Tap holds a 30% direct interest in the G1/48 concession. Experienced international operator, Pearl Oil (Amata) Limited, a Mubadala Petroleum affiliate, operates the concession.

Tap reached FID on the Manora Oil Development on 23 July 2012 with first production expected in early 2014. Tap now holds a direct 30% interest in Concession G1/48 through its subsidiary Tap Energy (Thailand) Pty Ltd.

The total project cost is estimated at US$246 million (excluding abandonment), Tap’s share is US$74 million (direct interest) plus a US$13 million carry of NGP.

The development is expected to deliver first production in early 2014, ramping up to an estimated peak rate of 15,000 bopd from 10 production wells and five injection wells. Manora is a low-risk development and the operator has extensive experience in this type of development in Thailand through the successful Jasmine project.

The development concept will be a single well head platform linked to a Floating, Storage Offtake (FSO) Unit with 15 development wells (10 production wells and five injection wells).

Tap has 2P reserves of 6.1 mmbbls (20.2 mmbbls gross) booked for Manora and expects ultimate recovery of 31.1 mmbbls gross (9.3 mmbbls net to Tap) from the main pay sequence that is the focus of the Field Development Plan, as well as two other oil pay sequences. The additional 3.2 mmbbls (net) will become 2P reserves once the production history confirms the higher recovery factor modeled using the water flood simulation.

Exploration

Tap holds a 30% direct interest in the G1/48 concession and an indirect 30% interest in the G3/48 concession in the northern Gulf of Thailand. These concessions are operated by Pearl.

The Manora discovery in late 2009 opened up a new oil play in the northern Gulf of Thailand. Interpretations of the 1,760 km2 Sattakut 3D seismic survey in G1/48 and G3/48 were completed during 2012.

In G1/48, six prospects have been identified on the western flank of the northern Kra Basin, in similar structural settings to the Manora oil discovery.

During the final quarter of 2012, two wells were drilled in the G1/48 concession. One of these wells is a commitment well. A commitment well is also expected to be drilled in the G3/48 concession.

The Manora-5 exploration well in the G1/48 concession spudded on 5 October and reached final total depth of 2,756 metres on 19 October with no significant evidence of hydrocarbons being encountered. The well cost Tap approximately $3 million (30% participating interest plus 10% NGP carry).

Prior to drilling the Manora-5 exploration well, the key risk identified for success at the prospect was whether it was located on an active hydrocarbon migration path or not. The preliminary post well review indicates the well was a valid test of a four way dip closure. The failure to encounter any significant level of hydrocarbon in the well, despite encountering a thick reservoir section, has confirmed hydrocarbon migration as the key reason for failure.

The second well in the Thailand 2012 exploration drilling campaign is Kinnaree-1, located in the G1/48 concession. The Kinnaree A West prospect is some 15 kilometres north of the existing Manora field. The Kinnaree-1 exploration well will test this prospect and will target a Manora style play to test synrift sands which are the primary hydrocarbon bearing reservoirs in the Manora field. Kinnaree-1 spudded on 25 October 2012.

The Kinnaree A West prospect in the northern Kra Basin is a different style of prospect more akin to the Manora field, and is a mutually exclusive test to the prospect drilled by the Manora-5 exploration well. The results of Manora-5 have not impacted on the potential of the Kinnaree A West prospect.