As stated in the 31 December 2014 quarterly report of Tap Oil Limited and its financial results released on 27 February 2015, Tap is reviewing its business and asset base in order to respond to the recent change in market conditions in the oil and gas sector and to maximise value for all shareholders.

The receipt of the proposal from Mr Chatchai Yenbamroong (a Thai entrepreneur and substantial Tap shareholder) to replace three of Tap's four existing directors with four of his nominees has provided a catalyst for Tap to offer alternative options to Mr Yenbamroong's proposal, which if successful would result in a change in control of the Company without Tap shareholders being offered any control premium.

The strategic review will consider a number of divestment options for each asset, including the Company's flagship Manora Oil Development as well as the Company's non-core Australian portfolio. In this regard, Tap notes that such transactions (if successfully completed) should enable the Company to reduce its debt and potentially also allow for the payment of fully franked dividends to shareholders.

Tags: Tap Oil Limited