Cautionary Note on Website Information
The facts and information provided to users in the pages of the TAG Oil Ltd. (TAG, TAG’s, Company, Company’s) website are for informational purposes only. Users should not rely on stock quotes, investment information, oil and gas prospect estimates, gas market projection, or any other information on this website for any purpose other than for gaining general knowledge about the Company. This information is not intended to be, and should not be construed in any way as part of, an offering or solicitation of securities. No securities commission or other regulatory authority in Canada, the United States or any other country or jurisdiction has in any way passed upon the information contained in these pages.
Some of the information on this website has been provided by external sources. The Company is not responsible for the accuracy, reliability or currency of the information supplied by external sources. Users wishing to rely upon this information should consult directly with the source of the information.
Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of TAG. Such statements can be generally, but not always, identified by words such as “expects”, “plans”, “anticipates”, “intends”, “estimates”, “forecasts”, “schedules”, “prepares”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. All estimates and statements that describe TAG’s operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered petroleum initially-in-place described below, availability of adequate funding, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, 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.
Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG’s most recently filed reports in Canada under NI 51-101, which can be found under TAG’s SEDAR profile at www.sedar.com. TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors change.
TAG Oil has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to “BOEs.” BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The resource estimates in this website, where applicable, are prepared by independent and non-independent qualified reserves evaluators in accordance with NI 51-101 and the COGE Handbook.
Low Estimate is considered to be a conservative estimate of the quantity of the in-place volumes. It is likely that the actual in-place volumes will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the in-place volumes will equal or exceed the low estimate.
Best Estimate is considered to be the best estimate of the in-place volumes that will actually be present. It is equally likely that the actual in-place volumes will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the in-place volumes will equal or exceed the best estimate.
High Estimate is considered to be an optimistic estimate of the in-place volumes. It is unlikely that the actual in-place volumes will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the actual in-place volumes will equal or exceed the high estimate.
Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as “prospective resources,” the remainder as “unrecoverable.”
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. The Company’s future success in exploiting and increasing its current reserve 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 reserves 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 reserves 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.
The significant positive factors that are relevant to the resource estimate are:
- Proven production in close proximity;
- Proven commercial quality reservoirs in close proximity; and
- Oil and gas shows while drilling wells nearby.
The significant negative factors that are relevant to the resource estimate are:
- Tectonically complex geology could compromise seal potential; and
- Seismic attribute mapping in the two, deep, liquids’-rich gas plays can be indicative but not certain in identifying proven resource.
Certain information in this website may constitute “analogous information” as defined in NI 51-101, including, but not limited to, information relating to areas with similar geological characteristics to the lands held by the Company. Such information is derived from a variety of publicly available information from government sources, regulatory agencies, public databases or other industry participants (as at the date stated therein) that the Company believes are predominantly independent in nature. The Company believes this information is relevant as it helps to define the reservoir characteristics in which the Company may hold an interest. The Company is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and in accordance with the COGE Handbook. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by the Company and there is no certainty that the reservoir data and economics information for the lands held by the Company will be similar to the information presented therein. The reader is cautioned that the data relied upon by the Company may be in error and/or may not be analogous to the Company’s land holdings.
Although the Company believes the facts and information regarding stock value, shares, oil and gas acreage and projected oil yields contained in the pages of this website to be correct and attempts to keep this information as current as possible, the Company does not warrant or make any representations as to the accuracy, validity or completeness of any facts or information contained in these pages.
The Company shall not be liable or responsible for any claim or damage, direct or indirect, special or consequential, incurred by the user arising out of the interpretation, reliance upon or other use of the information contained in the pages of this website.
Any hyperlinks to or from this website from or to another website is provided to the user for convenience and informational purposes only. No endorsement of any products, services or opinions is expressed or implied by any information, material or content referred to or included on, or linked from this website. The Company bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links.
Trademarks and Copyright
Certain names, graphics, logos, icons, designs, words, titles or phrases on this website may constitute trade names or trade marks of the Company. The display of any trademark does not imply that a license of any kind to use the trade mark has been granted. All information found in the pages of this website is protected under the copyright laws of Canada and in other countries.
Unless otherwise specified, no user has permission to copy, redistribute, reproduce or republish, in any form, any information found in the pages of this website. Any user who, without authorization, re-transmits, copies or modifies any trade marks may violate federal or common law trade mark and/or copywriter law, and may be subject to legal action.
The products and services described in the pages of the Company website are only offered in jurisdictions where they may be legally offered for sale.
Confidentiality and security of information provided over the Internet is not possible at this time. The Company cannot ensure the privacy and authenticity of any information or correspondence shared over the Internet between it and a user, and will not be responsible for any damages or claims incurred by a user who communicates confidential information to the Company through this website.