28 per share to institutional investors, raising approximately $23 million.

"This capital raising will allow the company to more comfortably fund existing new developments, enhancements to Varanus Island facilities and its ongoing exploration program," Tap Oil said.

The South Plato and Gibson Oil Fields, discovered earlier this year, are expected to come into production by mid-2002 at a combined rate of around of 10,000 barrels per day. The Woollybutt Oil Field development is proceeding with first oil expected in early 2003, at a rate of around 35,000 bpd.

The Varanus Island liquids handling facility is expected to be completed in early 2002, at which time production from the Simpson (and other Harriet fields) will be increased to optimum levels.

Tap Oil also announced this week that the Harriet JV has entered into a 25 year gas supply contract with Burrup Fertilisers Pty Ltd for its proposed ammonia plant to be constructed on the Burrup Peninsular of Western Australia.

Tap has been working hard at acquiring working interests in a number of exploration permits including WA-8-L (Talisman block) 20%, WA-149-P 10%, EP-320 50% and TP/18 50%. Tap has also exercised its pre-emptive rights on a transaction between Apache Energy Limited and Australian Worldwide Exploration Limited whereby it will acquire a further 40% in EP 364, taking the company's interest to 90% in this block and a further 25% in EP 363. Tap management considers that these permits are quality additions to its Carnarvon Basin portfolio and have good potential for exploration success.