|By PR Newswire||
|November 15, 2012 08:01 AM EST||
Company achieves 62% increase in production revenue
New infrastructure build on track plus four new wells drilled with excellent results.
VANCOUVER, Nov. 15, 2012 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), today announced its financial results for the quarter ended September 2012.
Q2-2013 and Recent Operating Highlights
- Production revenue increased 62% to $21.44 million for the six months ended September 30, 2012, compared to $13.23 million in the comparable period last year;
- Production revenue increased to $9.62 million during Q2-2013 compared to $7.38 million for Q2-2012;
- Net operating cash inflow increased to $5.81 million (six months: $14.98 million) for the quarter compared to $5.34 million (six months: $7.11) for Q2-2012;
- TAG sold 68,178 (six months: 170,058) barrels of oil during quarter at an average price of $109.97 per barrel (six months: $108.41 per barrel);
- TAG sold 80,592 boe (six months: 112,728 boe) of gas during the quarter at an average price of $4.38 per mcf (six months: $4.44 per mcf);
- Infrastructure build ontrack to allow production of 3000 boe p/d of behind pipe production to come online;
- Successfully drilled Cheal-A12, bringing the total to 19 straight successful wells in Taranaki;
- Currently drilling Cheal-B8 with 26 meters of net pay being identified on electric logs to date;
- Acquired three high-impact frontier exploration permits located in the East Coast and Canterbury Basins of New Zealand;
- All work carried out to the highest health and safety and environmental standards.
Liquidity and Financial Summary
At the date of this report, TAG is debt free with approximately $86 million in cash on the balance sheet. Production revenue for the quarter was $9.62 million (six months: $21.44 million) compared to $7.38 million (six months: $13.23 million) for the comparable quarter last year and the Company generated a net profit for the quarter of $1.20 million (six months: $6.76 million) before deducting $1,499,954 (six months: $2,340,675) for non-cash share-based compensation.
TAG currently has 59,773,923 common shares outstanding and 63,481,186 common shares outstanding on a fully diluted basis.
Taranaki Basin Operations
TAG finished Q2-2013 with excellent drilling results, and an ongoing Taranaki program underway with electric logs indicating economic oil-and-gas pay in recent drilling as follows:
- Cheal-C4 recorded a total of 17.5 meters of pay
- Cheal-A11 recorded a total of 30 meters of pay
- Cheal-A12 recorded a total of 23 meters of pay
- Cheal-B8 recorded a total of 26 meters of pay to date with drilling continuing at the reporting date
Summary of TAG well status
|Cheal A||A10, A11||A1, A3, A7, A8, A9, A12|
|Cheal B||BH-1, B3, B5||B1, B2, B4ST, B6, B7, B8|
|Cheal C||C1, C2, C3, C4*|
|Sidewinder||SW1, SW2, SW3, SW4|
* Drilled and awaiting/undergoing production test
TAG has drilled 19 consecutive successful wells in Taranaki, which have necessitated the infrastructure upgrades now underway, and expected to be complete on schedule by March 31, 2013.
TAG's infrastructure project will allow the Company to become completely self-sufficient in producing, processing and marketing all oil and gas. Once completed, TAG can initiate production on all oil and gas wells that have been drilled but are not yet producing (behind pipe) and any additional production arising from further successful wells drilled.
Cheal Oil and Gas Field - 100% Interest
Successful drilling throughout 2011/2012 and now Q2-2013 within the Cheal field has resulted in a material increase to the Company's forecasts. TAG expects continued growth through the following activity:
Continued exploration and development drilling: pre-emptive right on the
Nova-1 drilling rig ensures access to services;
Infrastructure enhancement project underway at Cheal ensures maximum
value is achieved from behind-pipe production and new discoveries
making TAG completely self-sufficient for oil and gas production,
processing and marketing;
Cheal's new planned pipeline now has all landowner agreements signed and
consent has been received with construction now underway;
Drilling the liquids-rich deep gas target such as Cardiff and Hellfire;
Cardiff has an independent resource potential estimated by Sproule
International of 214.5 Bcf and 12.8 million barrels of associated
condensate and the Company anticipates drilling Cardiff in Q2 of fiscal
- Completion of Cheal's secondary recovery scheme, which is forecast to cost-effectively increase recovery factors within the Cheal A pool's proved and probable oil reserves.
