Tap Oil begins Sri Trang-1 exploration drilling in Gulf of Thailand

Tap Oil has commenced drilling the Sri Trang-1 exploration well in the Northern Gulf of Thailand (Tap 30% interest).

Location/Proposed Depth

The Sri Trang-1 exploration well is located in the Reservation Area of the G1/48 concession in the Gulf of Thailand approximately 18 kilometres north northeast of the Manora oil development.

The well is being drilled in 40 metres of water and will be drilled to approximately 2,590 metres measured depth. The well is expected to take 10 days on a trouble free dry hole basis.

The well objective is to evaluate the primary Middle Miocene lacustrine sands target with secondary targets of Late Miocene fluvial sands. The Middle Miocene lacustrine sands target is the main reservoir level at the Manora Oil Field. A valid test of the primary objective Middle Miocene sands is essential as it will validate the hydrocarbon prospectivity of the Northern Kra basin and de-risk dependent prospects immediately to the West of Sri Trang-1.

The outcome of the well will determine any likely development scenario, including a scenario where a production platform is tied back to the Manora Production facility.

Budget

The drilling cost of the Sri Trang-1 well will be offset against the G1/48 Reservation Area fee (~US$3.8 million) paid to the Thai Department of Mineral Fuels by the Joint Venture of the Reservation Area in the G1/48 concession. Providing the well comes in on budget, Tap will not be required to contribute any further cash for the well. Tap’s share of the expected well cost is US$1.02 million.

Progress

Mubadala Petroleum, Operator of the G1/48 Reservation Area concession has advised that at 17:30 hrs WST the Atwood Orca jackup drilling unit spudded the Sri Trang-1 exploration well.

During the period from 17:30 hrs WST 17 May 2016 to 07:00 hrs WST 18 May 2016, the well was drilled to a depth of 435.3 metres measured depth.

Forward Plan

The forward plan for the Sri Trang-1 well is to set and cement the 9 5/8 inch casing prior to drilling ahead to the planned total depth of 2,590 metres measured depth. Tap’s next expected announcement is upon completion of drilling.

Thailand 2016 Exploration Well

Location: Gulf of Thailand

Concession: G1/48 Reservation Area

Type: Exploration Well

Drill Rig Atwood Orca

Water Depth 40.8 metres

Concession Partners (G1/48)

MP G1 (Thailand) Limited (Operator) 60%

Northern Gulf Petroleum Pte Ltd* 10%

Tap Energy (Thailand) Pty Ltd 30%