makinezmoney
7 years ago
$TAOIF: NEWS.... Very Positive Flow-Rates from Drilling
Should get from here at $0.27/sh to $0.50 given current rising
oil price over $65/bbl
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https://www.tagoil.com/wp-content/uploads/2018/02/TAG-Investor-Presentation-Winter-2018.pdf
AG Oil's Pukatea-1 Well Flows Oil and Gas
NEWS PROVIDED BY
TAG Oil Ltd.
09:00 ET
VANCOUVER, March 26, 2018 /PRNewswire/ - International exploration and production company, TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF), reports that the Pukatea-1 well was completed at the Mt. Messenger formation, where 12.9 meters of oil-and-gas bearing sands were perforated. Following perforation, a flow test was completed during which the well flowed naturally at a rate of up to 600 b/d of fluids on initial well clean-up. Over a 12-hour test period using a 24/64" choke setting, the well flowed at a stabilized rate of ~276 boe/d (74% oil) without the need for artificial lift.
Toby Pierce, TAG Oil's CEO, commented, "This very encouraging flow test paves the way for another potential TAG Oil-operated, high netback, oil field development in New Zealand. With TAG Oil's current daily net production at ~1,297 boe and with Brent Oil prices currently over $68/b, we continue to realize solid cash flows as we optimize our Taranaki operations with a view to increase production within our core operating areas."
Pukatea-1 is located in onshore Petroleum Exploration Permit 51153 (TAG Oil 70%) in the Taranaki Basin of New Zealand. The permit also contains the shut-in Puka-2 oil well, which can also be monetized upon field development. The oil produced during the Pukatea-1 flow test has been combined with other oil produced in the area and sold to the market at Brent Oil pricing.
About TAG Oil Ltd.
TAG Oil (www.tagoil.com/) is an international oil and gas explorer 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.
Cautionary Note Regarding Forward-Looking Statements and Disclaimer
Statements contained in this 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 TAG Oil's plans relating to operations at the Puka permit 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.
SOURCE TAG Oil Ltd.
Related Links
www.tagoil.com
garyadam
10 years ago
TAG Oil
TAG Oil Begins Next Round of Development Drilling and Optimization Work in Core Taranaki Basin Acreage
Vancouver, B.C. – November 5, 2014 – TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF) is pleased to announce that development, appraisal and step-out drilling, and field optimization work has resumed at the Company’s Taranaki oil and gas fields. Located in the main production fairway of the Taranaki Basin on the North Island, New Zealand, TAG is pursuing significant reserve growth through developing and exploiting its lightly explored discovery acreage in the shallow and high impact deep formations.
TAG anticipates that this next wave of low risk development work — focused on oil production growth in the proven Mt. Messenger (~2000m) and Urenui (~1400m) Formations — provides considerable potential for the Company to increase its high netback oil production and add new reserves for many years ahead.
As at March 31, 2014, TAG had a proved and probable reserve base in the Mt. Messenger and Urenui Formations of 5.9 million barrels of oil equivalent and approximately 477 bcf & 45 mmbls of undiscovered resource potential identified in Taranaki.(1) In October, 2014 TAG achieved record monthly production of 1,990 BOE (76% oil) per day.
Near-term anticipated schedule for Taranaki operations
Permit Number Well Name TAG Working Interest Date
PEP 54877 Cheal-E-JV-6 development 70% Nov 2014
PMP 38156 Cheal-E7 appraisal 100% Dec 2014
PEP 54877 Recomplete Cheal-E-JV-2 70% Jan 2015
PMP 38156 Build Cheal E to A pipeline 100% Feb 2015
PMP 38156 Cardiff-3 uphole test 100% Mar 2015
PEP 55769 Sidewinder-B1 100% Apr 2015
PEP 55769 Sidewinder-B2 100% May 2015
TAG kicks off this Taranaki drilling campaign with the Cheal-E-JV-6 well (TAG 70%), and the Cheal-E7 well (TAG 100%).
The Cheal-E site is a new pool oil discovery of particular interest, as strong production performance continues from TAG’s Cheal-E1, Cheal-E4, and Cheal-E5 wells. These wells continue to flow oil naturally from E-1 and E-4 and under artificial lift at E-5, making future development of the Cheal-E site area, as well as future drilling on TAG’s 100%-controlled Cheal acreage, prospective for additional high productivity wells.
