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Tap Oil (ASX:TAP) says it has started production at its Manora oil development in the northern gulf of Thailand. The start of production has returned the company to “producer status” following a two year hiatus.
Tap Oil (ASX:TAP) says it has started production at its Manora oil development in the northern gulf of Thailand. The start of production has returned the company to “producer status” following a two year hiatus.
According to the press release:
Production has commenced from two wells. As at 4:00pm AWST yesterday the Operator, Mubadala Petroleum, reported that flow has been brought online from the two wells, and is being progressively ramped-up from an initial combined rate of 2,200 barrels per day (gross). Start-up went safely and without incident. Flow will commence to the FSO once production passes 5,000 barrels per day (gross). It is anticipated the platform will ramp up to peak production of 15,000 barrels per day (4,500 barrels per day net to Tap) during the first quarter of 2015.
Troy Hayden, managing director and CEO, said:
“The return to production constitutes a watershed event for Tap. It repositions the company as a mid-tier producer, it is expected to generate significant cash flow and to broaden the company’s investor appeal. This forecast transformation in the company’s cash flow opens up a range of options which are being actively considered, including capital management (particularly utilising the large franking credit balance) and reinvestment opportunities. All opportunities are assessed with a strict commercial and financial return focus
Click here to read the Tap Oil Limited (ASX:TAP) press release