VANCOUVER, Aug. 31 /CNW/ - International oil and gas producer and
explorer TAG Oil Ltd. (TSX-V: TAO), announces its filing of the Company's
unaudited consolidated interim financial statements and the accompanying
management's discussion and analysis for the period ending June 30, 2009.
Summary of selected financial results:
For the three months ended June 30, 2009, TAG reported production revenue
of $588,818 from the Company's 30.5% interest in the Cheal oil field, compared
to $2,060,824 in revenue for the same quarter last year. Production and
royalty costs amounted to $191,009, compared to $437,866 in costs for the same
quarter last year. The net loss recorded for the quarter was $170,055,
compared to net income of $790,954 for the three months ended June 30, 2008.
Revenue was affected by reductions in the oil price and a decrease in
production rates. The average oil price for the current quarter was $64 per
barrel (June 30, 2008: $131 per barrel) and the number of gross barrels of oil
sold during the quarter was 30,468 (June 30, 2008: 51,340 barrels sold).
Royalty and production costs for the quarter averaged under $20 per
barrel (June 30, 2008: $33 per barrel), resulting in a netback per barrel of
approximately $44 (June 30, 2008: $98 per barrel).
The Company ended the first quarter of the 2010 fiscal year debt-free,
with $6.9 million in cash and $7.72 million in working capital.
TAG Oil CEO Garth Johnson commented, "TAG is continuing to work towards
closing the acquisition of the remaining 69.5% interest in the Cheal Mining
License and Petroleum Exploration Permit 38748. In the meantime, TAG is
working closely with the receiver of Austral Pacific Energy Ltd. to further
reduce production costs and improve operational efficiencies of the field.
Following the official transfer of operatorship, the Company plans to
implement an optimization program on existing producing wells that could
improve field productivity. Currently the Cheal oil field is producing 380
barrels of light oil per day."
TAG Oil Ltd. (http://www.tagoil.com/) is a Vancouver, BC-based company
that owns a 30.5% interest in the Cheal oil discovery in the onshore Taranaki
Basin of New Zealand. The Company is poised to grow through full development
of the Cheal Mining License and exploration of its extensive onshore Taranaki
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 Oil. Actual results may vary materially from the
information provided in this release. As a result 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. Actual results may differ
materially from the results predicted, and reported results should not be
considered as an indication of future performance. Factors that could cause
actual results to differ from those contained in the forward-looking
statements are set forth in, but are not limited to, filings that the Company
and its independent evaluator have made, including the Company's most recent
reports in Canada under National Instrument 51-102 and in the United States
under Forms 20-F and 6K.
Neither 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.
For further information:
For further information: Garth Johnson, CEO, (604) 609-3350, Website: