USA: Tap Oil Sells Stake in Harriet JV

Tap Oil Completes Sale of Tap (Harriet) Pty Ltd

Tap Oil announced that it has completed the sale of its wholly owned subsidiary, Tap (Harriet) Pty Ltd, to a subsidiary of Apache Corporation.

The sale was first announced to the ASX by Tap on 13 February 2012. Tap (Harriet) Pty Ltd holds a 12.2229% interest in the Harriet Joint Venture (HJV) as well as a 10% interest in WA-45-R, WA-46-R and a 20% interest in WA-334-P.

The effective date of the transaction is 1 January 2012.

With the sale completing, Tap has now received the US$10 million and all liabilities relating to the HJV have now been transferred. This includes liability for the abandonment of the fields and facilities, for which Tap had provisioned $28 million, and the two legal actions currently outstanding:

  1. Gas contract dispute with Burrup Fertilisers; and
  2. Alcoa proceedings.

Tap will retain its interests in the third party gas business. This business will generate approximately $30 million of revenue per year until the end of 2016.

LNG World News Staff, May 1, 2012