Australia’s Tap Oil has restructured its $25million debt facility with its lenders as it presses ahead with a new exploration well in the Gulf of Thailand.
As part of the above amended facility agreement with BNP Paribas and Siam Commercial Bank, Tap has hedged approximately 700,000 barrels of forecast Manora production from April
2016 to February 2017 at an average swap price of $42.
The company is in the process of raising a minimum of $5 million in additional capital through a rights issue
At current oil prices, Tap said it expects the outstanding balance of the BNP Facility at to be US$9 million by the end of the year and the cash position to be approximately $7 million.
Meanwhile the company said it is to go ahead with participation in the Sri Trang-1 exploration well in the in the Northern Gulf of Thailand.
Sri Trang-1 is close to the Manora oil development – Tap’s flagship project. Drilling is expected to begin next month.
The outcome of the well will determine any likely development scenario, including a production platform is tied back to the Manora Production facility.
Tap said the drilling cost of the Sri Trang-1 well will be offset against the G1/48 Reservation Area fee (US$3.8 million) paid to the Department of Mineral Fuels (DMF) by the Joint Venture of the
Providing the well comes in on budget, Tap will not be required to contribute any further cash for the well. Tap’s share of the expected well cost is US$1.02 million.