Tap Oil gives up exploration activities in Sulu Sea

Australian firm Tap Oil Ltd. said on Thursday that it gave up its right to an exploration block service contract (SC) 41 located in the Sulu Sea after it failed to secure a farmout agreement. "In SC 41, Tap Oil was not able to secure an appropriate farmout due in part to the tight time frame of the work program," said Tap Oil's CEO Peter Stickland. In its March exploration program update, Tap Oil noted that the Sandakan basin, which is covered by SC 41, has prospects of 100 to 200 million barrels of recoverable oil. SC 41 is the only exploration project of Tap Oil in the Philippines. Stickland said Tap Oil seeks to manage its exploration investments in a rigorous and disciplined manner. "In 2009, Tap Oil identified two projects — the Zola prospect in WA-290-P [located in Western Australia] and SC 41, where a farmout was necessary before Tap Oil would commit to drilling," Stickland said. Tap Oil is continuing its extensive exploration program including near-term drilling in Brunei and Australia's Carnarvon and Bass basins. Tap Oil is an independent oil and gas exploration and production company with interests in Australia and Southeast Asia. Other companies included in the SC 41 consortium are Salamander Energy and local partners, which include Southwest Resources Inc., Philodrill Corp., Philex Mining Corp., Oriental Petroleum and Minerals Corp., Universal Robina Corp., South China Resources Inc., and Anglo Philippine Holding Corp. —JE/OMG, GMANews.TV