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TAG Oil promotes science

Once again, TAG Oil is sponsoring the Taranaki Primary Schools Science Fair, which was held September 28 and 29 in New Plymouth. Our operations manager, Tim Gray, was chosen to be one of the judges for the fair. This year, students were asked to show how they think energy could be created in the future by way of creating a model and presentation that demonstrates production of efficient, safe energy sources for the future population. Congratulation to all the kids who participated. Enjoy the pictures below and be sure to…

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The O&G production story in charts

National Bank Financial (NBF) Energy’s Before the Bell newsletter provided a couple interesting charts, perfectly titled: Houston…we have a problem. And we well may. Where is the big, promised production growth?  No really, where is it? Another interesting and complementary chart is the Seasonal Texas Oil Well Completions graph.  As you can see, 2017 is well below even the 2016 completion rate, although NBF advises they have seen data of DUC inventory in shale, which suggests that as prices rise there could be more completed wells and their associated volumes.…

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Ten more years of North Sea oil and gas?

A recent oil industry study reveals that with just 10% of recoverable oil and gas left in the United Kingdom, the UK may soon have to import all their oil and gas needs. The study estimates recoverable UK reserves will last another decade. University of Edinburgh scientists who carried out the study also did an analysis of the UK’s potential for fracking, finding it to be minimal. In fact, fracking wouldn’t be economically feasible due to poor geology (low-quality source rocks) and dense population centers, which impede the thousands of…

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Seismic survey complete!

Benjamin Franklin once said, “An investment in knowledge pays the best interest,” and TAG Oil takes that advice to heart. Most recently, we’ve been gathering detailed information on TAG’s Australia Permit, PL17, located in Queensland’s Surat Basin. The Brigalow Seismic Survey of PL17, which was recently completed by Geokinetics (Australasia) Pty Ltd., covered ~95km2 surface coverage of 3D, and a ~6.6km 2D tie line. The survey party visited the area in early July to speak with landholders and gain an understanding of the specific requirements of each property. For example, different…

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The charts don’t lie

The market reaction to the recent inventory numbers have been interpreted as bullish, as the charts and stats from financial services firm Raymond James show.  Although crude oil prices have been stuck between $45 and $50 for the past month, the response to the IEA increasing their demand forecast (among other events), shows that crude continues to respond well, despite some resistance. Everyone is looking for the bottom price in energy, but the above chart shows the energy sector is close to a break out from a conservative down-trend line…

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Storm clouds for US shale

Who’s daring enough to short several U.S. shale oil and gas drillers? Why it’s short-selling expert Jim Chanos, president and founder of Kynikos Associates, of course. Mr. Chanos spoke at the Delivering Alpha Conference last week and gave insight on why he believes the Wall Street opinion on US shale and gas stocks is faulty.  His reasons: Certain valuation metrics in which Wall Street relies on facade issues with the business model in the US shale industry, leaves drillers with smaller returns than investor expectations. Accounting methods that some Wall…

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Aramco loads up its leased storage facilities in Japan

A fully loaded crude carrier landed in Okinawa on Wednesday with 1.89 barrels of crude, which it will add to the 6.29 million barrels already stored, for a total of 8.18 million barrels. Japan receives about one third of their crude imports from Saudi Arabia. And in 2011, Japan and Aramco created the storage agreement which gives the Saudis free storage in exchange for Japan getting first rights to the stockpiles in the event of an emergency.  “Coincidentally,” Aramco recently announced that rates will soon be raised for the Arab…

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In Australia, gas is booming

As TAG Oil completes its seismic data acquisition on the company’s gas-prospective, Australian asset PL17, reports are that Australian gas exports are on the rise. And where’s the majority of Australia’s gas production? In the East Coast, where PL17 is located in the Surat Basin. Australia’s natural gas output in 2017 is up a whopping 27% from 2016, as both LNG and domestic gas production have increased in the second quarter. For Q4 2017, LNG exports have risen 19.4% and domestic gas production 11.9%. Dr. Graeme Bethune, CEO of energy…

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Harvey storms through Texas and the oil industry

Tropical Storm Harvey is definitely wreaking havoc, and doing some epic damage: to homes and businesses, families, pets, farmland and livestock, and also to the gas and oil industry. The storm has hit refineries hard, causing gasoline and oil prices to change…in opposite directions. It has been reported that refineries with output of roughly 4.4 million barrels per day have been stopped, which represents about 24% of U.S. production. With the refineries down, crude demand has slowed, causing prices to drop…but also causing the widest spread between West Texas Intermediate…

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The Bulls take to the field

What is New Zealand’s favorite pastime? Rugby! By far. So TAG Oil was happy to be able to bring some players from the Port Taranaki Bulls to Ngarere School, a rural, seven-teacher grade school located near TAG’s Cheal A Permit The lucky kids from Ngarere School spent time with the players talking, asking questions, playing on the field, and learning some skills – rugby and otherwise TAG believes strongly in community support, and we offer it in many ways, both obvious and not so obvious, wherever we can, From the…

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