Hi all I have slowly being reading through old presentations and...

Hi all

I have slowly being reading through old presentations and it has been very interesting as each presentation has different info/detail on the various permits

Feb 09 for eg has some good slides about Belait, its proximity to 2 billion barrel fields and one 200 million barrel field.

Upon reading all this it seems to me that there are three prospects that are truly exciting
1, Belait, onshore and low cost to drill with any success opening up the chance of a 2-15 million barrel addition to reserves. Their is no question this is a significant oil area.
2, WA 351. Hess' recent success and all the surounding elephants makes this area highly prospective. he success rate is extremely high and there is no reason to think the gas does no exist in the neighbouring permit. Interestingly a point made in an old preso is where 3D seismic shows bright spots indicating gas, 50% end up in discoveries and the permit has targets with bright spots. Also what is attractive is with the Hess discoveries, infrastructure to monetise the gas or aggregate finds will not be an issue therefore commerciality becomes easier
3 The Philippines permit. If Exxon do have a major oil find on their hands, and at this stage indications are that this is possible, then TAPs 50% interest next door, this will allow for a farmdown and potential free carry of 15-20% for TAP. If and when this drilling comes I can assure you the excitment will add 30-50 cents to the SP alone

We have bass basin and the Zola prospect as well but the above 3 really excite me as the first two are in very very oil rich areas and the last one Tap has a major holding an may prove to be a new oil province. I would say that most their permits have become more attractive and valuable as the majors have drilled around them with success. This would make farming down more lucrative in the future

Tap have been very conservtaive with cash and shares on issue but personally I wouldn't mind a few extra shares on issue to raise a little more chase to pursue all their targets, perhaps not now but maybe when the SP recovers to 1.25-1.50. 30 million new shares at 1.50 will add 45 million to the coffers and allow for some active drilling.

Lastly, TAP revenue is 55-60% gas based which is good due to the lack of currency impact and lower price volatility. the earnings base is stable and the future is bright. It seems that are analyst friend Mario has bought within the last year, perhaps its all those Hess discoveries that have got him interested.