Sign up USA
Proactive Investors - Run By Investors For Investors

TAG Oil eyeing increase in output as it targets becoming self-funding

Despite lower production, revenues rose in the final quarter of 2017, helped by a recovery in the price of Brent crude and a sharp increase in operating netbacks
Oil rig
"With stronger netbacks TAG Oil is fully capable of self-funding itself both on our existing as well as our future operations," said Toby Pierce, TAG's CEO

TAG Oil Ltd (TSE:TAO) is looking for an upturn in production in the current quarter after running into production issues towards the end of 2017.

Average net daily production fell by 9% to 1,043 barrels of oil equivalent per day (boepd) in the final three months of 2017 from 1,151 boepd in the preceding quarter.

Revenues generated from oil and gas sales increased by 6% for the quarter to C$6.4mln from C$6.0mln in the July-September quarter.

Operating netbacks rose sharply by 40% to C$43.21 per boe from C$30.95 in the preceding quarter.

TAG posted net income, excluding impairment charges and write-downs, of C$324,098 for what is the third quarter of its fiscal year, versus a loss of C$2.25mln the year before.

"I am very pleased with both the increase in operating netbacks and the revenues quarter-over-quarter despite the modest declines in production,” said Toby Pierce, TAG Oil's chief executive officer.

“With temporary production issues experienced in Q3, which are being addressed, we anticipate increased production in the next quarter. Furthermore, with stronger netbacks TAG Oil is fully capable of self-funding itself both on our existing as well as our future operations,” he added.

“Finally, the water-flood programme continues to progress at Cheal with increased production volumes likely expected in calendar H2/18," Pierce revealed.

Shares in TAG were up 2.3% at C$0.45 in afternoon trading.

View full TAO profile View Profile

Tag Oil Timeline

Related Articles

range resources well in trinidad
August 16 2018
Infrastructure upgrades at Range’s Beach Marcelle oil field are underway, while two new wells at the project are due to be drilled later this year
1532456979_Prairie_Provident_Resources_-_Rig_in_Wheat.png
July 24 2018
The company is focused in the Wheatland and Princess in Southern Alberta, where it is targeting the Lower Mannville formation
Jack-up rig
September 25 2018
Two wells are already in small scale production but the new one, now called TLP-103c, will go down to 2,700m at target depth
Copyright © Proactiveinvestors.com, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use