Field news and more

Corporate buybacks at TAG Oil

A healthy flow of corporate buybacks is creating shareholder value. This publicly available chart from https://canadianinsider.com also shows that TAG Oil insiders recognize TAG is undervalued, and are buying shares.

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Historic downturns of WTI Crude Oil

I find this graph interesting for a few reasons. First of all, based on previous oil price crashes, it appears that we’re at the bottom of this current cycle. The only problem I have is that the current oil market remains oversupplied. It will ultimately get absorbed, without a doubt, and although there are a new set of dynamics, this oversupply is only about a quarter of the oversupply of the previous price crashes. It is also interesting to note that whenever oil prices have crashed over the past 50 years,…

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Undervalued deep value stock? Unicorn? Both?

We’re pleased to see TAG’s undervalued stock price getting some common sense insight. Being compared to a unicorn (“…What should we call a stock trading at less than 1.5X cash flow? I would call it a Unicorn, because such low valuations are not supposed to exist. This article will not only prove the existence of 3 Unicorns, but show that this mythological low valuation category actually includes some well run growth stocks”) inspired our resident designer to sketch our new mascot. Says Seeking Alpha contributor Richard Lejeune: “There are several reasons…

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Production Cost Winner: TAG Oil ranks in the top tier

There’s been a lot of debate regarding the future of oil prices (see March 19 post for one example), and everyone has their own theory about how long the low prices will last. One obvious item that informs cost, is the pure cost of production, which brings us to this graph showing what it costs to produce a barrel of oil around the world.  The lowest is Middle East production at US$27 per barrel. Heavy oil is about $47, Offshore Russia is $50, North American shale is $65, etc. Add another…

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BNN oil price interview with former Shell President (video)

A must-view for anyone interested in fluctuating oil prices. Former Shell President John Hofmeister gives his opinion on why oil will be back trading at $80 by year-end. 

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On executives as shareholders

I admire corporate executives who have significant investments in their own companies. In addition to my career in the petroleum sector, I began investing in junior oil companies when I was 21.  Even from that early age, when I’d consider companies for potential investment I would do—and still do—plenty of research: reading annual reports, analyst reports, and articles on the firm. Many times I end up reading positive articles where owning shares is popularly considered a no-brainer decision. After my research however, I’m frequently surprised to find that executives and authors do not themselves own shares…

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A personal shareholder profile

Here is one of TAG’s longest and most supportive shareholders, my father, Lucanio Guidi. He came to Canada by boat from a small village in the hills of Tuscany in 1952. He was 18 years old, and was determined to succeed and create a better life for his family. Arriving in Canada with his skills as a fine furniture maker and $8 in his pocket, he kissed the ground and prayed to someday own his own home.   Although he is long retired, Lou (as he became known) became one of…

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Welcome to the Board, Brad Holland

We’re pleased to have Brad Holland, a highly experienced oil and gas engineer, join the TAG Oil Board of Directors on March 1, 2015. He will replace Dr. Douglas Ellenor who has resigned for personal reasons. Mr. Holland holds a B.Sc. Chemical Engineering degree from the University of Alberta and has more than 35 years of experience and expertise in the planning, design and project management of oil and gas industry projects, including 18 years as Senior Project Engineer for Saudi Aramco, a global leader in oil and gas. Over the course of…

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A note from founder and chairman Alex Guidi

Along with TAG directors Ken Vidalin and Doug Ellenor, I recently had the opportunity to spend time on the ground in New Zealand with our VP of Operations Shane Hamnett. During our working tours, Shane pointed out some low-expenditure, fine-tuning opportunities to increase production at TAG’s production facility. In this low oil-price environment, it’s especially important to keep optimizing operations from top to bottom.  This picture is of us in front of the Cheal-E1 well, which is still flowing naturally after more than a year, and is the best performing well in…

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