Field news and more

Low Excitement, High Value: Workover Update

TAG continues to focus on low risk, low capital activities that create incremental production increases across the greater Cheal assets. These may not be as exciting as new exploration, but they keep the oil, gas, and revenue flowing. Workover updates across Greater Cheal assets Since the September update, we’ve wrapped up work on A12 and B5 and have good news to report from the workover on B8, BH1, and B10. Even better, all work was completed ahead of schedule, under budget, and without incident.  A12 Update The rod pump installed…

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Stratford Agricultural & Pastoral Association Show

For more than 100 years, Taranaki residents of all ages have flocked to the Stratford A&P showgrounds under the mountain to enjoy the annual agricultural show and its wide range of attractions. With an impressive lineup of livestock on display, as well as hands-on opportunities for kids to mingle with a variety of small animals, there is something for everyone to appreciate and enjoy. Exhibitors of cattle, horses and pigs are invited to compete against some of the country’s top-bred animals for prize money and recognition. For children, there is…

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Dairy farmer talks about TAG Oil partnership

In the business section of www.stuff.co.nz (Stuff is a New Zealand-based news site), Taranaki dairy farmer Jane O’Neil talked about leasing 1.5% of her dairy farmlands for oil wells: TAG OIl’s Cheal E well, to be exact. As quoted in the interview: “I was given a detailed explanation of the drilling process, including diagrams on how oil is drilled, how wells are sealed, and their safety and environmental practices. It was a fascinating experience as I had no knowledge of how oil is extracted from the ground.” Upon TAG reaching out…

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The oil price-slump culprit

While the dynamics of the oil and gas business are never simple, it’s fairly easy to identify the primary culprit in the current oil price slump: fast growing production out of North America, particularly light oil in the US from the shale revolution.  Production was up almost a million barrels a day each of the last three years. However what goes up, must come down, and here we are down in the trough. That cyclical reality also sets the stage for a  recovery in oil prices.  Production in shale oil wells declines very quickly in their first…

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Workover report from the Taranaki Basin

Here’s an update on TAG’s workover campaign to perform maintenance, upgrades to artificial lift, and routine repairs. Not only is this work we commit to on an ongoing basis to maximize safety and production, in this time of low oil pricing, it makes good business sense to focus on low-risk, low-capital, incremental production increases. It may not be as exciting as new exploration, but it keeps the oil, gas, and revenue flowing. Workover highlights across Greater Cheal assets: Cheal A12 Well Cheal A12 produces from the Urenui formation in the…

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TAG Oil at the RIU Good Oil Conference

TAG Oil CEO Toby Pierce presented at the 2015 RIU Good Oil Conference earlier this month in Fremantle, Western Australia, just outside of Perth.  The aim of the conference, the most popular conference in Australia for the mid-tier and junior sector of the oil and gas market, is to bring oil and gas companies from Australia and New Zealand together with the investment community. The conference featured presentations from the leaders of the area’s emerging oil and gas companies on recent developments and new discoveries, plus an outline of future plans. Here’s a link to…

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Debt and interest: the real beasts of burden

Surplus crude has been wreaking havoc on oil prices since mid last year. Not only did OPEC remove its production ceiling (next meeting, December 2015, stay tuned), but U.S. shale producers increased America’s production by a whopping 30+ percent last year. The crude oil price decline has since snatched away millions from crude producers, in particular, U.S. shale producers. And it’s led to ballooning debt and debilitating interest payments, which chokes off the cash influx shale oil wells need for continued production because of their relatively short life spans. According to Bloomberg…

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Volatility humor

To help everyone get through these volatile times with their sense of humor intact…..

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Financially secure to wait out low oil prices

A recent analyst report accurately highlights where we at TAG Oil feel we sit amidst our industry’s current turmoil. The fact that we remain debt free with $26.1 million of positive working capital, and that we’re generating positive cash flow even in this low oil price environment, reflects the company’s stability and long-term positioning. That means despite low oil prices, TAG Oil does not need to raise additional capital to fund its current or future operations. We can continue to weather the low oil price environment and will adjust capital…

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Geology Rocks!

It was a fulfilling and engaging week of learning as 17 lucky students and four teachers got an in-the-field perspective of why Geology Rocks. The program, run by the Hawkes Bay Branch of the Royal Society, harnessed local educational resources such as the National Aquarium, the Holt Planetarium, Faraday Centre and Napier’s Museum to foster student interest in geology, and to help teachers become ambassadors for geology and science learning. From all accounts it was a big hit, and TAG Oil was proud to help sponsor this valuable educational program.…

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