Tap Oil has reached a final investment decision on the Manora oil development located in the Gulf of Thailand.
The company, through its subsidiary Tap Energy (Thailand), owns a 30% stake in Concession G1/48, where the Manora oil field is located.
Troy Hayden, Tap Oil managing director and CEO, said the Manora oil development is expected to generate significant future cash flow for the company during the development phase.
Mubadala Petroleum affiliate Pearl Oil is the operator of the oil field with a 40% equity stake while Pearl Energy owns ten percent.
The company will invest $74m in the project which will require an estimated $246m, while $13m will be carried over by Northern Gulf Petroleum, which also has ten percent interest.
The company expects to recover 31 mmbbls gross from the Manora oil field development, which has 2P reserves of 20.2 mmbbls.
"The drilling programme at G1/48 provides exploration upside, with the potential to further consolidate our position in Thailand," said Hayden.
Ten production wells and five injection wells can help in increasing production to an estimated peak rate of 15,000 barrels of oil per day.
First production is expected to be delivered in early 2014; drilling is expected to commence in the second half of 2012 on the concession G1/48.
Image: The development concept is a single well head platform linked to a floating, storage offtake unit with 15 development wells. Photo: Tap Oil.