Vancouver, B.C. – August 14, 2018 – TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) is pleased to report its first quarter results for the interim period ending June 30, 2018. The Company was successful in securing a revolving credit facility of up to US$10,000,000 with a large New Zealand based lender, as well as increasing its revenue by 53% along with a 67% increase in operating netbacks to $44.16 per boe for the quarter. Production over the month of April to date is above guidance with a current gross daily average rate of 1,309 boe/d (80% oil).
Toby Pierce, TAG Oil’s CEO, commented “Operationally, TAG Oil had a very good quarter with over $5.1 million in cash flow from operating activities and a working capital position of $5.8 million at the end of Q1/2019. The Company commenced a campaign in July that will involve multiple workovers and water injector conversions, which may have a positive impact on our production in upcoming quarters. TAG Oil continues to focus on growing its cash flow, increasing its production and strengthening its balance sheet over the near to medium term.”
Q1 2019 FINANCIAL AND OPERATING HIGHLIGHTS
TAG Oil is currently completing stage two of the PEP 57065 (Waitoriki) work commitments, which includes 20km2of 2D seismic acquisition, 15km2of 3D seismic reprocessing and subsequent AVO analysis. The 2D seismic acquisition will potentially define deeper permit prospectivity and future drilling locations, particularly across two Kapuni Group leads identified on recently reprocessed 3D seismic. Completion of the 2D seismic acquisition occurred in April 2018 and final processed data was received in July 2018. Interpretation of the new 2D seismic and 3D seismic reprocessed extension is currently underway.
As part of the overall waterflood development project, the previously shut-in Cheal-E4 well was identified as a future water injector for the Cheal-E site waterflood project. Injection conversion has been completed with additional perforations added to the MM4 zone. Water injection commenced in August 2018 at 400 bbl/d and the conversion is expected to provide pressure support and sweep oil towards the Cheal-E1 well, potentially resulting in additional oil recovery and extending the Cheal-E site’s field life.
Going forward, management will continue to employ its disciplined approach and remain focused on production, appraisal and exploration opportunities, and TAG Oil will continue to work towards achieving the following goals:
About TAG Oil Ltd.
TAG Oil (https://tagoil.com/) is an international oil and gas explorer with established high netback production, development and exploration assets, including production infrastructure in New Zealand and Australia. TAG Oil is poised for significant reserve and production growth with several oil and gas fields under development and high-impact exploration in proven oil and gas fairways. TAG Oil currently has 85,282,252 shares outstanding.
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Cautionary Note Regarding Forward-Looking Statements and Disclaimer
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. Such statements can generally, but not always, be 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 the Company’s plans relating to 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.
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 Oiland its independent evaluator have made, including TAG Oil’s most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG Oil’s SEDAR profile at www.sedar.com. TAG Oilundertakes 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.
Disclosure provided herein in respect of boe (barrels of oil equivalent) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.