Sidewinder Oil and Gas Field - 100% Interest
On June 6, 2012, TAG received consent to drill four new wells within the Sidewinder permit, which was subsequently appealed by one opposing party. Progress has been made and TAG expects the appeal to be dismissed and drilling operations to resume as planned. A successful resolution is expected in Q3 of fiscal 2013.
TAG has planned a new multi-well drilling program using its proprietary 3D seismic, combined with new 2D seismic that was acquired during fiscal 2012. The Sidewinder Permit is lightly explored, where only 2.5% of TAG's acreage has been drilled to date. Significant exploration potential remain in both shallow and deeper targets within the Permit area. Near-term operations are as follows:
Drill a minimum of four new exploration wells;
- Drill Sidewinder's deeper liquids-rich gas targets such as the Hellfire prospect where TAG's technical team has used 3D seismic to interpret Hellfire as a large high-impact prospect with significant resource potential.
East Coast Basin Operations
The farmout agreement with Apache Corp in Q1 2012 was completed to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand. Apache Corp has agreed to spend up to $100 million to conduct a multi-phased exploration, appraisal and potential development program within TAG's East Coast Basin Petroleum Exploration Permits PEP 38348, PEP 38349 and PEP 50940 (the "Permits").
TAG and Apache Corp have completed their 2D seismic program within the Permits and the TAG / Apache JV are continuing an extensive consultation process relating to the upcoming drilling of four vertical wells targeting the Whangai and Waipawa source rocks. During the quarter, construction and surface lease access consents were awarded. Upon receipt of the necessary drilling consents from district and regional councils being obtained in a timely manner, TAG and Apache anticipate well-site construction to begin in the first quarter of calendar 2013 followed shortly by drilling operations.
In addition to East Coast Basin permits noted above that form the TAG/Apache JV, TAG completed the acquisitions of a 100% interest in two additional permits during the quarter: PEP 53674 and PEP 52676.
Canterbury Basin Operations
During the quarter, TAG Oil also acquired a new frontier exploration permit ("PEP 52589") in the Canterbury Basin, situated both offshore and onshore in New Zealand. At the date of this report, TAG has initiated the acquisition of 80 km's of new 2D seismic over certain leads identified within the permit. The Canterbury Basin is an under-explored frontier area with many geological similarities to the productive Taranaki Basin.
Historical drilling results in Canterbury indicate good exploration potential with two gas/condensate discoveries drilled in the offshore portion of the Basin, one of which tested in excess of 10 million cubic feet of gas and 2,300 barrels of oil per day. Although these discoveries were uneconomical due to the high cost of offshore development, more importantly, the gas/condensate accumulations found in these wells confirm that generation, migration and entrapment of hydrocarbons occur in the basin, indicating additional accumulations are likely to be present.
Offshore drilling scheduled by majors such as Anadarko and Origin Energy in 2013/2014 allow TAG to focus initially onshore while holding considerable upside related to its control over the onshore and near shore acreage directly updip of the scheduled deep water offshore wells.
Expenditures on the Company's oil and gas properties during Q2 of the 2013 fiscal year amounted to approximately $22.1 million, primarily invested in the Company's Taranaki operations for drilling, testing, workovers and infrastructure as follows:
|Cheal Field||$18.6 million|
|Sidewinder Field||$1.5 million|
|East Coast, Taranaki Offshore, Canterbury||$2.0 million|
The East Coast Joint Venture invested approximately $0.8 million during the quarter.
TAG Oil has filed its second quarter September 30, 2012, condensed consolidated unaudited interim financial statements and management discussion and analysis with the Canadian Securities Administrators. Copies of these documents can be obtained electronically at http://www.sedar.com, or for additional information please visit TAG Oil's website at http://www.tagoil.com/.
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. With 100% ownership over all its core assets, including oil and gas production infrastructure, TAG is enjoying substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact exploration prospects identified across more than 2,953,810 net acres of land in New Zealand.
In the East Coast Basin, TAG has entered into a farm-out agreement with Apache Corporation to explore and potentially develop the major unconventional resource potential believed to exist in the tight oil source-rock formations that are widespread over the Company's acreage. These oil-rich and naturally fractured formations have many similarities to North America's Bakken source-rock formation in the successful Williston Basin.
