VANCOUVER, Nov. 30 /CNW/ - New Zealand oil and gas producer TAG Oil Ltd. (TSX-V: TAO) has today filed its interim financial statements and the accompanying management's discussion and analysis for the six months ending September 30, 2009.
TAG Oil CEO Garth Johnson commented, "During the quarter, TAG achieved a number of company-transforming milestones, including closing the agreement to acquire the remaining interests in the Cheal oil discovery. This solidifies our position in the Taranaki Basin and gives TAG the potential to increase production immediately from the current 350 barrels of oil per day, and to increase recovery of reserves through work-over and fracturing, as well as providing ongoing discovery potential with a number of 3D-defined prospects in the surrounding acreage."
- Completed the acquisition of the remaining 69.5% interest in the
Cheal oil and gas discovery in October 2009
- Entered into an arrangement agreement to effect a business
combination with Trans-Orient Petroleum Ltd. whereby TAG will be the
- Entered into an agreement to acquire the remaining 66.67% interest in
PEP 38748, located within the Taranaki Basin discovery fairway
- Gross production from the Cheal oil field of 64,125 barrels of oil
and 59,084 gross barrels sold
- Recorded production revenue of $671,355 for the quarter and
$1,260,173 for the first six months of the 2010 fiscal year
- Reduced production costs to $19.82 per barrel produced, compared to
$51.51 per barrel for the same period last year
- Terminated the registration of the Company's common shares under
section 12(g) of the Securities Exchange Act of 1934, significantly
reducing administrative burdens and costs of being a US reporting
- Net loss for the quarter $1,910,879 (six months: $2,080,934),
resulting primarily from a $1,431,979 non-cash investment loss
previously accounted for in comprehensive loss
- Cash and cash equivalents of $6.63 million and working capital of
$7.26 million at period end, and no debt
"Further, upon completion of the highly complementary acquisition of Trans-Orient expected in mid-December 2009, TAG will expand its exploration portfolio in New Zealand by more than 2 million acres. This acreage not only contains numerous conventional high-impact prospects, it is a widespread and world-class unconventional fractured oil shale frontier," explained Mr. Johnson. "Independent reports by qualified reserves evaluators for Trans-Orient dated September 2007 and September 2008 have estimated prospective resources of over 14 billion barrels of original oil-in-place, based on approximately 10% of Trans-Orient's land base."
The term "prospective resources" refers to those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the resources will be discovered. If discovered there is no certainty that it will be commercially viable to produce any of the resources.
The term "undiscovered resources" refers to those quantities of oil and gas estimated, on a given date, to be contained in accumulations not yet discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically viable or technically feasible to produce them.
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.
SOURCE TAG Oil Ltd.
For further information: For further information: Garth Johnson, CEO, (604) 682-6496, Website: http://www.tagoil.com