility to Tap.
The Varanus hub comprises substantial facilities to process both oil and gas for export. The Harriet group of a dozen or so fields' oil production is piped to the island, processed, stored and then offloaded into tankers on a regular basis. Tap has 12.22 per cent of the action in the Harriet group. Current production is around 16,000 barrel per day of liquids (oil and condensate) with some gas. Proven and probable reserves 76 million barrels of liquids.
Production from some fields is due to increase next month. Besides Harriet Tap has participated in four discoveries in the past four years. There is a 15 per cent interest in the Woollybutt oil discovery located inWA-234-P in the Carnarvon Basin, a 10 per cent interest in the Corvus gas field in WA-246-P in the Carnarvon Basin, a 10 per cent interest in the Tusk oil field in WA-246-P in the Carnarvon, and a 12 per cent interest in the Prometheus, Saratoga and Rubicon gas fields in the Bonaparte Basin
Some of these discoveries will come on stream before the end of the year. Production means cash flow, which in turn means further opportunities can be exploited. Tap has interests in highly prospective permits covering in excess of 3,715 square kilometres in its stated area of focus.
Tap Oil is one of the favourites among the Aussie juniors for analysts. Managing Director Paul Underwood says that 16 wells will be drilled this year, some on the Harriet group assets and elsewhere in Western Australia. He adds the company has 100 identified prospects and it is the successes and leverage to future discoveries which have kept the shares advancing to a current market capitalisation of A$230 million.Source of article...... oil-barrel.com/archives/news_archive/2002/may-2002/tapoil300502.htm
