Vancouver, B.C. – August 14, 2017 – TAG Oil Ltd. (the “Company” or “TAG Oil”) (TSX: TAO and OTCQX: TAOIF) is pleased to report first quarter results for the fiscal year ending March 31, 2018. Most notably, the Company successfully drilled and flow tested the Cheal-E8 exploration well on its 70% working interest and operated Cheal East permit (PEP 54877) located in the Taranaki Basin of New Zealand, which has since been tied-in to TAG Oil’s existing infrastructure as a permanent producer. Further, the Company is also pleased to announce that it has successfully drilled and cased the Cheal-D1 exploration well, with testing operations currently underway and results expected within the next two weeks.
TAG Oil’s aim is to continue to remain disciplined and focused on its core producing operations, and to reduce variable production and administrative costs wherever possible. TAG Oil is also continuing with its efforts to increase its production and reserves base, as well as assessing strategic acquisition and farm-in opportunities in New Zealand and Australia.
Toby Pierce, TAG Oil’s CEO, commented “Q1 2018 has been a very busy quarter for TAG Oil. Our focus has been on execution – drilling Cheal-E8 and converting Cheal-A2 to a water injector. In addition, we had a complete plant and pipeline shutdown at the beginning of April for 8 days, which kept our New Zealand team busy, but they have done an excellent job of executing the project safely and efficiently. Oil prices were 14% weaker than we had forecast during the quarter, however it appears that it may be strengthening as we progress through Q2 2018. In any event, we continue to closely monitor oil prices and our capital position in order to manage liquidity and capital budgets. We are prepared to trim our budgets, where appropriate, if it is required to preserve the balance sheet. Finally, farm-out discussions are continuing with regards to two of our prospects – the Pukatea well and the Cardiff acreage.”
Q1 2018 FINANCIAL AND OPERATING HIGHLIGHTS
RECENT DEVELOPMENTS / LOOKING AHEAD
On August 5, 2017, the Company completed drilling operations on the Cheal-D1 exploration well, which is located at the Cheal East permit, and was cased for production testing. An 18 m section of high quality gas and condensate bearing sands will be tested over the next two weeks with results expected in August.
TAG Oil and its joint venture partner, Melbana Energy Ltd., have approved drilling the Pukatea-1 well, located onshore in New Zealand within the Puka permit (PEP 51153), which is tentatively planned to commence in Q4 2018. The Pukatea-1 well is planned to be drilled from the existing production pad at the Puka permit where three other wells have previously been drilled.
The acquisition of 70 km2 of 3D seismic across TAG Oil’s 100% owned PL17, located in Australia’s Surat Basin, is nearly complete with processing set to begin in September 2017. The Company expects to begin using this 3D seismic data in early Q4 2018 to design an exploitation, appraisal and exploration drilling program on its Bennett and Leichhardt fields.
Going forward, TAG Oil will continue to work towards achieving the following:
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a development-stage international oil and gas producer 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 is debt-free and currently has 85,282,252 shares outstanding.
For further information:
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, including the Cheal East permit, the Puka permit and PL17, 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 Oil and 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 Oil 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.
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.