Tap Oil Acquires Stake in Sandakan Basin, Philippines
Tap Oil has entered into a farmin agreement to acquire a 58% interest in Service Contract 41 ("SC 41") in the Sandakan Basin, Philippines. Under the farmin agreement, Tap is appointed as Operator of SC 41.
SC 41 is an area of approximately 5,000 square kilometers with water depths ranging from 200 to 2,000 meters.
Under the terms of the farmin agreement, Tap will contribute to the costs of the acquisition and interpretation of 300 square kilometer 3D seismic data. After completion of the interpretation of this data, Tap may elect to continue into the next year of the permit term by contributing to the funding of an exploration well.
The acquisition of a significant interest and operatorship in SC 41 forms part of Tap's strategy to establish a new area of focus in oil and gas rich areas of South East Asia. There are numerous large oil and gas fields in this area and the fiscal regime in the Republic of Philippines is relatively attractive.
The prospectivity of SC 41 comprises of a number of play types which are interpreted to have the potential for oil accumulations in the range of 50 to 150 million barrels. Tap's initial interest is focused on a trend of large scale four-way dip closures, already mapped on existing 2D seismic, some with direct hydrocarbon indicators. In 2000 the Wildebeest -1 exploration well, discovered 40o API oil, and gas in this block. This discovery, identified only on 2D seismic data, demonstrates the existence of a hydrocarbon system and may present an appraisal opportunity in the future.
Looking forward, Tap proposes to acquire the abovementioned 3D seismic survey later this year with a view to identifying drillable prospects by mid 2007.
The participants in SC 41 and their respective percentage interests following the completion of the farmin will Tap Oil as operator with 58.269%; Forum Energy Philippines Corporation with 26.731; Southwest Resources, Inc with 0.608%; Philodrill Corporation with 3.398%; Philex Mining Corporation with 2.264%; Oriental Petroleum and Minerals Corporation with 5.463%; Universal Robina Corporation with 0.498%; South China Resources, Inc. with 1.090%; Anglo Philippine Holding Corporation with 1.679%.