TAG Oil Announces FY2017 Capital Budget and Guidance

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[{"type":"text","content":"TAG Oil Announces FY2017 Capital Budget and GuidanceVANCOUVER, BC / ACCESSWIRE / April 14, 2016 / TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) announces that its capital budget for the Company's 2017 fiscal year (April 1, 2016 to March 31, 2017) will be approximately $7.6 million, which will be funded entirely by forecasted cash flow and working capital on hand. A further $4.6 million of incremental capital expenditures are contingent on oil prices improving significantly. While oil prices appear to be strengthening since hitting 12-year lows earlier this year, TAG's primary goal is to conservatively manage its balance sheet with plans to end its fiscal 2017 with at least $10 million in cash on hand.\n\nBudget Detail\n\nThe FY2017 capital budget of $7.6 million will focus primarily on low-expenditure, in-field production optimization opportunities and other necessary activities that are core to its business. These opportunities have been identified through an extensive ongoing geotechnical and engineering review of the Company's Taranaki development and exploration acreage, and include the following:\n- Increasing production through the implementation of a water-flood program at the Cheal A, B and E-Sites, the installation of a rod pump in the Cheal-E1 well, and the reactivation of several shut-in wells.\n- Meeting various permit obligations, including the acquisition and reprocessing of seismic data on the Cheal G and Wai-iti permits. This will allow TAG to properly select infill and exploration drilling opportunities in due course.\n- Undertaking abandonment and rehabilitation activities associated with the East Coast acreage. As part of TAG's commitment to New Zealand and stakeholder relations, the Company is ensuring that it remains current on these obligations.\nThe FY2017 capital budget may also include approximately $4.6 million of discretionary activity, which will be continuously reviewed and revised depending on the results of the activities outlined above, economic analysis and changing economic conditions. This includes potentially constructing two drilling pads for future exploration opportunities and drilling a Sidewinder North (PEP 57065) exploration well in FQ4/17. \nGuidance\n\nTAG is estimating that FY2017 revenue from operations will be approximately $22 million, with production averaging approximately 1,200 BOE/D...

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