TAG Cites Significant Milestones Made During Second Quarter
New Zealand oil and gas producer TAG Oil Ltd. has today filed its interim financial statements and the accompanying management's discussion and analysis for the six months ending September 30, 2009.
TAG Oil CEO Garth Johnson commented, "During the quarter, TAG achieved a number of company-transforming milestones, including closing the agreement to acquire the remaining interests in the Cheal oil discovery. This solidifies our position in the Taranaki Basin and gives TAG the potential to increase production immediately from the current 350 barrels of oil per day, and to increase recovery of reserves through work-over and fracturing, as well as providing ongoing discovery potential with a number of 3D-defined prospects in the surrounding acreage."
- Completed the acquisition of the remaining 69.5% interest in the Cheal oil and gas discovery in October 2009
- Entered into an arrangement agreement to effect a business combination with Trans-Orient Petroleum Ltd. whereby TAG will be the surviving company
- Entered into an agreement to acquire the remaining 66.67% interest in PEP 38748, located within the Taranaki Basin discovery fairway
- Gross production from the Cheal oil field of 64,125 barrels of oil and 59,084 gross barrels sold
- Recorded production revenue of $671,355 for the quarter and $1,260,173 for the first six months of the 2010 fiscal year
- Reduced production costs to $19.82 per barrel produced, compared to $51.51 per barrel for the same period last year
- Terminated the registration of the Company’s common shares under section 12(g) of the Securities Exchange Act of 1934, significantly reducing administrative burdens and costs of being a US reporting company
- Net loss for the quarter $1,910,879 (six months: $2,080,934), resulting primarily from a $1,431,979 non-cash investment loss previously accounted for in comprehensive loss
- Cash and cash equivalents of $6.63 million and working capital of $7.26 million at period end, and no debt
"Further, upon completion of the highly complementary acquisition of Trans-Orient expected in mid-December 2009, TAG will expand its exploration portfolio in New Zealand by more than 2 million acres. This acreage not only contains numerous conventional high-impact prospects, it is a widespread and world-class unconventional fractured oil shale frontier," explained Johnson. "Independent reports by qualified reserves evaluators for Trans-Orient dated September 2007 and September 2008 have estimated prospective resources of over 14 billion barrels of original oil-in-place, based on approximately 10% of Trans-Orient’s land base."
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- TAG Prepares for NZ's Cheal East Field Development with New Pipeline Link (May 27)