Tap Oil Ltd. (ASX: TAP) has formalized its entry to Myanmar after signing a production-sharing contract (PSC) for the shallow-water M-7 Block in the Moattama Basin, the company said in a news release.

Tap holds a 95% participating interest in the M-7 Block and has assumed operatorship.

Tap Energy (M7) Pte. Ltd. and its local joint venture participant, Smart E&P International Co. Ltd., signed the PSC with Myanmar Oil and Gas Enterprise (MOGE) at a ceremony in Nay Pyi Taw on Aug. 26, the release said.

Under the PSC, the JV partners have agreed to undertake an 18-month environmental and social impact assessment and study period, followed by an option to proceed to a three-year commitment exploration work program, according to the release. Tap anticipates that it will spend about $2.75 million on the M-7 Block up to and including the study period, which has a minimum expenditure requirement of $2 million. Tap may spend more before and during the Study Period.

The 13,372 km2 M-7 Block is located in Myanmar’s most prolific offshore hydrocarbon province, the Moattama Basin, Tap Oil said in the release. Block M-7 is 160 km east of the Yadana gas field and 70 km northeast of the Zawtika gas field.

Tap Oil, Myanmar, M7, Moattama Basin, production-sharing contract, PSC