Australia’s Tap Oil’s revenue are up 72% for the quarter ending in September despite a 37% slide in production, but the company said it is on target to generate revenue at close to full capacity by the end of 2008.
Tap posted higher revenue of A$22.2 million (US$14.8 million) for the three month period compared to the previous quarter due to higher oil and gas prices, while total production fell 69,924 barrels of oil equivalent to 118,196 boe. “During the quarter, Tap Oil restored the majority of its production base, with successful tie-in of Woollybutt South in July, restoring gas re-sales from John Brookes in August and progress to repairs at the Harriet venture facilities damaged by the Varanus Island incident,” the company’s chief executive said today in the quarterly report. He added that Tap’s cash position is starting to reflect the stronger production performance. At the end of September Tap had net cash of A$47 million, but this had improved to over A$60 million by late October. Looking to the future the company is in the midst of shooting wall-to-wall 3D seismic across Western Australian permit WA-351-P, which it says has liquefied natural gas- gas scale potential, reinforced by Hess’ three recent gas discoveries in the adjacent permit. Tap is also starting an exploration programme over Block M in Brunei as well as expects the Fletcher-3 appraisal well in Santos operated permit WA-191-P to be spudded next month. The well is designed to evaluate the oil discovery made by the Fletcher-1 and 2 well in 2007. Taps’ participation in Fletcher-3 has increased from 8.2% to 10.9333%.
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