Following the Cheal-E site wells, the Nova-1 drill rig is planned to move to TAG’s 100%-controlled Sidewinder oil and gas field to drill step out wells. These wells will target the oil potential identified from oil shows encountered in the six Sidewinder gas wells.
The Sidewinder discovery acreage borders the Taranaki Basin’s original Mt. Messenger oil field, the Ngatoro/ Kaimiro field, a close analogy to TAG’s Cheal and Sidewinder discoveries. In contrast to Cheal and Sidewinder which have been on full time production for seven and three years respectively, the Kaimiro/Ngatoro field has been producing for 31 years, and still has 7 million BOE’s of recoverable reserves remaining from a 22 million BOE ultimate recovery total.(2)
Cardiff-3 Uphole Completion Update
Also in the Taranaki Basin, TAG controls 100% interest in several deep, high-impact drilling opportunities, which hold substantial resource potential in the Kapuni Group Formation. Recently, TAG successfully drilled and cased the Cardiff-3 well to total depth of 4,853m (15,900 ft) and encountered oil-and-gas-bearing tight sands, as expected, across three separate potential pay zones. The fracture stimulation of the first zone tested, the lower K3E zone, returned gas and condensate, but at uneconomic rates. After further technical analysis, TAG will now production test the primary uphole zones, the McKee and K1A Formations which are both producing formations in large fields along trend to the Cardiff prospect.
Corporate Update
In other news, TAG announces that Dr. Douglas Ellenor has joined the board of directors of the Company, replacing Mr. Ronald Bertuzzi who is retiring. Dr. Ellenor holds a PhD in Geology and has a proven track record of finding oil as well as managing large capital programs, including major acquisitions and divestments over the course of his career. Dr. Ellenor brings to TAG extensive international experience, including 25 years with Shell Petroleum, with duties ranging from his early years working as a Junior Geologist, to becoming Head of Exploration and New Ventures, and ending with four years as President and CEO of the Shell Companies of Colombia. “On behalf of TAG, I would like to personally extend my sincere appreciation to Ron for his many years of dedicated service to TAG Oil, starting back from the Company’s formative years. Ron has been an enthusiastic and valuable contributor, and I wish him the best in retirement,” commented Alex Guidi, founder and Chairman of TAG Oil. “I also welcome Doug to our board and look forward to working closely with him and our board to help guide TAG and leverage our strong corporate position.”
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with extensive operations in New Zealand. With 100% ownership over all its core assets, including extensive state-of-art oil and gas production infrastructure, TAG is enjoying significant organic value creation through exploration success and ongoing development and appraisal drilling of several light oil and gas discoveries. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified within the Company’s Taranaki Basin, East Coast Basin and Canterbury Basin acreage which is prospective for major discovery in New Zealand.
For further information:
Dan Brown or Garth Johnson
Phone: 1-604-682-6496
Email: info@tagoil.com
Website: http://www.tagoil.com/
Blog: http://blog.tagoil.com/
Reserve/Resource Estimates and Undiscovered Resources (1):
The reserve estimate was prepared by Sproule International Limited (“Sproule”) with an effective date of March 31, 2014. The resource estimates prepared by Sproule has an effective date of July 31, 2013, and by TAG professionals have an effective date of July 31, 2013, and July 16, 2014. Each is a qualified reserves evaluator in accordance with NI 51-101 and the COGE Handbook.
Undiscovered Hydrocarbon Initially-In-Place (equivalent to undiscovered resources or undiscovered resource potential) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically viable or technically feasible to produce.
Development and exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. TAG's future success in exploiting and increasing its current reserve base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that TAG's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if TAG encounters unforeseen geological conditions. TAG is subject to uncertainties related to the proximity of any reserves that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such reserves may be found. Adverse climatic conditions at such properties may also hinder TAG's ability to carry on exploration or production activities continuously throughout any given year.
The significant positive factors that are relevant to the resource estimate are:
Proven production in close proximity;
Proven commercial quality reservoirs in close proximity; and
Oil and gas shows while drilling wells nearby.
The significant negative factors that are relevant to the resource estimate are:
Tectonically complex geology could compromise seal potential; and
Seismic attribute mapping in the two, deep, liquids’-rich gas plays can be indicative but not certain in identifying proven resource.