TAG Oil has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to "BOE's". BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Cautionary Note Regarding Forward-Looking Statements:
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. These statements are based on certain factors and assumptions including;
A. all estimates and statements that describe the Company's objectives, goals, production rates, infrastructure capacity and or future plans relating to the seismic, testing, work over and drilling programs in Taranaki are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. These forward-looking statements are based on certain factors and assumptions, including factors and assumptions regarding the management's views on the oil and gas potential in the Permits, well performance, the success of any operations, completing infrastructure and the costs necessary to complete the operations; and
B. those relating to TAG Oil's exploration and development of its oil and gas properties within the Cheal and Sidewinder project areas, the production and establishment of additional production of oil and gas in accordance with TAG Oil's expectations at Cheal and Sidewinder, well performance, drilling the completion of new infrastructure at Cheal and Sidewinder, the increase of cash flow from new production, expected growth, results of operations, performance, prospects, evaluations and opportunities. While TAG Oil considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. 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.
TAG Oil is involved in the exploration for and production of hydrocarbons, and its property holdings with the exception of the Cheal and Sidewinder project areas are in the grass roots or primary exploration stage. Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. There is no certainty that the expenditures incurred on TAG Oil's exploration properties will result in discoveries of commercial quantities of hydrocarbons. TAG Oil's future success in exploiting and increasing its current reserve base will depend on TAG Oil's ability to develop its current properties and on its ability to discover and acquire properties or prospects that are producing. There is no assurance that TAG Oil's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas.
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 and its independent evaluator have made, including TAG's most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG's SEDAR profile at www.sedar.com.
TAG 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.
SOURCE TAG Oil Ltd.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 6, 2015 06:30 PM EDT Reads: 967
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
May. 6, 2015 06:15 PM EDT Reads: 2,748
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 6, 2015 04:45 PM EDT Reads: 853
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
May. 6, 2015 04:30 PM EDT Reads: 1,303
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around the world, while creating a new service that Avnet and its IT solution providers can offer to their...
May. 6, 2015 02:45 PM EDT Reads: 1,072
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
May. 6, 2015 12:15 PM EDT Reads: 5,894
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
May. 6, 2015 12:00 PM EDT Reads: 4,538
It's time to put the "Thing" back in IoT. Whether it’s drones, robots, self-driving cars, ... There are multiple incredible examples of the power of IoT nowadays that are shadowed by announcements of yet another twist on statistics, databases, .... Sorry, I meant, Big Data(TM), tiered storage(TM), complex systems(TM), smart nations(TM), .... In his session at WebRTC Summit, Dr Alex Gouaillard, CTO and Co-Founder of Temasys, will discuss the concrete, cool, examples of IoT already happening today, and how mixing all those different sources of visual and audio input can make your life happier ...
May. 6, 2015 11:15 AM EDT Reads: 773
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
May. 6, 2015 11:15 AM EDT Reads: 3,260
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
May. 6, 2015 11:00 AM EDT Reads: 5,901
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
May. 6, 2015 11:00 AM EDT Reads: 4,482
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
May. 6, 2015 11:00 AM EDT Reads: 3,004
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
May. 6, 2015 11:00 AM EDT Reads: 4,032
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
May. 6, 2015 10:45 AM EDT Reads: 4,500
In his session at WebRTC Summit, Peter Dunkley, Technical Director at Acision, will look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. He will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter Dunkley is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS...
May. 6, 2015 10:30 AM EDT Reads: 738
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
May. 6, 2015 10:30 AM EDT Reads: 5,509
What if, during a snow emergency, an on-the-ground sensor could automatically trigger a relevant emergency notification related to snowfall and road impact. And then, after it’s triggered, that notification is delivered intelligently to individuals based on an extensive set of rules designed to alert the most available and capable responders. This “what if” question about “smart highways” is short-sighted. We are already there, and we are only getting started. While mainstream attention is paid to machine-to-machine communications, new technologies are being developed to make these communica...
May. 6, 2015 10:26 AM EDT Reads: 614
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
May. 6, 2015 10:00 AM EDT Reads: 5,672
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
May. 6, 2015 09:45 AM EDT Reads: 3,508
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 6, 2015 09:45 AM EDT Reads: 6,064