WHL Responds to Tap withdrawal

THE ROADHOUSE BOWSER: WHL Energy (ASX: WHN) responded to the announcement from Tap Oil (ASX: TAP) that the latter has elected not to proceed with an option to acquire an initial 10 per cent interest in the WHL Energy-operated VIC/P67 permit off the coast of Victoria.

Under the terms of the 18 September 2013 agreement, Tap had the option to acquire a 10 per cent interest in VIC/P67 by paying up to US$2.95 million of the Year Two commitment seismic costs in the permit.

WHL Energy also acknowledged Tap reported that final seismic cost amounting to US$2,778,887 remains payable on 31 March 2015 and that upon payment Tap will have no further obligation or liability in respect of permit VIC/P67.

“While it is disappointing that Tap will not be joining us in progressing the large gas potential contained in VIC/P67, recent press articles regarding the capital constraints of major operators in the Otway Basin has meant the decision was not surprising,” WHL Energy managing director David Rowbottam said in the company’s announcement to the Australian Securities Exchange.

“The impact of the current market dynamics has meant delays in efforts to further farm out the VIC/P67 opportunity while Tap’s current focus is clearly on the Manora oilfield development offshore Thailand.

“We would like to thank Tap for their support and their professional contribution to the significant progress that has been made in upgrading the potential of VIC/P67, which remains a very valuable asset.”

WHL Energy holds 100 per cent equity in Exploration Permit VIC/P67 in the offshore Otway Basin, situated approximately off the Victorian coastline.

VIC/P67 contains the undeveloped La Bella gas field in proximity to the Victorian gas market, and several nearby exploration prospects.

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