The Perth-headquartered producer and explorer reported a net loss of $280,000 for the first half of 2007, compared to net profit of $10.9 million in the same period last year. The company’s revenue was also down 12.7% to $39.9 million from $48.1 million for the same period last year.

Production for the half year was lower at 789,000 barrels of oil equivalent, compared to 866,000boe for the six months to June 2006.

The company says it is on track for full year production of about 1.55MMboe.

Managing director Paul Underwood said revenues had been negatively affected by the strong Australian dollar as much of the company’s oil was sold for US dollars.

He said a fall in production and operating revenues for the half year would be offset by an expected increase in production and revenues from the expansion of the Woollybutt oil field in the Carnarvon Basin, in which Tap has a 15% stake. In addition, development of the Maitland gas discovery in the Harriet area would boost Tap’s gas reserves by as much as 60 petajoules while also delivering the company 1 million barrels of condensate.

Underwood also said strong cash reserves of $100 million will enable the company to aggressively pursue growth through both exploration and acquisitions.

Tap spent about $16 million on exploration during the six months to June 30, and will lift that to $35 million in the second half for several high-value, moderate risk-development and exploration activities in Western Australia and the Philippines, according to Underwood.

Its long-awaited, high-impact Marley gas prospect, to be drilled in the Harriet area in the fourth quarter, could yield up 1 trillion cubic feet of gas, according to Underwood, 12% of which would be Tap’s.

Several new joint venture projects were under evaluation, according to Underwood.