Tap increases its interest in WA-351-P

Tap Oil Limited has exercised its pre-emptive right to acquire an additional 20% interest in the highly prospective WA-351-P exploration permit in Western Australia’s Carnarvon Basin.
This unique opportunity for Tap to increase its interest in this strategic permit arose as a result of Tap’s right under the joint operating agreement to pre-empt Roc Oil (WA) Pty Limited’s sale of its 20% interest in WA-351-P to Woodside Energy as announced to the ASX on 20 December 2010.
Tap will acquire the additional participating interest from Roc Oil (WA) Pty Limited for a cash consideration of US$15.75 million, increasing Tap’s holding in the exploration permit from 25% up to 45%. BHP Billiton Petroleum (North West Shelf) Pty Ltd will retain a 55% interest and is the Operator. The acquisition by Tap is subject to relevant government approvals.
The acquisition and additional participating interest will be funded from existing cash reserves.
Tap’s Managing Director and Chief Executive Officer Troy Hayden said:
“We see WA-351-P as being one of three priority or core assets in our current portfolio, alongside Thailand and Ghana.  Thus, Roc Oil (WA) Pty Limited’s sale agreement with Woodside Energy Ltd provided us with a unique opportunity to exercise our pre-emptive right and improve the leverage in one of our most prospective projects.
WA-351-P offers significant leverage to large potential gas resources at a time when there is competition between several LNG players to find gas for their expansion plans. 
Moving to 45% provides Tap with a large enough stake in the project to have several options available in the near future, including the ability to farm down to an incoming party for a promoted interest in future drilling programs and still retain a material stake in the permit.”
Source: Press release