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Tap Oil Limited
ABN 89 068 572 341
19 December 2011
Level 1, 47 Colin Street
West Perth WA 6005
Australia
T: +61 8 9485 1000
F: +61 8 9485 1060
E: info@tapoil.com.au
www.tapoil.com.au
The Company Announcements Platform
Australian Securities Exchange
Exchange Centre
20 Bond Street
SYDNEY NSW 2000
RIG SLOT CONFIRMED FOR THE HIGH-IMPACT TALLAGANDA-1 WELL
Tap Oil Limited (Tap) is pleased to announce that the WA-351-P joint venture has approved the
budget to drill the Tallaganda-1 well in WA-351-P. Furthermore, the Operator, BHP Billiton
Petroleum Pty Ltd (BHP Billiton), has now secured the Atwood Eagle semi-submersible drilling rig
to drill the well and expects to commence well operations at Tallaganda-1 in the first quarter of
2012.
The Tallaganda-1 prospect straddles both the WA-351-P and WA-335-P permits and will test the
gas potential of sandstones in the prolific Triassic age, Mungaroo Formation, in a well defined horst
block as imaged by high quality modern 3D seismic data. This is the primary play type of the gas
prolific North West Shelf. Tap estimates the Tallaganda structure has a prospective resource
range of 0.8-2 Tcf (P90 to P10 estimates) with more than 50% of these volumes in WA-351-P
(mean prospective resource estimate of 0.8 Tcf in WA-351-P).
Tallaganda-1 is assessed as having a greater than 60% chance of success. This high chance of
success for an exploration well is due to the strong seismic amplitudes within closure and good
AVO support which are indicative of reservoir and gas. The well will be drilled as a vertical well in
a water depth of 1,141 m and is expected to take 37 days (trouble free) to drill.
Following Tap’s farmout of 25% of its participating interest in the permit to BHP Billiton Petroleum
(North West Shelf) Pty Ltd earlier this year, Tap’s cost for the well will be carried up to a cap of $10
million (net to Tap).
Tap’s Managing Director/CEO, Mr Troy Hayden, said:
“By securing a rig working locally for drilling the Tallaganda-1 well it allows a clear timeframe
to drill this highly anticipated gas well.
Success at Tallaganda-1 will also give greater certainty to the rest of the 2 - 3 Tcf of Triassic
potential identified on the permit.”
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For personal use only
Tallaganda-1 Location Map
Background
The Operator completed a detailed assessment of the plays, prospects and leads in the permit in
2010 including the 3D seismic acquired in 2008. Over 10 leads and prospects were defined in the
Triassic Mungaroo Formation which Tap estimates has a combined mean potential of 2-3 Tcf (gross
recoverable, unrisked) of natural gas. A number of these targets, including Tallaganda-1, have an
estimated probability of success over 50%.
Additional leads have been identified in WA-351-P in the Jurassic and Early Cretaceous, both of
which are productive elsewhere in the Carnarvon Basin. Current indications are that this shallower
potential is larger, but higher risk, than the Triassic in this permit. Further work will be done on these
objectives.
The high chance of success in this permit is reinforced by Hess reporting 13 gas discoveries from
16 exploration wells drilled to date in the adjacent WA-390-P permit, immediately north of
WA-351-P.
In January 2011, Tap exercised its pre-emptive right under the joint operating agreement to acquire
an additional 20% interest in WA-351-P for a cash consideration of US$15.75 million, increasing
Tap’s holding in the exploration permit from 25% to 45%.
In May 2011, Tap announced the farm out of 25% of its participating interest in WA-351-P to Japan
Australia LNG (MIMI) Pty Ltd (MIMI) for a cash consideration of US$30.154 million plus a carry on
Tap’s 20% equity through the drilling of Tallaganda-1 (up to an agreed cap of US$10 million).
In June 2011, BHP Billiton Petroleum (North West Shelf) Pty Ltd, Tap’s existing joint venture
partner, exercised its right of pre-emption to acquire Tap’s 25% participating interest in WA-351-P
on the same terms and conditions as agreed upon with MIMI, providing further evidence of the value
of this highly prospective permit. This transfer was approved by the Department of Mines and
Petroleum on 9 December 2011.
The proximity of WA-351-P to many large-scale liquefied natural gas (LNG) projects being
developed should provide the joint venture with many options for the commercialisation of any gas
discoveries.
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WA-351-P Joint Venture Participants
For personal use only
BHP Billiton Petroleum Pty Ltd (Operator)
BHP Billiton Petroleum (Northwest Shelf) Pty Ltd
Tap (Shelfal) Pty Ltd
Enquiries to:
Troy Hayden
David Rich
Telephone:
Email:
Website:
80.00%
20.00%
Managing Director/CEO
Chief Financial Officer
+61 8 9485 1000
info@tapoil.com.au
www.tapoil.com.au
Person compiling information about hydrocarbons
Pursuant to the requirements of the ASX Listing Rules, the reported hydrocarbon estimates contained in this document are
based on information compiled by the Company's Exploration Manager, Mr Milton Schmedje B.Sc (Hons) who has more
than 25 years relevant experience in the petroleum industry. Mr Schmedje is a full-time employee of the Company. and
has consented to the inclusion of such information in this report in the form and context in which it appears.
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