TAG Oil earnings on rise with new wells
Canadian oil and gas producer TAG Oil, which operates onshore Taranaki exploring “unconventional” shale field prospects in the eastern North Island, has quadrupled production revenues in the first nine months of the current financial year.
TAG told the Toronto Stock Exchange its production revenue was $C12.98 million in the three months to December 31, and $26.21 million for the first nine months of the year, compared with $C3.85 million and $C8.08 million respectively in the previous financial year.
This reflects production from a range of wells brought to the market in recent months, with the company having drilled 12 successful wells in a row in its Cheal prospect, onshore Taranaki.
The company is currently drilling an extra two wells at Cheal, and it will be “approaching our first four unconventional wells soon to be drilled in the East Coast Basin,” in a partnership with Apache Corporation of Texas.
TAG’s oil production as higher than forecast because of “anomalous recent high rate results” from two of its Cheal wells, and that investment in infrastructure to link the company’s various producing wells together would “allow for drilling success at TAG’s high-impact deep prospects such as Cardiff and Hellfire to accelerate commecrialisation in the event of a discovery.”
At December 31, the company remained debt free, with working capital of C$67 million, with net profit for the nine months being $C10.9 million, before deducting $C5.4 million in non-cash, stock-based compensation.