Tap Oil has entered into an agreement for the sale of its 22.474% non-operated interest in WA-33-R, in the offshore Carnarvon basin of Western Australia.

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Image: Tap Oil to sell stake in Carnarvon basin block. Photo courtesy of rawpixel on Unsplash.

Pursuant to the terms of the SPA, the Company’s wholly owned subsidiary Tap (Shelfal) will sell its interest in WA-33-R to its joint venture partners Quadrant Oil Australia and Santos (BOL) (collectively, Buyers)  with Tap Shelfal’s interest being split between the Buyers 12.361% and 10.113% respectively.

The effective date of the transaction is 1 July 2018, being the date from which the Buyers assume Tap Shelfal’s interest. Tap Shelfal retains capped exposure to pre-effective date liabilities, for a limited period. The transaction consideration and residual liabilities are not material to Tap.

As is usual, the parties may unwind the transaction if regulatory approval is not obtained within a defined period. The WA-33-R block contains the Maitland gas discovery for which the Company previously recognised a net 2C Resource of 34.8 PJ gas and 0.3MMstb liquids in the ‘Development not Viable Category’.

The sale of WA-33-R is consistent with the Company’s strategy to rationalise and monetise its Australian portfolio  and focus its financial resources and technical skills on extending production and reserves in and around the Manora Oil Field in G1/48 Gulf of Thailand, where Tap has a 30% working interest.

Source: Company Press Release