Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

TAG Oil's revenues increase 11% in second quarter

Revenues from oil and gas sales were $6mln for the three months to end September
TAG Oil's revenues increase 11% in second quarter
Average daily production in the quarter was 1,151 boe/d down from 1,169 boe/d in the June quarter

New Zealand and Australia-focused TAG Oil Ltd (TSE:TAO) said it had a busy second quarter, which saw  it increase revenues by 11%  and lay the groundwork for an oil price recovery.

Revenues from its  oil and gas sales were $6mln for the three months to end September  versus $5.4mln in the June quarter this year - an increase of 11%.

This was due to a 19% increase in average Brent oil prices and less than 1% increase in average net daily oil production.

Average daily production decreased by 2% for the quarter ended September 30, 2017 to 1,151 boe/d (78% oil) from 1,169 boe/d (77% oil) for the June quarter.

Operating netback at the company increased by 34% for the quarter to $30.95 per boe (barrel of oil equivalent) compared with $23.09 per boe for the preceding quarter.

"The company had a busy fiscal quarter in which we continued to lay the ground work for growth with the recovery in oil prices," said Toby Pierce, TAG Oil's chief executive.

"We are eagerly awaiting results from our 3D seismic acquisition at PL17 and increased production from our ongoing waterflood program.

"Assuming a continued improvement in Brent oil prices, we expect that our revenue operating cashflow and netbacks will continue to grow into calendar 2018.

"Finally, our focus for the remainder of the year will be on increasing our production and continuing to prepare for drilling opportunities."

As at September 30, Tag had $2.7 million in cash and equivalents compared to $12.2 million at the end of June this year.

It also had $8.7mln in working capital versus $15.2 on June 30.

View full TAO profile View Profile

Tag Oil Timeline

September 07 2018

Related Articles

range resources well in trinidad
August 16 2018
Infrastructure upgrades at Range’s Beach Marcelle oil field are underway, while two new wells at the project are due to be drilled later this year
Gas plant
July 05 2018
West Rustavi is not Block’s only play in Georgia, it has stakes in two other licences, but it is the potential headline grabber
oil and gas operations
May 23 2018
An acreage award in the UK 30th Offshore Licensing Round expands the group's flagship Liberator field

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use