Australia: Tap Oil Sells Subsidiary to Apache

Tap Oil Limited yesterday announced the completion of the sale of its wholly owned subsidiary, Tap (Harriet) Pty Ltd, to a subsidiary of Apache Corporation (Apache).

The sale was first announced to the ASX by Tap on 13 February 2012. Tap (Harriet) Pty Ltd holds a 12.2229% interest in the Harriet Joint Venture (HJV) as well as a 10% interest in WA-45-R, WA-46-R and a 20% interest in WA-334-P.

The effective date of the transaction is 1 January 2012.

With the sale completing, Tap has now received the US$10 million and all liabilities relating to the HJV have now been transferred. This includes liability for the abandonment of the fields and facilities, for which Tap had provisioned $28 million, and the two legal actions currently outstanding: Gas contract dispute with Burrup Fertilisers; and Alcoa proceedings.

Tap will retain its interests in the third party gas business. This business will generate approximately $30 million of revenue per year until the end of 2016.

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Source: Tap Oil Limited, May 1, 2012