TAG Oil Ltd. Increases Exploration Interests in Taranaki Basin
Dec 11 14
TAG Oil Ltd. announced that New Zealand Petroleum and Minerals has awarded the company 100% interest in two new onshore Taranaki Basin permits: Petroleum Exploration Permit 57065 and Petroleum Exploration Permit 57063. Both permits, which add a combined 36,781 acres to TAG's Taranaki Basin exploration portfolio, are situated in a prolific oil and gas production fairway in close proximity to producing oil and gas fields. Together with the Company's existing permits, TAG now operates ten exploration and production permits in the Taranaki Basin, and a total of sixteen permits including a 40% interest in shallow water offshore Taranaki as well as interests in the East Coast and Canterbury Basins. This new acreage is strategic to TAG while also being highly complementary to TAG's existing producing operations, production infrastructure and pipeline network, enabling the Company to commercialize future wells in an expeditious manner. More importantly, TAG's new acreage, which has existing 2D and 3D seismic coverage, expands the scope and potential size of the Company's successful Mt. Messenger and Urenui Formation drilling program, as well as providing potential for additional deep, high-impact leads that can be analysed over coming years. The Sidewinder North acreage (14,726 acres) borders and likely extends TAG's known Sidewinder oil and gas discovery play area as the permit contains the SuppleJack-1 oil and gas discovery made by TAG in 2006, providing an indication of the future follow on discovery potential within this acreage. The Waiiti permit (22,055 acres), situated in the northern area of the Taranaki Basin, offers the Company the opportunity to explore for both shallow Miocene oil and deep Eocene condensate-rich gas. A prior operator encountered significant elevated gas and oil shows while drilling the historical Pukearuhe-1 well within this new TAG Permit. Waiiti is an intriguing area of the Taranaki Basin in close proximity to the successful Pohokura (offshore) and Mangahewa (onshore) producing fields directly to the west of TAG's new acreage. The geology of this northern area of the basin is interpreted to have many similarities to the Manutahi/Kauri oil and gas fields in the south part of the basin.
TAG Oil Announces Drilling Results of Cheal-E-JV-6 well
Nov 25 14
TAG Oil Ltd. reported that the Cheal-E-JV-6 well (TAG 70%), located in the onshore Taranaki Basin of New Zealand has been successfully drilled to a total depth of 1,939 meters (6,360 feet). The Cheal-E6 step out well is interpreted to have intersected over 9 meters (29.5 feet) of net oil and gas bearing sands in the Mt. Messenger Formation, which was the main objective of the well. Cheal-E6 is being completed as a potential oil well with production testing to begin this week and, if economic, will be immediately commercialized through TAG's 100%-owned production infrastructure. Based on the excellent performance and continued encouraging results of the Cheal-E site area, TAG will now proceed to drill the Cheal-E7 step out well (TAG 100%).
TAG Oil Ltd. Reports Unaudited Consolidated Production and Earnings Results for the Second Quarter and Six Months Ended September 30, 2014; Reports Production Results for the Month of October 2014; Provides Earnings Guidance for the Fiscal Year 2015
Nov 14 14
TAG Oil Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended September 30, 2014. Average net daily production increased for the quarter ended September 30, 2014 to 1,845 boe/d (78% oil) from 1,750 boe/d (74% oil) for the quarter ended June 30, 2014, and 1,486 boe/d (72% oil) for the quarter ended March 31, 2014, compared to 2,100 boe/d a year ago. Record net oil production volumes achieved, averaging 1,437 bbl/d (+408 boe of gas) for the quarter.
Combined daily production volumes for the six months were 1,798 boe/d compared to 2,227 boe/d a year ago.
For the quarter, total revenue was CAD 16,179,000, compared to CAD 15,885,000 a year ago. Net income before tax was CAD 5,147,000, compared to CAD 2,412,000 a year ago. Diluted income per share was CAD 0.08 compared to CAD 0.04 a year ago. Capital expenditure was CAD 11,126,000, compared to CAD 14,466,000 a year ago. Operating cash flow was CAD 9,702,000, compared to CAD 8,562,000 a year ago.
Revenue for the first six months was CAD 31.8 million from CAD 30.6 million over the same period last year. Cash flow provided from operating activities increased by 6% for the first six months of fiscal year 2015 to CAD 15.0 million from CAD 14.2 million over the same period last year. Net income before taxes increased by 49% for the first six months of fiscal year 2015 to CAD 8.8 million from CAD 5.9 million over the same period last year.
The company announced production growth averaging 1,990 (76% oil), boe/d in October 2014.
As announced in May 2014, the company’s capital budget for fiscal year 2015 was CAD 60 million; funded by forecasted cash flow of CAD 40 million for the year and working capital on hand. The company has amended the capital budget to reduce spending to CAD 43 million for the 2015 fiscal by extending the timing of certain higher risk work commitments to fiscal year 2016/17 in order to maintain a strong balance sheet while continuing to build production as previously guided.