Tap Share Price, page-94

IMO the biggest issue facing TAP is resolving the financing problem that has appeared in mid January.
Based on company asx reported info the debt draw down levels were;

31/12 14 - US $ 65.4m
12/1/15 - US $68.5m
30/1/15 - US $68.5m

The DecQ stated "As at 30/1/15 Tap has drawn down US$68.5m of the borrowing base debt facility with BNP and Siam Commercial Bank. As the size of the borrowing base debt facility is linked to Manora reserves and revenues(as well as Third Party Gas revenues.), the maximum amount available for draw down under the facility fluctuates with changes in the oil price. Based on the current maximum available amount, the borrowing base debt facility is fully drawn."

Tap have maintained their share of development funding as US$ 97m which leaves a US$30m hole that is going to need plugging in all or part with delaying the completion of the final wells as one expenditure they are trying to defer. There is no commodity hedging in place and Tap are at the mercy of its bankers.

Can it be purely coincidence that sometime around when Tap are told no more debt money that starting on 20/1/15 notices begin advising Chatchai is increasing his stake to finish up with 19.98% by the end of the month??. Who sold their shares? Not one notice from any shareholder with more than 5% holding has been lodged advising they have reduced holding below 5%. Are we to believe a multiple of smaller holders with less than 5% have sold out?

IMO Tap are in a difficult spot and at best will arrange a new finance deal for the whole $US 97 m facility with a new lender or same lenders on much more onerous terms . Failing that there is the CR route , sale of part of Manora interest to other parties/partners given there appears no real interest in non manora assets or talk Chatchai up to a figure where they say good enough. That figure i think is 60 cents. Not great but this financing problem has been a game stopper for Tap and game on for Chatchai .

I am a long term Tap holder who does'nt post often but feel the next 4 weeks will reveal what type of future our company has and with whom.

MGWA