Business
TAG Oil Reports Q3 Results
VANCOUVER, BC / ACCESSWIRE / February 16, 2016 / TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF),...
About this update from Tag Oil Ltd
[{"type":"text","content":"TAG Oil Reports Q3 ResultsVANCOUVER, BC / ACCESSWIRE / February 16, 2016 / TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to report the third quarter results for the fiscal year ending March 31, 2016, in which the Company was able to increase its average net daily oil production by 2% to 945 bbl/d from the previous quarter. This increase is primarily due to the Cheal-A1, B5 and B1 wells returning to production during the quarter following the completion of the workover program. Oil and gas production remains relatively stable following the quarter with average daily gross production having reached as high as 1,811 BOE/d (71% oil) in January, and has recently averaged above 1,500 BOE/d.\n\nTAG continues to take steps towards more efficient operations, in light of the continued uncertainty in commodity prices, mainly by deferring the majority of its exploration focused capital program. TAG has also relinquished several existing permits that had either large commitments or were no longer core to the Company's plan. In addition, management remains committed to reducing operating and administrative costs wherever possible.\n\nToby Pierce, TAG Oil's CEO, commented, \"Despite a very weak oil price in Q3, we managed to offset the drop in revenues somewhat through growth in production. We are planning minimal capex spend in Q4 and are now working on the budgeting process for next year. Our primary goal is to preserve our capital through the low oil price environment, and we are on track to exit fiscal 2017 with at least C$10 million in cash on hand. Our production has held up, but with much lower oil prices we expect Q4 revenues and cash flow to be lower. Further, with the significant drop in commodity prices our reserves will likely be materially lower this fiscal year as well. Despite this, I am very comfortable with our asset base, our portfolio of opportunities and our strong balance sheet. TAG is committed to protecting shareholder value and positioning the Company for the return of higher commodity prices. Finally, I'd like to thank our team for working safely and diligently with a limited budget and for focusing on reducing costs across the business.\"\n\nTHIRD QUARTER FINANCIAL AND OPERATING HIGHLIGHTS\n- At December 31, 2015, the Company had $15.9 million in cash and cash equivalents and $22.3 million in working capital....