TAG Oil Ltd · TSXV:TAO

TAG Oil — Investor Presentation (April 2016)

23 slides from TAG Oil's investor presentation, April 2016

  1. Slide 1: A proven leader in New Zealand's oil & gas industry

    TSX : TAO | OTCQX : TAOIF A proven leader in New Zealand’s oil & gas industry April 2016

  2. Slide 2: Disclaimer

    TSX : TAO | OTCQX : TAOIF Disclaimer BOEs The Company has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to “BOEs.” BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy eq

  3. Slide 3: An established operator controlling a dominant footprint

    TSX : TAO | OTCQX : TAOIF An established operator controlling a dominant footprint  A proven & prolific basin with significant untapped potential  Lightly explored across TAG’s acreage – Just over 300 wells drilled in the Taranaki Basin over the last 40 years  Infrastructure 100% owned and operat

  4. Slide 4: Foundation for Success

    TSX : TAO | OTCQX : TAOIF Foundation for Success Working Capital*  $15.3 million in cash with no debt  Fully funded in FY17 with a balanced work program Capital Structure*  62.2 million shares o/s; 67.4 million fully diluted Proved & Probable  5.2 mm BOE (90% oil) Reserves**  NPV10 AT value of

  5. Slide 5: Experienced Leadership Team

    TSX : TAO | OTCQX : TAOIF Experienced Leadership Team North American Expertise Global Experience Alex Guidi International oil and gas entrepreneur with 30 years leadership and executive experience in New Zealand and Australasia Chairman, TAG Oil Founder Toby Pierce Successful natural resource execut

  6. Slide 6: Financial Snapshot

    TSX : TAO | OTCQX : TAOIF Financial Snapshot As of March 31st FY 2015 FY 2014 FY 2013 FY 2012 FY 2011 (in 000’s except EPS BT) Production Revenue $ 53,737 $ 57,547 $ 44,591 $ 42,909 $ 13,088 Operating Profit 30,716 37,481 30,551 27,295 6,533 Net Operating CF 16,063 22,932 34,212 15,560 (1,154) Net I

  7. Slide 7: Positioning

    TSX : TAO | OTCQX : TAOIF Corporate Strategy Focus on Core Assets New Zealand Exploration New Zealand Growth  Drilling & recovery  Explore deep gas/ Opportunities Focus on Core Assets enhancements to boost New Zealand Exploration  Acquisitions condensates New Zealand Growth of existing New Zealan

  8. Slide 8: Strong Production Base

    TSX : TAO | OTCQX : TAOIF Strong Production Base © 2016 TAG Oil Ltd., www.tagoil.com 8

  9. Slide 9: Healthy Operating Netbacks

    TSX : TAO | OTCQX : TAOIF Healthy Operating Netbacks © 2016 TAG Oil Ltd., www.tagoil.com 9

  10. Slide 10: Cheal: Long-term upside from high-graded development drilling

    TSX : TAO | OTCQX : TAOIF Cheal: Long-term upside from high-graded development drilling  Discovered upside in up-hole sands; many wells have two or more stacked reservoir intervals with only 1 interval currently producing  Potential to double current resources by improved artificial lift technique

  11. Slide 11: Cheal: Development substantially de-risked

    TSX : TAO | OTCQX : TAOIF Cheal: Development substantially de-risked  36 wells drilled to date substantially de-risks future drilling  Permit-wide 3D seismic and a substantial drilling and workover inventory  Stacked reservoirs allow for efficient development, reduced costs, risk, and footprint 

  12. Slide 12: Cheal: Waterflood Analogy

    TSX : TAO | OTCQX : TAOIF Cheal: Waterflood Analogy Waterflood commences (June 2010)  Initial production declined from c. 350  43 months after commencing waterflood, production  Production at Dec 2015 was b/d to 23.2 b/d over 32 months had climbed to 167 b/d c. 117 b/d  8.4% decline per month 

  13. Slide 13: Cardiff: A large potential resource

    TSX : TAO | OTCQX : TAOIF Cardiff: A large potential resource  Stratford/Cardiff high spans ~12 km long by 3 km wide  Reserve size and deliverability potential are greater than shallow drilling program (Cheal) due to greater depth and over pressuring  Conservative recoverable resource estimate fo

  14. Slide 14: Sidewinder: Existing production and good exploration potential

    TSX : TAO | OTCQX : TAOIF Sidewinder: Existing production and good exploration potential  100% working interest across 22,600 acres with full 3D coverage  Sidewinder B Prospect is a stacked Mount Messenger Oil target  Deep gas potential and additional prospectivity across the acreage  100% owned

  15. Slide 15: Acquisitions: Leveraging Our Balance Sheet

    TSX : TAO | OTCQX : TAOIF Acquisitions: Leveraging Our Balance Sheet  TAG looking to acquire assets or partner with groups on assets within or slightly beyond our current financial capabilities.  Ideal Opportunities are: – Onshore and Conventional – A mix of natural gas and oil – A range of shallo

  16. Slide 16: 2017 Capital Program and Major Activities

    TSX : TAO | OTCQX : TAOIF 2017 Capital Program and Major Activities Field Activity April May June July August September October November December January February March Cheal E E7 Re-perforation 1 1 1 1 Cheal E E1 Rod pump 3 3 3 3 Cheal E Waterflood 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Cheal E Q1

  17. Slide 17: Why TAG Oil?

    TSX : TAO | OTCQX : TAOIF Why TAG Oil?  Experienced production, drilling and operations team  Undervalued based on its assets  Long life production with significant potential resources upside  Strategic holdings with high-impact potential  Low cost, high netback premium Brent oil and gas produc

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Why New Zealand?

    TSX : TAO | OTCQX : TAOIF Why New Zealand?  Favorable commercial terms and low royalties  Under-drilled, with world-class discovery potential  Proven oil reserves of 534 million barrels  Proven natural gas reserves of 7.3 TCF  Underexplored with fewer than 400 wildcat wells drilled  Energy-fri

  20. Slide 20: New Zealand's Oil and Gas Industry

    TSX : TAO | OTCQX : TAOIF New Zealand’s Oil and Gas Industry Source: Taranaki Report, March 2015 © 2016 TAG Oil Ltd., www.tagoil.com 20

  21. Slide 21: New Zealand's Oil and Gas Industry

    TSX : TAO | OTCQX : TAOIF New Zealand’s Oil and Gas Industry Source: Taranaki Report, March 2015 © 2016 TAG Oil Ltd., www.tagoil.com 21

  22. Slide 22: A profitable oil & gas producer committed to creating shareholder value

    TSX : TAO | OTCQX : TAOIF A profitable oil & gas producer committed to creating shareholder value Core Values:  People Matter Most  Have a ‘Will-Do’ Attitude  Community Counts  Work Safely  Celebrate Success © 2016 TAG Oil Ltd., www.tagoil.com 22

  23. Slide 23: Thank You

    TSX : TAO | OTCQX : TAOIF Thank You TAG Oil Ltd. Ashley Garnot, General Manager ashley.garnot@tagoil.com 1-604-282-6384 885 West Georgia Street, Suite 2040 Vancouver, BC V6C 3E8 Canada www.tagoil.com

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