Analogous Information (2): Certain information in this news release may constitute “analogous information” as defined in NI 51-101, including, but not limited to, information relating to areas with similar geological characteristics to the lands held by TAG. Such information is derived from a variety of publicly available information from government sources, regulatory agencies, public databases or other industry participants (as at the date stated therein) that TAG believes are predominantly independent in nature. TAG believes this information is relevant as the analgous information is nearby TAG’s lands and it helps to define the reservoir characteristics in which TAG may hold an interest. TAG is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and in accordance with the COGE Handbook. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by TAG and there is no certainty that the reservoir data and economics information for the lands held by TAG will be similar to the information presented therein. The reader is cautioned that the data relied upon by TAG may be in error and/or may not be analogous to TAG’s land holdings.
Cautionary Note Regarding Forward-Looking Statements and BOEs:
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. Such statements can be generally, but not always, 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 objectives, goals, forecasts, guidance, production rates, test rates, optimization, uphole completions, timing of operations, and/or future plans with respect to the drilling and field optimization work in the Taranaki Basin 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 and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. 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 would 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 and its independent evaluator have made, including TAG's most recently filed reports in Canada under NI 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.
TAG Oil has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to "BOEs." 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.
TAG Oil Ltd.
tagoil.com
Corporate Office
2040 885 West Georgia Street
Vancouver, B.C. V6C 3E8
ph 1.604.682.6496
fx 1.604.682.1174
futrcash
11 years ago
TAG Receives Consent to Drill Exploration Well on Waitangi Hill, Targeting Fractured Source Rocks
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VANCOUVER, May 5, 2014 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF) announces that the Gisborne District Council has granted TAG consent to drill the Waitangi Valley-1 well (TAG 100%), located in Petroleum Exploration Permit 38348 in the East Coast Basin, New Zealand. Earthwork activities are already underway to build an access road and drilling pad, with construction expected to be fully complete and drilling rig mobilized to the site by the end of June. Waitangi Valley-1 will be drilled to a total depth of 3600 meters, with the well targeting the naturally fractured Waipawa Black Shale and Whangai source rock formations.
The Waipawa and Whangai formations are regarded as high-quality source rocks that compare technically to successful commercial tight-oil plays in North America, such as the Bakken Shale and Eagle Ford discoveries. The potential oil resource in the source rocks on TAG's acreage is significant by world standards, with independent assessments on TAG-controlled lands estimated at an undiscovered resource potential of approximately 14 billion barrels of oil initially-in-place. The mid-range P50 assessment considers approximately 20% of TAG's total land holdings, while the source rocks are interpreted to be widespread and, more importantly, accessible on a much greater area of the Company's 1.5 million acres. The Waitangi Valley-1 well also has significant conventional discovery potential within multiple Miocene-aged formations in an area where oil has already been discovered under significant pressure.
Waitangi Valley-1 will be the first modern deep exploration well drilled in the Waitangi Hill area: The historical Waitangi-1 oil discovery in 1912 produced 50 degree API sweet light crude from an oil reservoir at approximately 300 meters depth[1]. Geotechnical work done on oil samples taken from the Waitangi-1 well, which still produces live oil to surface today, and nearby oil seeps and oil samples from the five shallow Waitangi Hill wells TAG drilled in 2011, conclusively confirmed the "oil kitchen" is working and the underlying Waipawa and Whangai Formations are the source of this high-quality, movable oil making these naturally fractured oil and gas source rocks a prime unconventional exploration target.
"We are extremely pleased to receive this consent and we thank the Gisborne District Council for their diligence leading to this decision," said Garth Johnson, TAG Oil Ltd. Chief Executive Officer. "The Waitangi Valley well is one of TAG's high priority exploration prospects which was technically validated through work in our previous joint venture with Apache, and therefore we are very excited to drill this well. It is our vision to establish the country's first unconventional oil production and prove commerciality of this potentially very large resource."
1Such information is derived from a variety of publicly available information from government sources, regulatory agencies, public databases or other industry participants (as at the date stated therein) that TAG believes are predominantly independent in nature.
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 extensive oil and gas production infrastructure, TAG is enjoying significant organic value creation through exploration success and ongoing development and appraisal drilling of several light oil and gas discoveries. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified in the Taranaki Basin, East Coast Basin and Canterbury Basin that covers more than 2.7 million net acres of land, prospective for major discovery in New Zealand.
Resource Estimates:
The resource estimates in this document were prepared by Sproule International Limited with an effective date of July 31, 2013, and by AJM Petroleum Consultants with an effective date of September 1, 2008. Each is a qualified reserves evaluator in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook.
Best Estimate is considered to be the best estimate of the in-place volumes that will actually be present. It is equally likely that the actual in-place volumes will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the in-place volumes will equal or exceed the best estimate.
