Tap Oil increases Carnavon Basin stake

Tap Oil has trumped Woodside Energy's efforts to buy into the WA-351-P natural gas exploration permit in the Carnarvon Basin, after it exercised its pre-emptive right to acquire an additional 20 per cent interest.

Joint venture participant Roc Oil announced to the ASX December 20 it had agreed to sell its 20 per cent stake in the permit to Woodside Energy for $US15.75 million ($15.82 million).

But Tap told the ASX today it had exercised its pre-emptive rights, part of the joint venture agreement, to increase its interest in the strategic permit.

Tap will acquire the additional participating interest from Roc Oil on the same terms of the Woodside sale, increasing Tap's holding in the exploration permit from 25 per cent up to 45 per cent.

BHP Billiton Petroleum will retain a 55 per cent interest and is the project operator.

Tap's acquisition remains subject to government approval.

Tap managing director Troy Hayden said WA-351-P was one of the firm's three priority assets, alongside interests held in Thailand and Ghana.

"Roc Oil's sale agreement with Woodside Energy provided us with a unique opportunity to exercise our pre-emptive right and improve the leverage in one of our most prospective projects," Mr Hayden said.

"WA-351-P offers significant leverage to large potential gas resources at a time when there is competition between several LNG players to find gas for their expansion plans.

"Moving to 45% provides Tap with a large enough stake in the project to have several options available in the near future, including the ability to farm down to an incoming party for a promoted interest in future drilling programs and still retain a material stake in the permit."