TAP 0.00% 7.8¢ tap oil limited

At the end of June Tap had some $45 million in cash (US$31.54...

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    At the end of June Tap had some $45 million in cash (US$31.54 million) with the pile growing each month, in the June quarter by a net A$3 million a month. The three wells they recently drilled look like increasing daily production by at least 50% so monthly net revenue could exceed A$4 million a month for at least the rest of this year and further extend the life of the mature Manora oil field.

    Given the development wells could not have cost Tap much more than US$1 million (no fracking needed given the near 30% porosity of the 300 sands) CY 19 looks like being a bonanza year after last years first NPAT of A$13.25 million up 190% on 2017 and the first profit since 2009.

    Questions must now be asked what are they going to do with the cash, declare a dividend would be a nice gesture to long serving shareholders. As the cash pile grows and with the near field exploration opportunities you have to wonder whether Risco will come again with a new takeover bid. Have to be a bit more than 11.0 cents you would think.

    Don't quite understand why the company is so out of favour!

    Third well report is due any time as is June half year report which should be a beauty.
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