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.