In what is seen as a fairly rare event for a junior Australian energy company, the Board of Tap Oil Limited (ASX:TAP) has approved the payment of a maiden dividend.
The dividend of A$0.025 per share (A$2.5 cents per share), will be fully franked.
Executive Chairman, Chris Newton, said that in deciding to approve the dividend, the Board considered:
- The US$30.885 million of cash at hand (including Tap’s share of JV cash) at 30 September 2019.
- The US$31.54 million of cash and cash equivalents and US$36.876 million of working capital reported in Tap’s audited Half Year Report at 30 June 2019.
- The continuing cash generative oil production from Tap’s 30% working interest in the Manora Oil Field in G1/ 48, Offshore Gulf of Thailand.
- Tap’s profitability as shown in the 2018 Annual Report and in the Half Year Report at 30 June 2019.
- Tap’s future funding needs to execute its Manora focused reinvestment strategy.
- Tap’s franking credit balance.
- Tap’s strategy to deliver value from its portfolio.
This dividend of A$0.025 per share totals A$10.64 million (US$7.29 million) based on the 425.5 million shares currently on issue,” Mr Newton said.
After recently completing the sale of its Australian and New Zealand oil and gas portfolios, Tap has turned its focus on its producing offshore Thailand assets.
The company is currently drilling the Yothaka East-1 exploration well in the G1/48 concession Manora Production License in the Northern Gulf of Thailand where it holds a 30% interest.