TAG Oil Strengthens Position in Taranaki Basin - 4Q Report
Monday, March 01, 2010
New Zealand oil and gas producer TAG Oil Ltd. announced its financial results andthe completion of several strategic acquisitions. These acquisitions firmly positionTAG with 100% control of all assets, including near-term production and reservegrowth potential at producing properties, low-risk exploration prospects in theTaranaki discovery fairway, and a 2.4 million-acre unconventional fractured oil shalefrontier. Highlights for the third quarter of TAG's 2010 fiscal year: - Production revenue of $3,452,359 (nine months: $4,712,532) recorded, comparedto $671,355 in Q2; - Net income of $336,239, compared to a net loss of $1.9 million in Q2; - Production of 23,314 net barrels of oil, compared to 9,607 barrels in Q2; - 33,023 net barrels of oil sold for the quarter, compared to 8,728 barrels of oil soldin Q2; - Production costs reduced by 38% to $21 per barrel compared to $34 per barrel forthe comparable period last year; - Increased cash and cash equivalents, after all acquisition costs, from $6.5 millionto $9.4 million, and ended the quarter with working capital of $10.5 million and nodebt; - Completed the acquisition of the remaining interest in the Cheal oil and gas field; - Completed the business combination with Trans-Orient Petroleum Ltd. onDecember 16, 2009; - Completed the acquisition of the remaining exploration interests in PEP 38748,located within the Taranaki Basin production fairway; - Awarded a 100% interest in a 61,900-acre permit extension located in thesouthern portion of the onshore East Coast Basin covering the Kawakawa oil-shaleprospect. TAG Oil CEO Garth Johnson commented, "TAG's third quarter wasundoubtedly a significant milestone in the Company's history. Closing severaltransformational acquisitions has set the stage for significant growth. We are proudof these achievements, and management now looks forward to focusing attention onexploitation of the significant upside potential within TAG's acreage." <h2>Operations Update</h2> The first phase of optimization work at the Cheal oil and gas field will begin in March
Source: TAG Oil Ltd.