Tap plans to double up

Listed Aussie explorer Tap Oil has revealed plans to double everything - from petroleum reserves and production, to market capitalisation - in the next three years.
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Managing director Paul Underwood told Tap’s annual meeting in Perth on Friday that changes were in the wind for the company and its shareholders. “Our goal is to double everything,” he said.

Tap was now at a point of record earnings performance with a strong cash position totalling about A$50 million. In future it would be involved in some 20-plus wells per year on bigger and higher equity targets

TAP had ongoing production revenues from the Western Australian Woollybutt and Harriett fields, plus, from mid-2004, the onshore Taranaki Kahili field. Woollybutt had produced 10 million barrels of oil and 15 million barrels remained. The Scalybutt-1 appraisal well, west of Wollybutt-2, was planned for June.

Tap had set a $A25 million exploration budget and a A$20-25 million appraisal and development budget for the year. It also had a number of near-term production opportunities in Harriet, Monet, Kadinski, Bambra; and lots of prospects near existing infrastructure in Airlie, Taunton, Cyrano, Boojum and Jabberwocky.

In New Zealand up to six onshore Taranaki wells should be drilled - Kakariki, Hihi, Honeysuckle, Supplejack, Miromiro, and possibly wells in PEP 38744 and 745. As well, in offshore Canterbury licence PEP 38259, the Galleon South well - which had the potential to contain 1.2 tcf of gas and 240 million barrels of condensate - should be drilled.

Company chairman John Mumford said he doubted if Tap’s exploration profile was fully appreciated by investors. He believed Tap’s shares were presently undervalued, considering its successful, steady strategy of building cashflow and its diversified portfolio in a number of highly regarded areas,. “Tap is moving to greater risk only as it builds greater cash flow.”

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