Undiscovered Resources:
Undiscovered Oil Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable."
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. TAG's future success in exploiting and increasing its current reserve base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that TAG's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if TAG encounters unforeseen geological conditions. TAG is subject to uncertainties related to the proximity of any reserves that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such reserves may be found. Adverse climatic conditions at such properties may also hinder TAG's ability to carry on exploration or production activities continuously throughout any given year.
The significant positive factors that are relevant to the resource estimate are:
Proven production in close proximity;
Proven commercial quality reservoirs in close proximity; and
Oil and gas shows while drilling wells nearby.
The significant negative factors that are relevant to the resource estimate are:
Tectonically complex geology could compromise seal potential; and
Seismic attribute mapping in the two, deep, liquids'-rich gas plays can be indicative but not certain in identifying proven resource.
futr
Steponit
11 years ago
More good news out. Looks like Tag's partnership with East West Petroleum is working out great!
I highlighted the best part of this news relating to Tag Oil in red.
"East West Petroleum Provides Operational Update
8:03 AM ET 2/18/14 | Marketwire
East West Petroleum Corp. (TSX VENTURE: EW) (the "Company" or "East West") is pleased to provide the following operational update on its operations in the Taranaki Basin of New Zealand and in Romania. The Company's joint venture partner, TAG Oil Ltd. ("TAG"), is the operator of all licenses in New Zealand, while in Romania the Company's partner Naftna Industrija Srbije ("NIS") is the operator of all concessions.
Update on production from Cheal E-site, New Zealand
The Company is pleased to report that to Feb. 15, 2014 the gross production from the Cheal E-site totaled over 50,000 boe. The Cheal-E1 well is currently producing at a rate of over 500 boepd (87% oil) through a 17/64" choke. The Cheal-E4 has been on test production since January 1, 2014, with an average production rate of over 280 boepd (83% oil). The Cheal-E4 well will soon be placed on permanent production following a temporary shut-in period to allow for temperature and pressure analysis while other E-site wells are flow tested, starting with Cheal-E5. The initial production testing data is being used to determine the long-term production scheme for the site.
Under the joint operating agreement with TAG, East West paid 100% of the first C$5 million in drilling costs on the Cheal E site and is entitled to receive 100% of the first C$5 million in revenue, while paying 100% of the costs to produce that revenue, after which all revenue and costs will be shared 70:30 between TAG and EW. To date, over 23,000 barrels of oil have been sold at an average price of over US$109/b from which the Company estimates it will receive cash netbacks of over US$80 per barrel. East West expects to have recovered the $5 million in revenue by the end of Q1 2014.
2014 Proposed Capital Budget
The Company also announces that the minimum committed 2014 capital expenditures in New Zealand for East West are expected to total C$10.4 million, which will include the drilling of three wells from the Cheal G-site, one well at Southern Cross, and at least one well from the Cheal E-site. In addition, seismic acquisition and reprocessing is planned for the Taranaki and East Coast permits in 2014. Further wells to the 2014 drilling program are expected to be added following the completion and interpretation of the results of the current drilling program. Capex for the 2014 committed work program and any additional wells will be financed from the Company's existing cash balance and from production from Taranaki Basin permits.
In Romania (15% working interest), seismic acquisition is ongoing on the Tria licence in preparation for spudding the first of three wells in the committed Phase I work program later this year. Seismic acquisition will commence on the Baile Felix, Periam and Biled concessions following the award of contracts for 2D and 3D seismic acquisition on the respective blocks. Under the farm out agreement with NIS, East West will be fully carried through to commerciality which includes all Phase I and Phase II work on the concessions. NIS and the Company will be targeting conventional resources and all work will be done in accordance with local and international regulations and best practices.
Further details on the East West's 2014 planned capex and work program can be found in the Company's corporate presentation available at www.eastwestpetroleum.ca.
About East West Petroleum Corp.
