|By PR Newswire||
|February 15, 2013 12:37 PM EST||
Conference Call to Discuss Third-Quarter Results and Operations Update
VANCOUVER, Feb. 15, 2013 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), today announced its financial results for the quarter ended December 2012, as well as access instructions for a telephone conference call to discuss Q3 results and operations.
Please call in ten minutes before the conference call starts and stay on the line (an operator will be available to assist you should you have questions of management during the call). In addition questions can be forwarded by e-mail in advance in the e-mail address provided below.
|Date||Tuesday, February 19, 2013|
|Time||11:00 a.m. Pacific Time|
|Toll-Free Dial-in #||1-800-706-7749|
|Regular Dial-in #||1-617-614-3474|
|E-mail questions to:||[email protected]|
Q3-2013 and Recent Operating Highlights
- TAG Oil's production revenue increased 23% to $32.29 million for the nine months ended December 31, 2012, compared to $26.21 million in the comparable period last year;
- During Q3-2013 TAG produced an average of 1,727 BOE per day with a production revenue increase by 13% to $10.85 million compared to $9.62 million in Q2-2013;
- The Company generated a net profit for the quarter of $2.64 million (nine months: $9.40 million) before deducting $2,004,076 (nine months: $4,344,751) non-cash share-based compensation;
- TAG remains debt free with approximately $72 million in cash at the date of this report;
- TAG sold 86,687 barrels of oil during the last quarter (nine months: 256,745) at an average price of $109.97 per barrel (nine months: $108.80 per barrel);
- TAG sold 47,104 BOE of gas during the quarter (nine months: 159,775 BOE) at an average price of $4.79 per mcf (nine months: $4.55 per mcf);
- Production infrastructure expansion is on track for completion by March 31, 2013 as planned, to allow unrestricted production from 25 wells and any future wells;
- Commenced a 13-well Taranaki Basin drilling campaign, starting with the Sidewinder-5, Sidewinder-A6, Sidewinder-A7 wells;
- Secured rig to drill the Cardiff prospect, a large liquids'-rich gas target in the Kapuni Formation with independent mid range resource potential estimated by Sproule International of 214.5 Bcf and 12.8 million barrels of associated condensate;
- TAG Oil was awarded four attractive onshore Taranaki exploration blocks all within proximity of our Cheal and Sidewinder infrastructure;
- TAG retains a 100% interest in its East Coast Basin permits and receives cash payment through an early termination of the farm-out agreement with Apache Corporation.
Liquidity and Financial Summary
At the date of this report, TAG is debt free with approximately $72 million in cash on the balance sheet. Production revenue for the quarter was $10.85 million (nine months: $32.29 million) compared to $12.98 million (nine months: $26.21 million) for the comparable quarter last year, and the Company generated a net profit for the quarter of $2.64 million (nine months: $9.4 million) before deducting $2,004,076 (nine months: $4,344,751) non-cash share-based compensation.
TAG currently has 59,637,623 common shares outstanding and 63,267,386 common shares outstanding on a fully diluted basis.
Taranaki Basin Operations
TAG finished Q3-2013 with Sidewinder-5 encountering approximately 6 meters of net pay to start off calendar 2013's Taranaki drilling program. SW-5 has been completed for production and will be tied in to the Sidewinder production facility in early March, after Sidewinder-6 and 7 have been drilled.
Summary of TAG well status
|Site||Producing *||Behind pipe|
|Cheal A||A3, A7, A9, A10, A11, A12||A1, A4, A8|
|Cheal B||B3, B4ST, B6, B8||B1, B2, BH1, B5, B7|
|Cheal C||C1, C2, C3, C4**|
|Sidewinder||SW-A2, SW-A3, SW-A4||SW-A1, SW-A5**|
*Cheal-A7 and A12 and Cheal-A9, A10, A11 and A12 are all producing into
small diameter temporary production lines that inhibit optimal
production. Back pressure testing on the individual wells indicate these wells will produce more optimally using their own production pipelines
upon completion of the Cheal infrastructure upgrades.
|** Re-completed and/or awaiting production test|
TAG's infrastructure project is scheduled to be completed on March 31, 2013 allowing the Company to become completely self-sufficient in producing, processing and marketing all oil and gas it produces. TAG can then initiate production on all oil and gas wells that have been drilled but are not yet producing, along with any additional production arising from future successful wells drilled.
