As suspected, TAP has paid a lot of the Manora proceeds by cash before the debt draw-down.
According to the last 11 quarterly reports, TAP has paid A$145.6m towards the development of the Manora oilfield. This number is hard to equate with the stated US$ capex number as the currency volatility has been high. The current debt of A$79.7m (as at Dec-14) represents 55% of the capex on the project to date.
As at end June 2012, TAP had A$108.1m in cash which was partially spent on the development. When the initial debt draw-down was reported via the quarterly, cash was A$16.4 against the A$20m of initial debt as at March 2014.
Therefor your thesis that more debt is needed is incorrect, as a substantial cash spend was made before the debt was required.
Hope this helps allay your fears.
Cheers, Al
TAP Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
