Tap Oil Limited is pleased to announce it has executed a USD $50 million field development facility for the Manora Oil Development in Thailand and a AUD $20 million corporate facility, both with the Commonwealth Bank of Australia (ASX:CBA).
The USD $50 million field development facility will be used solely to fund the Manora Oil Development. The facility has a tenor of four years, however, it is expected to be repaid within the first 24 months of commencement of production from Manora. The facility includes usual terms andconditions and is forecast to be drawn down in the second half of 2013.
The AUD $20 million corporate facility is split between a AUD $10 million revolving facility available for general corporate purposes and AUD $10 million as a contingency in the event of any Manora cost overruns.
The Commonwealth Bank is strongly committed to the energy and natural resources sectors and has specialised oil & gas teams based in Australia, the UK, Asia and the US. CBA has financed resources projects in developing countries, including in Azerbaijan, Brazil, Chile, China, Ghana, Indonesia, Laos, Papua New Guinea and Thailand.
The debt facilities, along with Tap’s current cash balance of AUD $84 million and its ongoing revenue from its third party gas contracts, provides the Company with considerable flexibility in funding the development at Manora, undertaking exploration activities and taking advantage of other opportunities as they arise.
First production from the Manora Oil Development is expected in early 2014, and the project remains on target, with key contracts awarded, and construction having commenced on the platform and floating storage and offloading vessel (FSO).
Tap’s Managing Director/CEO, Troy Hayden said:
“Securing the debt facilities marks another significant milestone in the development of the Manora oil field.
The Manora facility will fund a significant portion of the capital required for the Manora Oil Development while the corporate facility provides Tap with funding flexibility and certainty.
We are currently working closely with the project Operator to ensure the Manora Oil Development continues to progress on budget and on schedule for first oil in early 2014.”
