Australia: TapOil Posts 1H Results

TapOil today announced first half 2011 results ended June 30, 2011.

Highlights

• Cash flow from operations of $7.6 million
• Minor underlying loss after tax (excl. non-recurring items) of $0.7 million
• Exploration write downs and impairments of $6.5 million
• Cash reserves of $53 million with no debt – not including US$30 million receivable
• Significant gas discovery at Zola-1 well in the Carnarvon Basin
• Commercial oil field discovery at Finucane South in the Carnarvon Basin
• Acquisition of additional 20% stake in the highly prospective WA-351-P for US$16 million followed quickly by a sell down of 25% to BHP for US$30 million cash and a US$10 million well carry
• Manora development on track to book reserves in 2011 and first oil in early 2014
• Completed acquisition of 3D seismic over large deepwater leads in Ghana
• Management restructure under new CEO

Managing Director, Mr Troy Hayden said:

“The first half of 2011 has been very successful for Tap with the big gas discovery at Zola, the oil discovery at Finucane South which Santos are looking to FID by the end of the year and the highly profitable equity trade on WA-351-P.

“The second half of 2011 should see some major milestones met with the booking of 6 mmbbls of 2P reserves at Manora, independent verification of the greater Zola structure being at the upper end of 1-2 Tcf and at Finucane/Fletcher – FID and the booking of 1.2 mmbbls of 2P reserves. This will put Tap in a very solid position going in to 2012.”

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Source: TapOil, August 26, 2011;