International oil and gas producer and explorer, TAG Oil has filed its financial results for the 2009 fiscal year ending March 31, 2009.
TAG recorded $4.9 million in production revenue for the year, which is a 19% increase when compared to the $4.1 million of production revenue recorded during the 2008 fiscal year. The net loss recorded for the year was $18.87 million, primarily as a result of a $19.27 million write-down to the Company's 30.5% owned Cheal oil discovery in the Taranaki Basin of New Zealand. The write-down at Cheal can be attributed to drilling results of the A6 and A6ST wells and the use of a more conservative recovery factor in reserve estimates. The Company ended the 2009 fiscal year debt-free, cash-flow positive and with $7.39 million in cash and $7.87 million in working capital.
TAG Oil CEO, Garth Johnson commented, "I am extremely pleased with the financial performance of TAG during the 2009 fiscal year, which has paved the way for our future growth. Some of the noteworthy financial achievements include an increase in working capital, increased production revenue for the second straight year and further cost-reduction activities, which include decreasing production costs per barrel sold and reducing general and administrative costs by more than $500,000. In addition, the Company bought back and cancelled 8% of the Company's stock."
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