Tap Oil to shed Australian permit stake

  • Business & Finance

Australia’s oil and gas exploration and production company Tap Oil has agreed to sell an interest in a permit off W. Australia to a private E&P company.

Tap Oil said on Wednesday it was going to sell its 20 percent interest in permit WA-8-L as a part of its strategy to realize value from its non-core asset portfolio. The company added that the asset would be sold for a cash consideration of $800,000.

The permit WA-8-L is a production license that covers an area of 161 square kilometers over two graticular blocks and is located in the north-eastern part of the Dampier Sub-basin of the Northern Carnarvon Basin.

The license contains the Talisman and Amulet oil fields. The Amulet field lies approximately 30 kilometers south of the Santos-operated Finucane South and Fletcher oil field FPSO unit.

The permit was awarded in 1988 for 21 years during which time the Talisman field has been developed. The Talisman field was abandoned in 1992, since then there has been no further production in the permit. The Amulet oil field was discovered within the permit in May 2006 with the drilling of three Amulet wells.

Tap Oil said that the sale was conditional on NOPTA approving the transfer of the asset to the purchaser and the purchaser complying with any requirement of the operating agreement, and any other regulatory requirement.

If these conditions are not satisfied by the purchaser within 90 days, the agreement will lapse.

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