Sharechat Logo

TAG Oil's earnings leap as wells come on-stream

Friday 17th February 2012

Text too small?

Canadian oil and gas producer TAG Oil, which operates onshore Taranaki and is exploring “unconventional” shale field prospect in the eastern North Island, has effectively quadrupled production revenues in the first nine months of the current financial year.

TAG told the Toronto Stock Exchange its production revenue was C$12.98 million in the three months to Dec. 31, and C$26.21 million for the first nine months of the year, compared with C$3.85million and C$8.08 million respectively in the previous financial year.

This reflects production from a range of wells brought to market in recent months, with the company drilling 12 successful wells in a row in its Cheal prospect, onshore Taranaki.

The company said it was now drilling a further two wells at Cheal, and that it was “approaching our first four unconventional wells soon to be drilled in the East Coast Basin,” in partnership with Apache Corporation of Texas.

TAG’s oil production was higher than forecast because of “anomalous recent high rate results” from two of its Cheal wells, and that investment in infrastructure to link the company’s various producing wells together would “allow for drilling success at TAG’s high-impact deep prospects such as Cardiff and Hellfire to accelerate commercialisation in the event of a discovery.”

At Dec. 31, the company remained debt free, with working capital of C$67 million.

Net profit for the nine months was C$10.9 million, before deducting C$5.4 million in non-cash, stock-based compensation.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports