Tap Oil Says Zola Prospective Resource Above 2 TCF

Tap Oil Limited (ASX Code: TAP) has reported that RPS Energy Services Pty Limited (RPS) has completed its independent resource evaluation report on the volumetrics of the Greater Zola Structure. This follows the gas discovery on 17 February 2011 at the Zola-1 exploration well in WA-290-P, offshore Carnarvon Basin, Western Australia.

The Greater Zola Structure comprises several fault blocks along the Alpha Arch, south of the Giant Gorgon gas field. A single fault block was tested by Zola-1 (the Zola fault block) and RPS has assigned a mean Contingent Resource of 378 Bcf (range between 209 Bcf to 584 Bcf). The other undrilled fault blocks are classified by RPS as Prospective Resources with varying probabilities of success (POS) ranging from 62% (very low risk) down to 14% (high risk) for some of the smaller outer fault blocks. It should be noted that only three small fault blocks have an assigned POS of less than 30% by RPS. The mean resource estimates and ranges are set out in the table below.

RPS Resource Estimates (October 2011) - 100% Gross Recoverable (Sales Gas)



Tap's managing director and chief executive officer Troy Hayden said: "The RPS report on the Greater Zola Structure confirms resource potential significantly greater than the upper end of our pre-drill estimate of 1-2 Tcf. We will now work through various options for extracting the most value for Tap shareholders from the Zola asset."



Central and Eastern Fault Blocks

In its report, RPS assigned POS of 62% and 58% to the large Central and Eastern Fault Blocks respectively. The high POS are a result of the two fault blocks being contained in a well-defined structural horst, updip from a significant discovery well (Zola-1).

Forward Plan

A new 3D seismic survey was acquired over the permit post-discovery and the processing of this seismic data is expected to be completed by May 2012 with drilling to follow late in 2012.

Located close to existing and developing gas infrastructure, Zola could have multiple potential development options. Any development at Zola could also encompass the overlying Antiope gas discovery which is not included in the above estimates.

Global demand for large assets in favourable locations is currently very strong. Tap has recently received several enquiries from large overseas industry players about Tap's plans for Zola. Furthermore, it is appropriate for a company of Tap's size and funding capabilities to consider monetising an asset like Zola prior to the incurrence of the large scale LNG development costs which are likely required to bring the asset into production.

Tap is confident that it can maximise the value of Zola by monetising the asset on attractive terms at the right time.

Gas Analysis

The volumes in the above table are stated after deducting the non-hydrocarbon gases (CO2 and inerts).

The results of Zola-1 indicate that the CO2 content increases with depth over the three gas bearing sand packages intersected by the well. Over 90% of the mean contingent resource in the Zola fault block has a CO2 and inerts content in the range of 20-30%.

Antiope

Antiope is a shallow gas discovery in the permit. Antiope potential recoverable gas volumes are not included in the above RPS numbers.



RPS Energy Services & PRMS 2007

RPS Energy is an independent consultancy providing a comprehensive range of technical services and economical analysis to the petroleum industry.

The resource information provided above by RPS has been prepared in accordance with the Petroleum Resources Management System (PRMS) 2007 definitions and guidelines.

WA-290-P joint venture participants Tap (Shelfal) Pty Ltd 10.00%, Apache Northwest Pty Ltd (Operator) 30.25%, Santos Offshore Pty Ltd 24.75%, OMV Australia Pty Ltd 20.00%, Nippon Oil Exploration (Dampier) Pty Ltd 15.00%