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Tap Oil continues to reject takeover bid on back of Manora oilfield success

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By Danica Cullinane - 
Tap Oil ASX reject takeover bid Manora oilfield success
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Backed by recent appraisal success at its 30%-owned Manora Oilfield in the Thai Gulf, Tap Oil (ASX: TAP) is continuing to knock back a takeover bid by Singapore’s Risco Energy.

The Thailand-focused oil junior today announced the Manora-8ST1 appraisal well encountered multiple oil-bearing zones with total net oil pay of 307 feet (93.57m).

This includes an 86-feet pay in the main objective 490-60 sands, as well as new oil discoveries made in the 300 and 500 series sands.

“Good porosity, pressure and permeability were encountered in the new 300 and 500 sands, similar to that found in other Manora Oilfield wells at those levels,” Tap reported.

The company said these new sands are considered to be new contingent resources in the Manora Oilfield and will be incorporated in an updated reserves and resources statement.

A cement plug has been set to abandon the open hole section of Manora-8ST1, with the rig scheduled to move to the offshore platform to commence a two-well development drilling program.

The positive results from the 500 series sands are expected to be developed by one of the development wells, MNA-20, as per the pre-drill plan, Tap stated.

Tap holds a 30% stake in the Manora oilfield, located in the G1/48 concession in the northern Gulf of Thailand. The project operator and 60% owner is Abu Dhabi’s Mubadala Petroleum, while Northern Gulf Petroleum holds the remaining 10% interest.

Risco proposal

Singaporean energy company Risco Energy Investments (SEA) Limited, a 25% shareholder of Tap, is currently proposing a 7c-per-share takeover offer for the company.

Last month, Tap lodged its target’s statement in response to the on-market bid with independent directors recommending shareholders reject the offer.

In today’s market announcement, Tap continued to advise shareholders to take no action as new information is expected to be released prior to Risco’s offer closing in early July.

This includes initial results from the current Manora Oilfield drilling campaign, as well as an independent expert’s report examining whether the offer is fair and reasonable and taking into account the results from the recent Manora-8 and Manora-8ST1 wells.

Tap shares were up 11.11% to A$0.08 by early afternoon trade.