Cheal Oil and Gas Field - 100% Interest
TAG expects continued growth through the following activities:
Continued exploration and development drilling: pre-emptive right on the
Nova-1 drilling rig ensures access to services;
Infrastructure enhancement project and new gas pipeline at Cheal ensures
maximum value is achieved from all discoveries, making TAG completely
self-sufficient for oil and gas production, processing and marketing;
Drilling the Cardiff liquids-rich deep gas target: Cardiff has an
independent resource potential estimated by Sproule International of
214.5 Bcf and 12.8 million barrels of associated condensate and the
Company anticipates drilling Cardiff in mid-C2013; and
- A detailed geotechnical evaluation of all untested zones in the Cheal area: Many TAG wells drilled in the last two years encountered multiple pay horizons. Good production practice dictates depleting one zone at a time in these multi-zone wells, and the study will determine if an accelerated infill drilling program is economically justified to maximize value of these to-date untested zones.
Sidewinder Oil and Gas Field - 100% Interest
During the quarter, the Company was granted consent by the New Plymouth District Council allowing TAG to drill up to four new wells within the Sidewinder Oil and Gas Field. TAG immediately completed site construction, and to the date of this report, has drilled the Sidewinder-A5 well and spudded Sidewinder-A6.
TAG intends to also drill Sidewinder-A7 and Sidewinder-A8 using its proprietary 3D seismic, combined with new 2D seismic that was acquired during fiscal 2012. The Sidewinder Permit is lightly explored and significant exploration potential remains in both shallow and deeper targets located within the Permit area. Planned operations are as follows:
Drill 4 new exploration wells, inclusive of Sidewinder-5 that has
already been drilled during the quarter; and
- Drill Sidewinder's deeper liquids-rich gas targets such as the Hellfire prospect where TAG's technical team has used 3D seismic to interpret Hellfire as a large high-impact prospect with significant resource potential.
Taranaki Blocks Offer Permits - Shallow Drilling
TAG Oil, along with its joint venture partner East West Petroleum, will utilize the extensive 2D and 3D seismic coverage to drill a minimum of nine wells in C2013 on the three joint ventured permits as follows:
||Permit Name/Interest||# of Wells||
|PEP 54877||East Cheal (TAG 70%)||5||
||South Cheal (TAG 50%)||3||
||North Cheal (TAG 50%)||1||
Taranaki Blocks Offer Permits - Deep Drilling
Heatseeker is a 3D defined, drill ready deep gas and condensate prospect that has similar geological features to the adjacent landmark Kapuni gas/condensate field. Heatseeker is anticipated to be drilled late in calendar 2013.
|Permit Number||Permit Name/Interest||# of Wells||
|PEP 54873||Heatseeker (TAG 100%)||1||
Eocene > 4000m
East Coast Basin Operations
On January 31, 2013, TAG Oil and Apache Corp. concluded an agreement for early termination of the Farmout Agreement related to PEP's 38348, 38349 and 50940. The main highlights of the agreement are:
Apache paid TAG a lump sum payment to satisfy its obligations related to
funding Phase 1 operations under the Farmout Agreement;
TAG will retain all assets developed under the agreement, including all
seismic and technical work completed by the Joint Venture; and
- TAG retains a 100% interest in the above mentioned East Coast Basin permits.
The Company continues to focus on consultation and engagement while progressing its operational planning for upcoming drilling activities.
The Company anticipates beginning drilling the first two wells of the Phase I drilling program in April 2013. These wells will test several high-impact play objectives including the Waipawa and Whangai source rocks, utilizing conventional vertical drilling techniques similar to those used by TAG over many years in its successful Taranaki Basin operations.
In addition, TAG is currently preparing to drill one shallow stratigraphic well on PEP 50940 as part of its work program commitments in the East Coast Basin. The stratigraphic slim-hole well is similar in design and operations to a farmers water well. The 450 meter planned depth will facilitate the gathering of geological rock data before being plugged and abandoned.
Canterbury Basin Operations
During the quarter, TAG acquired and processed an 80 kilometre 2D seismic survey within the Company's new frontier exploration permit ("PEP 52589") situated both offshore and onshore the Canterbury Basin, South Island, New Zealand. Interpretation of the seismic data is underway to identify potential well locations. The Canterbury Basin is an under-explored frontier area with many geological similarities to the productive Taranaki Basin.
Historical drilling results in Canterbury indicate good exploration potential with two gas/condensate discoveries drilled in the offshore portion of the Basin, one of which tested in excess of 10 million cubic feet of gas and 2,300 barrels of oil per day. Although these discoveries were uneconomical due to the high cost of offshore development, more importantly, the gas/condensate accumulations found in these wells confirm that generation, migration and entrapment of hydrocarbons occur in the Basin, indicating additional accumulations are likely to be present.