East West Petroleum (http://www.eastwestpetroleum.ca) is a TSX Venture Exchange listed company established in 2010 to invest in international oil & gas opportunities. East West has built a diverse platform of attractive exploration assets covering a gross area of approximately 1.8 million acres. In New Zealand, East West holds an interest in three exploration permits near to existing commercial production in the Taranaki Basin with a nine well drilling campaign, operated by TAG Oil Ltd. (TSX: TAO), is in progress; in December 2013, the Company was awarded one block in the emerging East Coast Basin of New Zealand when covers over 100,000 acres. The Company also interests in four exploration concessions covering 1,000,000 acres in the prolific Pannonian Basin of western Romania with a subsidiary of Russia's GazpromNeft; a joint venture exploration program covering 8,000 gross acres in the San Joaquin Basin of California; an oil-prone exploration block of 100,000 acres in the Assam region of India with the three largest exploration and production Indian firms ONGC, Oil India and GAIL; and a 100% interest in a 500,000 acre exploration block onshore Morocco. The Company has now entered operational phases in Romania, where it will be fully carried by its partner Gazprom-controlled Naftna Industrija Srbije in a seismic and 12-well drilling program which is underway.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: the ability to raise sufficient capital to fund exploration and development; the quantity of and future net revenues from the Company's reserves; oil and natural gas production levels; commodity prices, foreign currency exchange rates and interest rates; capital expenditure programs and other expenditures; supply and demand for oil and natural gas; schedules and timing of certain projects and the Company's strategy for growth; competitive conditions; the Company's future operating and financial results; and treatment under governmental and other regulatory regimes and tax, environmental and other laws.
Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity. Best estimate resources are considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term is a measure of central tendency of the uncertainty distribution (most likely/mode, P50/median, or arithmetic average/mean). As estimates, there is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources that the estimated reserves or resources will be recovered or produced.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
East West Petroleum Corp.
Chris Beltgens
Corporate Development Manager
+1 604 682 1558
+1 604 682 1568 (FAX)
www.eastwestpetroleum.ca
SOURCE: East West Petroleum Corp."
Steponit
11 years ago
NEWS! Financials out. Looking great! Just bought some more shares to add to the shares I bought last week.
"TAG Reports Strong Revenue Growth and Profitable Q3 Results with Extensive Conventional & Unconventional Exploration Program Underway
5:44 PM ET 2/14/14 | PR Newswire
New Zealand oil and gas producer TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF) is pleased to provide its financial and operating results for the three and nine months ended December 31, 2013. TAG currently has 64,402,052 common shares outstanding (68,085,386 fully diluted) and at December 31, 2013 the Company had cash of $68.5 million, working capital of $71.2 million and no debt.
"We continue to make significant progress on our strategy to deliver long-term shareholder value across all fronts within TAG, as well as achieving consistent profitability which has differentiated us from others in our international peer group." said Garth Johnson, TAG Oil Ltd. Chief Executive Officer. "With record production revenues, cash flow and profits and following completion of extensive infrastructure upgrades which are critical to facilitate anticipated growth, we have increased operational flexibility, which has resulted in committing to New Zealand's most active and diverse exploration campaigns in the country's history. We are confident TAG can continue to deliver value through organic production growth within an extensive drill-ready prospect portfolio consisting of low risk shallow Miocene development and step out wells, and leverage this cash flow into high-impact deep Eocene conventional wells and unconventional prospects in the East Coast."
TAG Oil Third Quarter Fiscal 2014 Highlights Ending December 31, 2013
-- Sold 97,616 barrels (nine months: 306,729 barrels) of light oil and 194 mmcf (nine months: 1.23 bcf) of gas.
-- Netbacks of approximately $78 per barrel of oil and $4.25 per mcf gas received for a combined netback of $64.63 per BOE compared to average North American netbacks ranging of approximately $34 per BOE.
-- Revenue for the three months ended December 31, 2013 increased 19% to $12,939,442 and 35% to $43,522,224 over the nine month period when compared to the same periods last year.
-- Net income for the three and nine-month periods ended December 31, 2013 increased 365% and 76%, respectively when compared with the same periods last year.
-- Cash provided by operating activities for the nine months to December 31, 2013 increased by 40% to $21.26 million compared to $15.12 million for the same period last year.
-- Active shallow drilling program (~2000 meters depth) continues to yield excellent success with five wells drilled within PEP 54877 (Cheal North East - E Site), two wells drilled on PEP 54879 (Cheal South - G Site).
-- TAG's first deep well, Cardiff-3 (4,863 meters depth) intersects 45 meters (148 feet) of potential net pay in the K3E zone within the Kapuni Sands Formation.
-- Reservoir characterization study on Ngapaeruru-1 well in East Coast Basin unconventional play provides encouraging new data.
-- Capital expenditures in the first nine months of fiscal year 2014 were $47.8 million consitsting of drilling 6 shallow Miocene wells, one deep Eocene well and spending $6.92 million on new infrastructure.
