VANCOUVER, Feb. 14, 2019 /PRNewswire/ - International oil and gas explorer, TAG Oil Ltd. (TSX: TAO andOTCQX: TAOIF) is pleased to report its third quarter results for the interim period ending December 31, 2018. Of note for the quarter, revenues generated from oil and gas sales increased by 12% along with a 1% increase in net daily production.
Q3 2019 HIGHLIGHTS
- At December 31, 2018, the Company had $2.8 million (September 30, 2018: $3.2 million) in cash and cash equivalents and $3.1 million (September 30, 2018: $2.4 million) in working capital.
- Average net daily production increased by 1% for the quarter ended December 31, 2018, to 1,211 boe/d (80% oil) from 1,195 boe/d (80% oil) for the quarter ended September 30, 2018.
- Revenues generated from oil and gas sales increased by 12% for the quarter ended December 31, 2018, to $8.8 million from $7.9 million for the quarter ended September 30, 2018.
- Operating netbacks decreased by 8% for the quarter ended December 31, 2018, to $43.14 per boe compared with $47.08 per boe for the quarter ended September 30, 2018.
- Capital expenditures totalled $3.8 million for the quarter ended December 31, 2018, compared to $3.0 million for the quarter ended September 30, 2018.
- The second phase of the planned workover program at PMP 38156 (Cheal) commenced in October 2018.
- On October 11, 2018, an application to extend the duration of PEP 51153 (Puka) to September 22, 2022 was approved by New Zealand Petroleum and Minerals ("NZP&M").
- On October 16, 2018, a mining permit referred to as PMP 60454 (Supplejack) was granted by NZP&M (covering 1,851 acres) and has been carved out of the existing exploration permit (PEP 57065).
- On October 17, 2018, TAG, through its subsidiary CX Oil Limited ("CX"), and MEO New Zealand Pty Limited ("MEO") entered into a conditional agreement where MEO will transfer its 30% interest in PEP 51153 (Puka) to CX. Accordingly, CX has agreed to use its commercially reasonably efforts to satisfy the remaining conditions and acquire MEO's 30% interest.
SALE OF NEW ZEALAND ASSETS
On November 9, 2018, the Company, and certain of its subsidiaries, entered into a definitive share and asset purchase agreement with Malaysian-based Tamarind Resources Pte. Ltd., and certain of its subsidiaries, for the sale of substantially all of TAG's Taranaki Basin assets and operations in New Zealand (the "Transaction").
On January 3, 2019, TAG's shareholders approved the Transaction. A total of 46.74% of TAG's 85,282,252 outstanding shares were voted by TAG's shareholders, of which 38,853,531 shares (97.47%) were voted "for" the Transaction. The completion of the Transaction remains subject to the satisfaction of several conditions, including regulatory approvals. Additional information about the Transaction can be found in the management information circular dated November 30, 2018, which is filed under TAG's SEDAR profile at www.sedar.com.
About TAG Oil Ltd.
TAG Oil Ltd. (http://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 currently has 85,282,252 shares outstanding.
Cautionary Note Regarding Forward-Looking Statements and Disclaimer
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 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 the Company's plans relating to operations and the completion of the Transaction 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 that the actual results realized in the future will be the same in whole or in part as those presented herein.
Factors that could cause actual results to differ from those contained in the forward-looking statements are 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, the management information circular that TAG filed in connection with the Transaction and TAG's annual information form, 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.
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.