Since announcing their on market buy back of up to 10 million shares in May this year, West Perth-based oil and gas production and exploration company Tap Oil Ltd has bought almost 600,000, at a cost of just over $1 million.
In a statement, the company indicated that the buy back was part of a capital management initiative designed to optimise the Company's capital structure and enhance returns to shareholders.
Shares will continue to be bought back until June 2, 2007.
The announcement is printed below:
Tap Oil Limited ("Company"), as part of the on-market share buy-back of up to 10,000,000 shares announced on 18 May 2006, has purchased 599,633 shares in the Company. The share buy-back is part of a capital management initiative designed to optimise the Company's capital structure and enhance returns to shareholders. Up to 9,400,367 further shares may be purchased prior to 2 June 2007.
All shares purchased under the buy-back will be immediately cancelled, reducing the total number of shares on issue and proportionately increasing all shareholders' interests in the Company and return on equity. As a result of the acquisition and cancellation of the abovementioned shares under the buy-back, the Company's total issued ordinary capital is now 157,443,274 shares.