Financial Highlights
View data
Three Months Ended Nine Months Ended 2014 2013 % Change 2014 2013 % Change Production revenue $12,939,442 $10,851,223 19% $43,522,224 $32,293,424 35% Net income (loss) $2,971,158 $638,521 365% $8,903,569 $5,056,468 76% Earnings per share (diluted) $0.05 $0.01 400% $0.15 $0.08 88% Working capital $71,231,741 $67,750,630 5% $71,231,741 $67,750,630 5% Total assets $254,073,555 $203,159,987 25% $254,073,555 $203,159,987 25% Long term debt $0 $0 - $0 $0 - Shareholder's equity $234,453,691 $187,271,076 25% $234,453,691 $187,271,076 25%
Oil and Natural Gas Operations, Production and Pricing
TAG continues to achieve record revenues including net income and cash flow. Operating netbacks of $78 per barrel of oil continue to be substantially higher than what is being achieved in North America, resulting in efficient payback of capital costs and long-term profitable operations.
Q3 FY2014 Oil and Natural Gas Production, Pricing and Revenue (net to TAG basis)
View data
2014 2013 Nine months ended Q3 Q2 Q3 2014 2013 Daily production volumes(1) Oil (bbls/d) 1,069 1,209 942 1,118 934 Natural gas (BOE/d) 458 891 785 874 831 Combined (BOE/d) 1,527 2,100 1,727 1,992 1,765 Daily sales volumes(1) Oil (bbls/d) 1,061 1,227 942 1,114 934 Natural gas (BOE/d) 351 782 512 747 581 Combined (BOE/d) 1,412 2,009 1,454 1,861 1,515 Natural Gas (Mmcf/d) 2,106 4,694 3,070 4,482 3,487 Product pricing Oil ($/bbl) 112.74 113.30 109.57 110.57 108.80 Natural gas ($/Mcf) 5.43 5.18 4.79 5.50 4.55 Sales Total revenue - gross $12,939,442 $15,884,584 $10,851,223 $43,522,224 $32,293,424 Less other revenue - gross (881,134) (861,603) - (2,863,656) - Oil and natural gas revenue - gross 12,058,308 15,022,981 $10,851,223 40,658,568 32,293,424 Oil and natural gas royalties(2) (1,398,536) (1,632,648) (1,252,872) (4,505,048) (3,659,444) Oil and natural gas Revenue - net $10,659,772 $13,390,333 $9,598,351 $36,153,520 $28,633,980
(1) Natural gas production converted at 6 Mcf:1BOE (for BOE figures, see BOE
definition below)
(2) Includes a 7.5% royalty related to the acquisition of a 69.5% interest
in the Cheal field
(3) Other revenue is electricity revenue related to OHL.
Taranakai Shallow Miocene and Deep Eocene Operations Update
Over the past several years, TAG has focused its efforts on developing the shallow Miocene targets (~2000 meters depth), with excellent success, as shown by thirty-one successful wells drilled to date. Given this success, TAG has added a deep Eocene drilling component to its Taranaki Basin operations with a goal to capture reserves several times larger than what is being achieved in the shallow Miocene drilling program. In the current quarter, TAG successfully drilled, logged and cased its first deep Eocene well, Cardiff-3, which intersected 45 meters (148 feet) of potential pay in the successful Kapuni Formation. The Company anticipates production testing this well in the near future. An independent assessment was prepared by Sproule International Limited with an effective date of July 31, 2013, which has estimated the undiscovered resource potential on the Cardiff prospect on a P50 basis at 160 billion cubic feet gas and 5.59 million barrels of natural gas liquids(1). Sproule is a qualified reserves evaluator in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook.
TAG Oil's shallow Miocene drilling program has continued concurrently with the deep Eocene drilling program; most recently eight oil wells have been drilled from the Company's Cheal-E and G sites, delineating a much larger oil saturated area than originally anticipated at the Cheal field. Utilizing TAG's 100% owned processing infrastructure, testing and first production has commenced on three of the five wells drilled from the Cheal E Site, with over 50,000 barrels of light oil produced to date from the new discovery site. The recent drilling success in the Cheal-E and G sites provides TAG with many years of low-risk development drilling opportunities and additional step out locations, such as the coming Southern Cross well that could further expand the scope and size of the Cheal pool.