Offshore drilling scheduled by majors such as Anadarko and Origin Energy in 2013/2014 allow TAG to focus initially onshore while holding considerable upside related to its control over the onshore and near shore acreage directly updip of the scheduled deep water offshore wells.
Expenditures on the Company's oil and gas properties during Q3 of the 2013 fiscal year amounted to approximately $21 million, primarily invested in the Company's Taranaki operations for drilling, testing, workovers and infrastructure as follows:
|Cheal Field||$19.54 million|
|Sidewinder Field||$0.29 million|
|East Coast, Taranaki Offshore, Canterbury||$1.17 million|
TAG Oil has filed its third quarter December 31, 2012, condensed consolidated unaudited interim financial statements and management discussion and analysis with the Canadian Securities Administrators. Copies of these documents can be obtained electronically at http://www.sedar.com, or for additional information please visit TAG Oil's website at http://www.tagoil.com/.
TAG Oil Ltd.
TAG Oil Ltd. ( http://www.tagoil.com/) is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. With 100% ownership over all its core assets, including oil and gas production infrastructure, TAG is enjoying substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact exploration prospects identified across more than 2,953,810 net acres of land in New Zealand.
In the East Coast Basin, TAG will explore and potentially develop the major unconventional resource potential believed to exist in the tight oil source-rock formations that are widespread over the Company's acreage. These oil-rich and naturally fractured formations have many similarities to North America's Bakken source-rock formation in the successful Williston Basin.
TAG Oil has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to "BOE's". BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Cautionary Note Regarding 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. 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. These statements are based on certain factors and assumptions including;
A. all estimates and statements that describe the Company's objectives, goals, production rates, infrastructure capacity and or future plans relating to the seismic, testing, work over and drilling programs in the Taranaki and East Coast Basins; and
B. those relating to TAG Oil's exploration and development of its oil and gas properties within the Cheal and Sidewinder project areas, the production and establishment of additional production of oil and gas in accordance with TAG Oil's expectations at Cheal and Sidewinder, well performance, drilling the completion of new infrastructure at Cheal and Sidewinder, the increase of cash flow from new production, expected growth, results of operations, performance, prospects, evaluations and opportunities.
All such statements are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, availability of financing and changes in the regulatory and taxation environment. These forward-looking statements are based on certain factors and assumptions, including factors and assumptions regarding the management's views on the oil and gas potential in the Permits, well performance, the success of any operations, completing infrastructure and the costs necessary to complete the operations. While TAG Oil considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Actual results may vary materially from the information provided in this release, and 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.
TAG Oil is involved in the exploration for and production of hydrocarbons, and its property holdings with the exception of the Cheal and Sidewinder project areas are in the grass roots or primary exploration stage. Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. There is no certainty that the expenditures incurred on TAG Oil's exploration properties will result in discoveries of commercial quantities of hydrocarbons. TAG Oil's future success in exploiting and increasing its current reserve base will depend on TAG Oil's ability to develop its current properties and on its ability to discover and acquire properties or prospects that are producing. There is no assurance that TAG Oil's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas.
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, 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.
SOURCE TAG Oil Ltd.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 30, 2015 09:00 AM EST Reads: 505
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 30, 2015 08:00 AM EST Reads: 562
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 30, 2015 07:00 AM EST Reads: 466
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Nov. 30, 2015 07:00 AM EST Reads: 381
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 30, 2015 06:00 AM EST Reads: 386
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Nov. 30, 2015 05:30 AM EST Reads: 493
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 30, 2015 04:00 AM EST Reads: 607
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNub’s Data Stream Network.
Nov. 30, 2015 04:00 AM EST Reads: 348
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Nov. 30, 2015 03:45 AM EST Reads: 438
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Nov. 30, 2015 02:00 AM EST Reads: 448
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Nov. 30, 2015 02:00 AM EST Reads: 450
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Nov. 30, 2015 12:00 AM EST Reads: 450
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 29, 2015 02:00 PM EST Reads: 488
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 29, 2015 01:00 PM EST Reads: 359
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 29, 2015 12:45 PM EST Reads: 423
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 29, 2015 12:30 PM EST Reads: 429
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Nov. 29, 2015 12:00 PM EST Reads: 532
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 29, 2015 11:45 AM EST Reads: 337
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Nov. 29, 2015 09:45 AM EST Reads: 456
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 29, 2015 09:15 AM EST Reads: 347