Tap Oil Limited (TAP) will sell its 25% stake in WA-351-P exploration permit in Carnarvon Basin, Western Australia to Japan Australia LNG (MIMI) for $30m.

TAP will receive $26m in cash from the sale and MIMI will pay TAP’s 20% share of the next exploration well in the permit up to a cap of $10m.

TAP’s holding in the exploration permit will reduce from 45% to 20%, following the stake sale which is subject to relevant joint venture and government approvals.

BHP Billiton Petroleum (North West Shelf) is the operator and will retain a 55% interest in the exploration permit.

Tap also acquired 20% interest in the permit for $15.75m earlier this year.