East Coast Basin Update
TAG has now received the results of the Reservoir Characterization Study ("RCS") from independent experts in unconventional plays on the Ngapaeruru-1 well, the first ever East Coast Basin unconventional test well. The RCS study provides the first true unconventional data set ever acquired in the East Coast Basin and provides a number of encouraging attributes, and importantly confirmation that TAG's drilling mudlog interpretations from the Ngapaeruru-1 well demonstrate that oil is being generated in the Whangai source rocks.
Given the results of the study, TAG will now perforate and production test Ngapaeruru-1 in the coming months; with the goal being to prove the concept of moveable hydrocarbons from within the source rocks, a critical step to pursuing the economic viability of this unconventional play.
Details of the RCS report indicate a number of positives with respect to the Whangai source rocks as a viable unconventional oil target:
View data
a) The Whangai Formation source rocks penetrated in Ngapaeruru-1 is 293 meters thick, it's highly naturally fractured, the fractures are open, and each fracture zone correlates well with elevated oil and gas mudlog shows. b) The hydrocarbon-filled porosity exceeds the minimum standard thresholds for unconventional reservoirs. c) Permeabilities within the Whangai section exceed standard unconventional reservoir thresholds d) The Whangai Formation has very low clay content, indicating fracture stimulation can be highly effective. e) Vitrinite reflectance analysis places the Whangai source rocks in the oil/condensate window, correlating well with the 50-degree API oil seeps in this basin. f) Ngapaeruru-1 intercepted a lateral equivalent of the true organic rich Whangai source rocks interpreted in the basin from oil seep fingerprinting, indicating that the Whangai source rocks have lateral variations as expected. g) A deeper basinal setting (which is planned for the next two wells in the program) will look to identify increased TOC contents of the reservoir, which at Ngapaeruru-1 is slightly less than 1% (with 2% being the standard threshold) indicating subsequent wells may be more optimally located to intercept the ideal source rock origin.
The quality of the data set acquired at Ngapaeruru-1 is state-of-the-art, and, as expected, has provided the first ever specialized interpretation necessary to help unlock the major potential of this unconventional play.
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 extensive oil and gas production infrastructure, TAG is enjoying significant organic value creation through exploration success and ongoing development and appraisal drilling of several light oil and gas discoveries. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified in the Taranaki Basin, East Coast Basin and Canterbury Basin that covers more than 2.7 million net acres of land, prospective for major discovery in New Zealand.
TAG Oil has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to "BOEs". 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.
(1)Cardiff Resource Estimates Footnote:
Best Estimate is considered to be the best estimate of the in-place volumes that will actually be present. It is equally likely that the actual in-place volumes will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the in-place volumes will equal or exceed the best estimate.
Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable."
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. TAG's future success in exploiting and increasing its current reserve base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that TAG's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if TAG encounters unforeseen geological conditions. TAG is subject to uncertainties related to the proximity of any reserves that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such reserves may be found. Adverse climatic conditions at such properties may also hinder TAG's ability to carry on exploration or production activities continuously throughout any given year.
The significant positive factors that are relevant to the resource estimate are:
-- Proven production in close proximity;
-- Proven commercial quality reservoirs in close proximity; and
-- Oil and gas shows while drilling wells nearby.
The significant negative factors that are relevant to the resource estimate are:
-- Tectonically complex geology could compromise seal potential; and
-- Seismic attribute mapping in the two, deep, liquids-rich gas plays can be indicative but not certain in identifying proven resource.
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. Such statements can be generally, but not always, 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 objectives, goals, production rates, test rates, optimization, infrastructure capacity timing of operations and or future plans with respect to the drilling and testing in the Taranaki and East Coast Basins 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 and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. 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 would 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 and its independent evaluator have made, including TAG's most recently filed reports in Canada under NI 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."
sumisu
11 years ago
TAG Oil Update on Cardiff-3 Deep Well Drilling Progress and Cheal-E Site Drilling and Testing
Press Release: TAG Oil Ltd. – Mon, Nov 4, 2013 3:36 PM EST
VANCOUVER, Nov. 4, 2013 /PRNewswire/ - TAG Oil Ltd. (the "Company") (TAO.TO) and (TAOIF), reports that new wells in the Company's drilling program underway in the Taranaki Basin of New Zealand are showing encouraging results. These wells are part of an extensive New Zealand drilling campaign targeting significant hydrocarbon potential in lower risk shallow oil prospects and deeper high-impact gas-condensate prospects in the Taranaki Basin, and unconventional prospects in the East Coast Basin targeting naturally fractured source rocks.
