VANCOUVER, Aug. 14, 2019 /CNW/ - TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) is pleased to report its first quarter results for the interim period ending June 30, 2019, which includes a 32% increase in revenues generated from oil and gas sales along with a 16% increase in net daily production.
Q1 2020 HIGHLIGHTS
- At June 30, 2019, the Company had $7.2 million (March 31, 2019: $1.9 million) in cash and cash equivalents and $6.4 million (March 31, 2019: $0.06 million) in working capital.
- Average net daily production increased by 16% for the quarter ended June 30, 2019, to 1,413 boe/d (79% oil) from 1,218 boe/d (80% oil) for the quarter ended March 31, 2019.
- Revenues generated from oil and gas sales increased by 32% for the quarter ended June 30, 2019, to $9.8 million from $7.4 million for the quarter ended March 31, 2019.
- Operating netbacks increased by 52% for the quarter ended June 30, 2019, to $44.48 per boe compared with $29.18 per boe for the quarter ended March 31, 2019.
- Capital expenditures totaled $1.0 million for the quarter ended June 30, 2019, compared to $1.4 million for the quarter ended March 31, 2019.
- Further information can be found in the Company's financial statements and management's discussion and analysis for the quarter ended June 30, 2019, which is filed under TAG's SEDAR profile at www.sedar.com.
SALE OF NEW ZEALAND ASSETS
On August 1, 2019, TAG and Tamarind Resources Pte. Ltd. ("Tamarind") received final approval from New Zealand Petroleum and Minerals for the sale and transfer of TAG's operatorship to Tamarind of its New Zealand operations. TAG and Tamarind are working diligently to close the transaction on or around the end of August.
Additional information about the Transaction can be found in the management information circular dated November 30, 2018, which is filed under TAG's SEDAR profile at www.sedar.com.
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is an international oil and gas explorer with established high netback production, development and exploration assets, including production infrastructure in New Zealand and Australia. TAG Oil currently has 85,239,252 shares outstanding.
Cautionary Note Regarding Forward-Looking Statements and Disclaimer
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. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All estimates and statements that describe the Company's plans relating to operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary materially from the information provided in this release, and there is no representation by TAG that the actual results realized in the future will be the same in whole or in part as those presented herein.
Also included in this new release are forward-looking statements regarding TAG's expectations regarding the ability to complete, and the anticipated results of, the transaction. In making the forward-looking statements in this release, TAG has applied certain factors and assumptions that are based on information currently available to TAG as well as TAG's current beliefs and assumptions made by TAG, including that TAG will be able to complete the transaction on the timelines expected, or at all.
Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG's most recently filed reports in Canada under National Instrument 51-101, and the information circular that TAG will file in connection with the Meeting, which can be found under TAG's SEDAR profile at www.sedar.com. TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors change.
Disclosure provided herein in respect of boe (barrels of oil equivalent) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf:1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE TAG Oil Ltd.
For further information: Chris Beltgens, Vice President, Corporate Development, Phone: 1-604-682-6496, Email: [email protected], Website: http://www.tagoil.com/, Blog: www.tagoil.com/media-center/tag-oil-blog/