VANCOUVER, Aug. 30 /CNW/ - Independent Canadian oil and gas production
and exploration company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF) announced
today that the Company has filed its first quarter 2008 financial statements
along with the accompanying management's discussion and analysis as required
pursuant to National Instruments 51-101 and 51-102. Copies of these documents
can be obtained electronically through the SEDAR system at www.sedar.com or
through the Company's website at www.tagoil.com.
Summary of selected financial information:
TAG started the 2008 fiscal year with $13.43 million in cash and cash
equivalents and ended the first quarter with $10.15 million at June 30, 2007
with the decrease in cash for the quarter resulting materially from capital
expenditures related to the Cheal oil field development plan. TAG does not
have any exposure to asset-backed commercial paper as all of the Company's
invested cash balances are invested in highly rated liquid instruments with a
large financial institution. Shareholders equity at quarter end was
$39.24 million (March 31, 2007: $40.13 million).
During the quarter TAG recorded $893,499 in production revenue from the
Cheal oil field from the production of 36,434 barrels of oil gross (TAG net:
11,112 barrels) with daily production rates averaging approximately 400
barrels of oil gross per day. Subsequent to quarter end the Cheal production
facilities have been fully commissioned and the field, is currently producing
from four wells at approximately 850 barrels of oil per day gross, using a
combination of temporary production on the Cheal B site and the permanent
production facilities on the Cheal A site.
The loss recorded for the quarter was $911,763 (0.01 per share) and
included production revenue of $893,499 and production costs and royalties
amounting to $261,588 and $40,738, respectively. Significant contributors to
the loss included a foreign exchange loss of $551,244 related to fluctuations
of currency on hand and general exploration costs of $340,810 that relate to
the remaining costs of certain exploration permits that were written-off
during the 2007 fiscal year. General and administrative costs for the quarter
amounted to $383,961 which is a reduction of $77,843 when compared to the
comparable quarter last year.
Commenting on the quarterly results Garth Johnson, incoming Chief
Executive Officer, said: "We are satisfied with the progress made at Cheal
during the quarter and are looking forward to increases in production rates
and efficiency now that the Cheal production station has been fully
commissioned. Going forward TAG faces a number of challenges that relate to
costs of exploration and development and our reduced working capital balances
resulting primarily from significantly higher than projected costs to develop
the Cheal oil field. However that being said, a number of opportunities remain
available to TAG in New Zealand and we have taken steps to adapt to the
challenges and to preserve our capital by reducing costs, adjusting our risk
profile and by taking a hard look at our oil and gas interests to ensure any
future development and exploration programs reflect our new risk profile. We
are reviewing all of the strategic alternatives available to TAG so we can
maximize the value of Cheal and our other assets for our shareholders."
About TAG Oil:
TAG Oil Ltd. is an independent Canadian oil and gas exploration and
production company with international operations in the Taranaki and East
Coast Basins of New Zealand.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Garth Johnson, email@example.com, (604) 609-3350