Tap Oil Ltd. announced plans on March 5 to review its business and asset base in response to the recent change in market conditions in the oil and gas sector and to maximize shareholder value.

The receipt of the proposal from Chatchai Yenbamroong, a Thai entrepreneur and substantial Tap shareholder, to replace three of Tap’s four existing directors with four of his nominees provided a catalyst for Tap to offer other options to Yenbamroong’s proposal, the statement said. An alternative option would result in a change in control of the company without Tap shareholders being offered any control premium.

The review will consider a number of divestment options for each asset, including the flagship Manora Oil Development and Tap’s non-core Australian portfolio. Tap noted that such transactions, if successfully completed, would enable the company to reduce its debt and potentially also allow for the payment of fully franked dividends to shareholders.

Tap appointed Miro Advisors in respect of the Australian asset portfolio divestment options, and Corrs Chambers Westgarth to assist with the strategic review process. The company will keep shareholders advised of any material developments as the strategic review progresses.