Tap Oil : Commodity Hedge Program

ASX ANNOUNCEMENT	Tap Oil Limited
ABN 89 068 572 341
	Level 2,190 St George's Terrace
27 November 2020	Perth WA 6000
Australia
ASX:TAP	T: [phone]
	F: [phone]

E: [e-mail]

www.tapoil.com.au

Commodity Hedge Program

Tap Oil Limited (Tap or the Company) advises that it has entered into further commodity hedge contracts with BP Singapore Pte Limited (BPS) to cover the scheduled January 2021, February 2021, and March 2021 Manora crude oil liftings.

Details regarding the additional (Second Hedge Tranche) Quarter one 2021 crude oil hedges with BPS are as follows: -

• 25,000 bbls of swaps in January 2021 at a fixed Dubai crude oil price of US$46.40/bbl
• 20,000 bbls of swaps in February 2021 at a fixed Dubai crude oil price of US$46.40/bbl
• 20,000 bbls of swaps in March 2021 at a fixed Dubai crude oil price of US$46.40/bbl

Total Q1 2021 Hedges now in place are tabulated below:

Tap's Executive Chairman, Mr Chris Newton said "With oil market sentiment moving positively in the last week, the Tap Board has taken the opportunity to mitigate against downside oil price movement and further protect Q1 2021 cashflows. Q1 2021 is now 61% hedged at an average Dubai price of US$43.96 per barrel. Manora crude oil has been sold at a premium to Dubai crude averaged over Q1 2021. 39% of contracted Q1 2021 Manora crude oil lifting will remain unhedged and provide Tap shareholders with exposure to any further upward price movements over the next 4 months."

Hedging has been implemented against Dubai crude, the reference against which Manora crude is priced. 2020 Year to date Dubai has traded at a US$0.20 / bbl premium to Brent when Manora crude was lifted.

The November 2020 Manora crude oil lifting for 299,977 barrels, (89,993 barrels net to Tap) was lifted on 6 November 2020 and will be priced off November Dubai Platts with revenue to be received in early December 2020. The next lifting is scheduled between 4 - 6 January 2021. The diagram below updates actual and forecast lifting volumes, hedge positions and realised post hedge prices.

Authorised by the Board of Tap Oil Limited

Investor enquiries

Chris Newton	Derrick Wan
Executive Chairman	Commercial Manager
Phone: [phone]	Phone: [phone]

338844