Petroleum Mining Permit 38156 - Cardiff-3 (TAG 100%)
The deep Cardiff-3 well targeting the Eocene-aged Kapuni Formation is drilling ahead at approximately 4,113 meters after some delays due to the well encountering a high-permeability, hydrocarbon-bearing zone in the McKee Sands, at approximately 4,100 meters depth.
After drilling through the McKee Sands and into the second target zone, the K1A zone, TAG has encountered additional encouraging gas kicks of up to 20 times background levels. The Company expects to drill through the remainder of the main Kapuni Formation target zones in November and, at that time, will make a decision whether to complete and production test the well, if supported by data acquired as expected.
For further information regarding TAG Oil's deep drilling program please visit: http://www.tagoil.com/20130917-TAG-Oil-Deep-Drilling-Targets-Large-Onshore-Gas-Condensate-Resource-Taranaki.asp.
Petroleum Exploration Permit 54877 - Cheal-E Site (TAG 70%)
TAG continues to drill step out locations in the Cheal area. Wells recently drilled from the Cheal North East site have now significantly extended the known oil and gas saturated area from the initial Cheal pool discovery.
TAG recently completed the third of five consecutive wells to be drilled within Petroleum Exploration Permit 54877: Cheal-E1, E2 and E3 wells have all encountered oil-and-gas bearing sands in the Urenui and/or Mt. Messenger Formations. These wells have now been completed in preparation for production testing, which we anticipate will commence in a few days' time.
To ensure more reliable long-term production forecasting on future wells in this emerging play, the Cheal-E1, E2 and E3 wells will be initially rotated, so that each well will be individually tested for approximately 15 days, and then shut-in temporarily to conduct pressure and temperature analysis. Following this initial test period, all wells will then be placed into permanent production.
Based on these encouraging results in the Cheal-E site, TAG will now drill the Cheal-E4 and E5 wells, followed shortly by three new step out wells in Petroleum Exploration Permit 54879 (Cheal South, TAG 50%) with joint venture partner East West Petroleum Corp.
TAG Oil CEO, Garth Johnson commented, "I would like to thank our team for their continuing hard work and dedication to a very busy operational program that has been conducted to date without compromising safety. Not only are we seeing some very encouraging results via the drill bit at Cardiff and at our Cheal-E site, our team has managed to simultaneously build a cost-effective permanent production facility at the Cheal-E site that has the capability to test and place successful wells into permanent production, at a fraction of the time normally experienced. We're excited with the program we have underway, TAG's most active ever, and results to date have us looking forward to establishing new production and reserves in New Zealand for many years to come."
For further information regarding TAG Oil's production and drilling program please visit: http://www.tagoil.com/20130814-TAG-Oil-Reports-Strong-Q12014-Financials.asp
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 extensive oil and gas production infrastructure, TAG is enjoying significant organic value creation through development and appraisal drilling of several light oil and gas discoveries and through prospect generation across an extensive acreage position. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified in the Taranaki Basin, East Coast Basin and Canterbury Basin that covers more than 2,669,780 net acres of land, prospective for major discovery in New Zealand.
The resource estimates in this news release were prepared with an effective date of July 31, 2013. The estimates for Cardiff have been externally prepared by Sproule International Limited and the remaining estimates were prepared internally by TAG professionals, both of which are qualified reserves evaluators in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook.
Prospective resources are defined as those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. TAG's future success in exploiting and increasing its current reserve base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that TAG's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if TAG encounters unforeseen geological conditions. TAG is subject to uncertainties related to the proximity of any reserves that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such reserves may be found. Adverse climatic conditions at such properties may also hinder TAG's ability to carry on exploration or production activities continuously throughout any given year.
The significant positive factors that are relevant to the resource estimate are:
•Proven production in close proximity;
•Proven commercial quality reservoirs in close proximity; and
•Oil and gas shows while drilling wells nearby.
The significant negative factors that are relevant to the resource estimate are:
•Tectonically complex geology could compromise seal potential; and
•Seismic attribute mapping in the two, deep, liquids'-rich gas plays can be indicative but not certain in identifying proven resource.
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. Such statements can be generally, but not always, 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 objectives, goals, production rates, optimization, infrastructure capacity and or future plans with respect to the drilling in the Taranaki Basin 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 and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered original initially-in-place described above, availability of adequate funding, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. 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 and its independent evaluator have made, including TAG's most recently filed reports in Canada under NI 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.
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