SYDNEY, Australia -- Tap Oil Ltd. plans to invest up to A$35 million ($28.4 million) in the second half of 2007 in the pursuit of a number of high-value development and exploration activities. In a mid-year report to investors, the company said it would develop the southern lobe of the Woollybutt field off the northwest coast, drill the Maitland discovery and Marley prospect in the same area, and identify targets for drilling in permit SC-41 in the Sulu Sea off the Philippines.
The company posted an A$9.4 million ($7.6 million) gross profit for the half year ending June 30 on operating revenues of A$39.8 million ($32.3 million) for the same period.
Paul Underwood, managing director and CEO, said Tap's strong balance sheet, with cash reserves of more than A$100 million ($81.3 million) would provide Tap with the financial flexibility required to aggressively pursue growth through both exploration and acquisitions.
"Over the past 12 months, we have overhauled the company's senior management team and have undertaken a considerable change in the way we approach the risk/reward balance of exploration," Underwood said. "Implementing such changes takes time, but the cycle is now complete, and Tap is set to deliver company changing events in both the short and medium term."
In addition to planned exploration and development activities, Underwood said, the remainder of the year will see the company focus on, "assessing our portfolio of assets, relevant consolidation of the company's existing operations and the development of a number of new ventures that could deliver a step change in value for our shareholders.
"The next six to 12 months will be a very exciting period for the company and we are confident that the strategies we are pursuing will deliver real value for our shareholders," Underwood said.