Tap OilGillian TanAFR 24 January 2011, page 23The oil and gas...

Tap Oil
Gillian Tan
AFR 24 January 2011, page 23

The oil and gas explorer-producer will be hoping for a bounce. The stock has fallen by 25% in the past 12 months and is trading close to its 52-week low of 78C. Subject to government approvals, Tap Oil has exercised its pre-emptive right to acquire an additional 20% strategic stake in the highly prospective WA-351-P exploration permit in WA's Carnarvon Basin. The opportunity arose from Tap's right under the joint operating agreement to pre-empt ROC Oil's sale of its 20% stake to Woodside Energy. Tap will pay $US15.75m for the stake, increasing its permit holding to 45% from 25%. Operator BHP Billiton Petroleum - the global oil and gas explorer and producer - retains the remaining 55%. The company asserted the site as one of the three priority core assets, alongside Ghana and Thailand. Most analysts have a "buy" recommendation on the stock, giving it an average price target of $1.22