Tap Oil Limited announced Wednesday that production has commenced at its flagship Manora Oil Development in the Northern Gulf of Thailand (Tap 30 percent interest) Nov. 11. The commencement of production has returned the Company to producer status following a two-year hiatus.
Tap Managing Director/CEO Troy Hayden said:
"The return to production constitutes a watershed event for Tap. It repositions the company as a mid-tier producer, it is expected to generate significant cash flow and to broaden the company’s investor appeal.
This forecast transformation in the company’s cash flow opens up a range of options which are being actively considered, including capital management (particularly utilizing the large franking credit balance) and reinvestment opportunities. All opportunities are assessed with a strict commercial and financial return focus.
Peak production at Manora is expected during 1Q 2015, with a possible material reclassification of 2C resources into 2P reserves over the course of 2015.
With the recent increased 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 realizing value.”
Production has commenced from two wells. As at 4:00pm AWST yesterday the Operator, Mubadala Petroleum, reported that flow has been brought online from the two wells, and is being progressively ramped-up from an initial combined rate of 2,200 barrels per day (gross). Start-up went safely and without incident. Flow will commence to the FSO (floating storage offloading) once production passes 5,000 barrels per day (gross). It is anticipated the platform will ramp up to peak production of 15,000 barrels per day (4,500 barrels per day net to Tap) during the first quarter of 2015.
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