Tap Oil closes sale of Australian and New Zealand portfolio

  • Business & Finance

Tap Oil has completed the sale and purchase agreement with Kensington Energy and has sold its residual Australian and New Zealand portfolio to Kensington.

Tap Oil signed a sale and purchase agreement with Kensington Energy, a privately-owned Australian oil and gas investment company, to sell its residual Australian and New Zealand portfolio earlier this week.

The transaction involved Tap selling a 20% participating interest in the BHP-operated WA-72-R, which contains the Tallaganda gas discovery and for which Tap has booked 49 PJ of net 2C gas resources.

It also included a 15% participating interest in the Eni-operated WA-25-L including the shut-in Woollybutt Oil Field where abandonment activities are tentatively scheduled between 2020 & 2021. Tap has a $6.46 million provision for Woollybutt field abandonment in its 2019 half year accounts.

Finally, the deal included a 5% oil, gas, and condensate overriding royalty interest over 66.67% of NZ PMP 38748 that includes the producing Sidewinder oil and gas field. Tap recorded revenue in 2018 of $0.15 million.

The agreement did not contain any conditions precedent, no government approvals were required, and no joint venture partners exercised their pre-emptive rights over WA-72-R.

The move is part of Tap’s strategy focusing capital and capability on Manora reinvestment opportunities, rationalizing, and commercializing the Australian portfolio, and reducing capital, operating, and corporate costs.

Tap holds a 30% direct interest in the G1/48 concession, which holds the Manora oil field. It is located offshore in the Gulf of Thailand and it is operated by Mubadala Petroleum.

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