Tap Oil: Manora now producing from 5 wells (Thailand)

Tap Oil Limited today provided an update on the Manora project in the Gulf of Thailand, which started production in November 2014 with two wells, MNA- 01 and MNA-02, initially flowing at a combined rate of 2,200 barrels per day (gross).

Manora is now producing from five wells, MNA-01, MNA-02, MNA-03, MNA-05 and MNA-07. As of 11 January 2015, production of 11,198 barrels per day (gross) is flowing to the FSO. The first cargo lifting was completed on 24 December 2014, with proceeds to be received approximately 30 days from lifting.

Both MNA-07 and MNA-04 have now been completed with MNA-10 awaiting completion. MNA-07 is the first production well drilled in the east fault block and has been completed with an ESP pump and smart completion. MNA-04 and MNA-10 are injector locations in the central fault block. Pressure measurements in both wells confirm reservoir connectivity to the producing wells which is positive for water injection success.

Tap has sadi that as previously advised MNA-06 encountered a technical problem while drilling and has been plugged and suspended. An assessment will be made at the end of the development drilling program as to whether a re-drill will be required.

Tap has said that drilling has now started on the MNA-09 injector well in the central fault block and once this is drilled to final target depth the MNA-08 producer well in the east fault block will be the next well on the drilling schedule.

Peak in 2015

After drilling MNA-08 to final target depth, MNA-08, MNA- 09 and MNA-10 will be batch completed. It is anticipated that production will ramp up to a peak of 15,000 barrels per day (Tap share 4,500 barrels per day) during the first quarter of 2015.

During 2015, Tap forecasts a net cash flow from Manora of US$40 to US$60 million with oil prices between US$55-$65/bbl. This is after forecast Thai taxes, royalties and operating costs, but before repayment of debt.

The Manora A platform is located within the Gulf of Thailand in 46 metres of water. The development drilling program calls for drilling and completion of up to 15 wells (10 producers and 5 injectors), with the program expected to take until the end of Q1 2015. The Operator, Mubadala Petroleum, estimates that the joint venture will have invested approximately US$300 million in the development by this time.

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