Tap secures financing for Thai oil project

Tap Oil has secured more than $68 million in debt finance to fund the development of its Manora oil project in Thailand.

Perth-based Tap today said it had secured a $US50 million field development facility and a $A20 million corporate facility, both with the Commonwealth Bank of Australia, to fund the Manora project.

The field development facility has a four-year term, but Tap said it expected to repay it in full within two years.

The $20 million corporate facility is comprised of a $10 million revolving facility for general working capital and $10 million set aside as a contingency for any cost overruns.

Managing director Troy Hayden said securing the finance was a key milestone in the development of the Manora oil field.

First production is expected from the Manora field early next year.

“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,” Mr Hayden said in a statement.

“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.”

At close of trade today, Tap Oil shares were up 0.7 per cent, to finish at 64.5 cents.