Vancouver, B.C. – April 7, 2016 – TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) is pleased to report preliminary results for its fiscal 2016 year ending March 31, 2016 as follows:
TAG is in the process of finalizing its capital budget for fiscal year 2017, which will be funded entirely by forecasted cash flow and existing working capital. Focus over the last few months has been on preparations to increase production through the implementation a water-flood program at each of our Cheal oil pools and the reactivation of several shut-in wells. Results are expected in late June on these efforts. Further information on the FY2017 capital budget spend will be provided by the Company in due course.
Toby Pierce, CEO commented, “Despite the challenges of low oil prices, TAG managed to meet or exceed all of its revised guidance targets for fiscal year 2016 including exiting at March 31st with over $15 million in cash and cash equivalents. The team did an excellent job keeping the production and operations running smoothly while focusing on reducing costs and capital spending. During fiscal year 2017, TAG will continue to focus on minimizing costs and maintaining lean operations while working to grow production and acquire assets to set the Company up to significantly benefit from a return to higher oil prices.”
TAG Oil Ltd.
TAG Oil Ltd. (https://tagoil.com/) is a development-stage Australasian focussed oil and gas production and exploration company with extensive operations and production infrastructure in the Taranaki Basin region of New Zealand. As one of New Zealand’s leading operators, TAG is positioned for reserve-based growth with high impact exploration upside in the lightly explored Taranaki discovery fairway. As a low cost, high netback oil and gas producer, TAG is debt-free and reinvests its cash flow into development opportunities and exploration drilling along trend with the Company’s existing production.
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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.
Cautionary Note Regarding Forward-Looking Statements:
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. Such statements can be generally, but not always, be identified by words such as “expects”, “plans”, “anticipates”, “intends”, “estimates”, “forecasts”, “guidance”, “schedules”, “prepares”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. All estimates and statements with respect to 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, availability of adequate funding, volatility of commodity prices, 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 release, and there is no representation by TAG Oil that the actual results realized in the future would 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.