30/01/2009 - 09:48

Tap Oil to ramp up to full revenue soon

30/01/2009 - 09:48

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West Perth-based Tap Oil says it expects to be generating revenue at near full capacity in the coming months following the Varanus Island incident, as quarterly production jumps 42 per cent.

Tap Oil to ramp up to full revenue soon

West Perth-based Tap Oil says it expects to be generating revenue at near full capacity in the coming months following the Varanus Island incident, as quarterly production jumps 42 per cent.

In its December quarterly report released today, the company said it recorded strong oil production at Woollybutt and strong gas sales from the nearby John Brookes field during the period.

Total production reached 167,972 barrels of oil equivalent, up from the previous quarter's 118,196boe.

Total oil and gas revenue over the period fell 44 per cent to $12.4 million, down from $22.2 million due to a lower oil price that fell from an average of $A135 per barrel to $86/bbl.

Over the period the company re-started sales from the Harriet joint venture, which was affected by the Varanus Island gas explosion in June last year.

"Repairs are still underway and Tap expects to be generating revenue at close to full capacity in the coming months," chief executive Peter Stickland said.

The company has so far received $10.4 million for interim business interruption insurance from the Varanus Island incident.

At the end of the quarter, the company had net cash of $53.8 million and no debt.

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