Tag Oil Ltd · TSXV:TAO
Tag Oil — Investor Presentation (May 2018)
22 slides from Tag Oil's investor presentation, May 2018
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 • Focused on production growth from proven assets Spring 2018
Slide 2: Disclaimer
TSX : TAO | OTCQX : TAOIF Disclaimer All oil and natural gas reserves and resources information, including estimated production rates, contained in this presentation have, unless otherwise stated, been prepared and presented in accordance with National Instrument 51-101 - Standards of Disclosure for
Slide 3: Disclaimer (continued)
TSX : TAO | OTCQX : TAOIF Disclaimer (continued) Resource Estimates (continued) The significant positive factors that are relevant to the resource estimates are: •Proven production in close proximity; •Proven commercial quality reservoirs in close proximity; •Oil and gas shows while drilling wells;
Slide 4: An established onshore operator with a balanced portfolio
TSX : TAO | OTCQX : TAOIF An established onshore operator with a balanced portfolio ▪ One of New Zealand’s most experienced operators with over 50 wells drilled ▪ Focus on low cost onshore operations ▪ A proven basin with significant exploration potential – Lightly explored across TAG’s acreage ▪ Hi
Slide 5: Foundation for Success
TSX : TAO | OTCQX : TAOIF Foundation for Success Working Capital(1) ▪ C$3.3 million in cash with no debt ▪ C$9.8 million in working capital ▪ Cash flow funded in FY2018/19 through with a balanced work program ▪ US$10 million revolving credit facility signed in April 2018 Capital Structure(1) ▪ 85.3
Slide 6: Experienced Leadership Team
TSX : TAO | OTCQX : TAOIF Experienced Leadership Team Toby Pierce Experienced natural resource executive with expertise in operations, capital markets, investment banking and M&A; Geologist Chief Executive Officer, BSc, MBA Henrik Lundin Former Senior Reservoir Engineer for Lundin Petroleum Ltd. in
Slide 7: Strong Production Base
TSX : TAO | OTCQX : TAOIF Strong Production Base Production stabilized ~1,250 boe/d Source: TAG’s quarterly results available on SEDAR.com © 2017 TAG Oil Ltd., www.tagoil.com 7
Slide 8: Strong Operating Netbacks
TSX : TAO | OTCQX : TAOIF Strong Operating Netbacks Source: TAG’s quarterly results available on SEDAR.com © 2017 TAG Oil Ltd., www.tagoil.com 8
Slide 9: Cheal: Long-term Upside from High-Graded Development Drilling
TSX : TAO | OTCQX : TAOIF Cheal: Long-term Upside from High-Graded Development Drilling ▪ Core producing area for TAG in New Zealand ▪ 100% owned infrastructure allows for low cost commercialization – throughput capacity allows for rapid expansion ▪ Remaining upside present in discovered up-hole san
Slide 10: Cheal: Development Substantially De-risked
TSX : TAO | OTCQX : TAOIF Cheal: Development Substantially De-risked ▪ 39 wells drilled to date provide excellent well control and subsurface understanding ▪ Permit-wide 3D seismic and a substantial drilling and workover inventory ▪ Enhanced Oil Recovery (“EOR”) waterflood pilot program has demonstr
Slide 11: Cheal: Waterflood Results from the A3X Well
TSX : TAO | OTCQX : TAOIF Cheal: Waterflood Results from the A3X Well 400 Waterflood commences (June 2010) 350 ▪ Initial production declined from ~350 ▪ 43 months after commencing waterflood, production ▪ Production at May 2016 was ~97 bpd to 23.2 bpd over 32 months had climbed to ~160 bpd bpd 300 ▪
Slide 12: Cardiff – Material Appraisal Opportunity
TSX : TAO | OTCQX : TAOIF Cardiff – Material Appraisal Opportunity ▪ Cardiff-3 well successfully flow tested in December 2016 following extended shut in after drilling – long delay believed to have allowed the well to clean up near wellbore damage – testing ongoing ▪ Kapuni field located 18 km away
Slide 13: Sidewinder: Oil & Gas Production with Appraisal Upside
TSX : TAO | OTCQX : TAOIF Sidewinder: Oil & Gas Production with Appraisal Upside ▪ 100% working interest across 22,600 acres with full 3D coverage ▪ Sidewinder B prospect is a stacked Mount Messenger Sands oil target – tested 254 bbl/d over 24 hour period – additional wells to potentially bring onli
Slide 14: Puka Block: Proven Production with Large Exploration Upside
TSX : TAO | OTCQX : TAOIF Puka Block: Proven Production with Large Exploration Upside ▪ In June 2016, TAG announced the acquisition of a 70% interest in PEP 51153 containing the Puka oil field and Pukatea oil prospect – NZ$250,000 acquisition cost out of liquidation from Kea Petroleum ▪ The Puka fie
Slide 15: Supplejack Field – Waiting to be put online
TSX : TAO | OTCQX : TAOIF Supplejack Field – Waiting to be put online ▪ On November 8, 2016, TAG announced the successful testing of the Supplejack-1 well – flow rates of up to 7.2 MMcf/d (1,200 boe/d) through 32/64” choke during seven day test – well pressures remained at over 1,000 psi ▪ The well
Slide 16: PL 17 – First step out of New Zealand and into Australia
TSX : TAO | OTCQX : TAOIF PL 17 – First step out of New Zealand and into Australia ▪ PL 17 is located in the Surat Basin of Australia, covering an area of 104 km2 (25,700 acres) – ~20 km from the Moonie Oil Field which has produced 27 mmb to date ▪ Two existing discoveries on the block which have pr
Slide 17: Why TAG Oil?
TSX : TAO | OTCQX : TAOIF Why TAG Oil? ▪ Experienced production, drilling and operations team ▪ Positioned to grow at current and higher oil prices ▪ Long life production with potential resources upside ▪ Strategic holdings in stable, secure countries with very good fiscal terms ▪ Low cost, high net
Slide 18: Appendix
Appendix
Slide 19: New Zealand's Oil and Gas Industry
TSX : TAO | OTCQX : TAOIF New Zealand’s Oil and Gas Industry Source: Taranaki Report, March 2015 © 2017 TAG Oil Ltd., www.tagoil.com 19
Slide 20: 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
Slide 21: TSX : TAO | OTCQX : TAOIF
TSX : TAO | OTCQX : TAOIF © 2017 TAG Oil Ltd., www.tagoil.com 21
Slide 22: Thank You
TSX : TAO | OTCQX : TAOIF Thank You TAG Oil Ltd. Chris Beltgens, VP, Corporate Development cbeltgens@tagoil.com 1-604-282-6372 885 West Georgia Street, Suite 2040 Vancouver, BC V6C 3E8 Canada www.tagoil.com