Tap Oil starts production at Thai project
PERTH (miningweekly.com) – Junior Tap Oil has reported the first production from its flagship Manora oil development in the northern gulf of Thailand, returning the company to producer status.
Production from two wells was progressively being ramped up from an initial combined rate of 2 200 bbl/d to peak at 15 000 bbl/d in the first quarter of 2015.
The project, in which Tap Oil holds a 30% interest, was expected to have a mine life of some 11 years, and could be further enhanced if discoveries were made within tieback distance.
“The return to production constitutes a watershed event for Tap. It repositions the company as a midtier producer - it is expected to generate significant cash flow and to broaden the company’s investor appeal,” said Tap MD and CEO Troy Hayden.
“With the recent increase in deal flow in the mid-cap oil and gas sector, it is apparent that long-life production assets with substantial 2P reserves, such as Manora, are highly sought after and valued. The conclusion of the Manora development is a key milestone for Tap in realising value.”
Hayden added that the forecast increase in the company’s cash flow also opened a range of options for Tap Oil, including capital management and reinvestment opportunities.
“All opportunities are assessed with a strict commercial and financial return focus,” he said.
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