TAG Oil Ltd. (TSXV: TAO and OTCQX: TAOIF) (“TAG Oil” or the “Company”) is pleased to report the filing of its financial results for the fiscal year ending March 31, 2023. A copy of TAG Oil’s financial statements, management discussion and analysis, and annual information form for its most recently completed financial year are available on SEDAR (www.sedar.com) and on the Company’s website.
Highlights over the period include that the Company had C$19.5 million (March 31, 2022: C$13.3 million) in cash and cash equivalents and C$21.6 million (March 31, 2022: C$15.4 million) in working capital and has no debt. TAG Oil continues to manage its costs and allocate the necessary resources towards its business development efforts in Egypt and other areas in the Middle East and North Africa (“MENA”) region.
Operationally, the Company’s preliminary BED 1-7 vertical well test of the Abu-Roash “F” (“ARF”) reservoir in the Badr Oil Field (“BED-1”) was successful and achieved the Company’s objectives for the well. Throughout the process, TAG Oil’s team gained significant knowledge about operations in the Western Desert of Egypt that will be utilized for the first horizontal well, BED4-T100 (“T100”). Since the BED 1-7 well started production cumulative oil production from the well to date is over 6,000 barrels of 23-degree API oil.
Following completion of the BED 1-7 well test operations, the Company was able to secure a suitable drilling rig for the T100 in BED-1 horizontal well, which is designed with a multi-stage fracture stimulation completion of the ARF formation. The Company has since commenced mobilizing the rig to the T100 location at BED-1 and the well is scheduled to commence drilling in August. The Company will provide detailed drilling and completion updates in due course.
The Company is also pleased to announce the promotion of four members of the Company’s highly experienced technical and procurement team to TAG Oil’s corporate group, which will serve to strengthen operations Egypt and the broader MENA region. TAG Oil also announces the grant of 1,800,000 stock options that are exercisable for a period of five years at a price of C$0.70 per share to various staff members, and certain officers and directors.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com) is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For further information:
Toby Pierce, Chief Executive Officer
Phone: 1 604 609 3355
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of TAG Oil. All estimates and statements that describe the Company’s operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary materially from the information provided in this release, and there is no representation by TAG Oil that the actual results realized in the future will be the same in whole or in part as those presented herein. TAG Oil undertakes no obligation, except as otherwise required by law, to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors change.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. The Company’s future success in exploiting and increasing its current resource base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that the Company’s future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if the Company encounters unforeseen geological conditions. The Company is subject to uncertainties related to the proximity of any resources that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such resources may be found. Adverse climatic conditions at such properties may also hinder the Company’s ability to carry on exploration or production activities continuously throughout any given year.
This press release includes cumulative production rates for a certain well over short period of time. Short term production rates are preliminary, subject to a high degree of predictive uncertainty, and not determinative of the rates at which those or other wells will continue to produce and thereafter decline. Short term test rates are not necessarily indicative of long-term well or reservoir performance or of ultimate recovery. Production over a longer period will experience natural declines, which can be high and may not be consistent over a longer period. Actual results will differ from those realized during an initial production period and the differences may be material.
References to “oil” in this press release include crude oil and field condensate.