Tap Oil chief executive and managing director Troy Hayden. Picture: Mogens Johansen/The West Australian.
Tap Oil chief executive and managing director Troy Hayden. Picture: Mogens Johansen/The West Australian.

UPDATE 2.50pm: Shares in Tap Oil were higher after the company announced a refinancing and expansion of its debt facilities ahead of the start of production at its Manora oil development in the Gulf of Thailand.

Tap said a new $US90 million facility with BNP Paribas would replace a $US50 million development facility and $A20 million corporate facility with Commonwealth Bank.

The company said the new facility would provide enhanced liquidity, flexibility and balance sheet capacity to meet its requirements ahead of the commencement of production from the Manora Oil Development.

Tap expected to repay the four-year facility with 36 months of commencement of production from Manora.

Tap also adjusted the schedule for commencement of production from Manora, announced the rig required to drill the two Manora development wells required for first oil production were now expected to arrive in mid to late July.

Managing director and chief executive Troy Hayden said the BNP facility reflected the stability of expected cash flows from Manora, and would underpin and support the company through a crucial phase of significant value creation.

"The Manora project fundamentals continue to be robust with significant future cash flows expected following first production," he said.

"With the new debt facility, Tap remains fully funded for its share of the Manora development."

Tap holds a 30 per cent stake in the Manora oil development. United Arab Emirates-based Mubadala Petroleum is the project operator.

Shares in Tap were up two cents, or 5 per cent, at 42 cents at the close.

The West Australian

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