Tap Oil inks production sharing contract for Myanmar block

8/27/2015

WEST PERTH, Australia -- Tap Oil has formalized its entry into Myanmar following the signing of the production sharing contract (PSC) for the shallow water Block M-7 in the Moattama basin. Tap holds a 95% participating interest in the M-7 Block and has assumed operatorship.

Tap Energy (M7) Pte. Ltd, and its local joint venture participant, Smart E&P International Company Ltd., signed the PSC with Myanmar Oil and Gas Enterprise at an official ceremony in Nay Pyi Taw, on Aug. 26. Under the executed PSC, the joint venture partners have agreed to undertake an 18 month Environmental and Social Impact Assessment and Study Period, followed by an option to proceed to a three-year commitment exploration work program.

Tap anticipates that it will spend approximately $2.75 million on the M-7 Block up to and including the Study Period, which has a minimum expenditure requirement of $2 million. Tap may spend more before and during the Study Period.

Troy Hayden, Tap's managing director and CEO, said, “The inclusion of Block M-7 in Tap’s portfolio is in line with the company’s Southeast Asian growth strategy, anchored by the flagship Manora Oil Development that has been in production for nine months.”

The 13,372 km2 M-7 Block is located in Myanmar’s most prolific offshore hydrocarbon province, the Moattama basin, which has existing production from a number of multi-tcf offshore fields. Block M-7 is 160 km east of the 6.5 Tcf Yadana gas field, and 70 km northeast of the 1.5 Tcf Zawtika gas field.

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