TAG Oil's short-term goals are to increase revenues from our existing discoveries through more streamlined production and reduced costs.
TAG Oil's leadership team has demonstrated success implementing the company's strategy, building significant shareholder value and positioning the Company for significant growth over the next two to three years.
Ongoing plan components such as production, development, technology, prospect generation, overlooked opportunities, high-impact exploration and other new ideas-as well as further acquisitions-are all part of the forward-looking strategy and long-term vision to become New Zealand's leading energy company.
TAG Oil's short-term strategy is straightforward: to fully develop the Cheal oil discovery, increasing cash flow while allowing TAG to grow with minimal share dilution.
Simultaneously, but with a longer view, we continue to leverage technology to mine unconventional sources for data and prospects in pursuit of oil and gas plays in the fractured oil shales of the East Coast Basin.
As a result, TAG Oil plans to create an oil and gas reserve base that can both contribute to and benefit from the world's insatiable demand for energy.
COMPANY WEB PAGE
http://tagoil.com/
SHARE STRUCTURE
TAG Oil Shares Outstanding: 54,443,234
Fully Diluted Shares: 57,658,520
Stock Options [7/05/16~C$1.25 - 7.15] 3,215,286
Exploring for Oil and Gas in New Zealand
New Zealand is an economically developed country where TAG Oil can continue to explore, develop and produce, enjoying the benefits of an international oil and gas portfolio without the political and economic disadvantages associated with many other parts of the world. New Zealand's permitting regime and fiscal terms are ranked among the best in the world, oil produced is sold at premium world prices, and there is a thriving domestic natural gas market.
Many basins exhibit dramatic oil and gas seeps, and exploration data reveals multiple structures with hydrocarbon potential. Encouraging discoveries have also been made in the offshore Canterbury and Great South Basins where ExxonMobil and Origin Energy are exploring. Start-up Kea Petroleum is in the preliminary stages of exploring in the Northland Basin, a remote area once explored by ConocoPhillips.
For 40 years, Taranaki's giant offshore Maui Field has dominated the gas market in New Zealand by meeting nearly 90% of demand at costs far below world prices. However Maui is in rapid decline. The Pohokura gas field came on-stream in 2006, replacing some of the declining production, but there is no doubt that new gas field discoveries are needed soon. With strong public resistance to coal-fired power plants, hydroelectric dams and nuclear-power stations, no viable alternative to natural gas currently exists in New Zealand. This presents a unique opportunity for exploration companies like TAG Oil to create value when gas demand is at its maximum and energy alternatives are at a minimum.
For 40 years, Taranaki's giant offshore Maui Field has dominated the gas market in New Zealand by meeting nearly 90% of demand at costs far below world prices. However Maui is in rapid decline. The Pohokura gas field came on-stream in 2006, replacing some of the declining production, but there is no doubt that new gas field discoveries are needed soon. With strong public resistance to coal-fired power plants, hydroelectric dams and nuclear-power stations, no viable alternative to natural gas currently exists in New Zealand. This presents a unique opportunity for exploration companies like TAG Oil to create value when gas demand is at its maximum and energy alternatives are at a minimum.
For the more information on New Zealand oil and gas exploration, as well as the latest news, maps and publications, please access New Zealand's Crown Minerals website.
TAG OPERATIONS
Cheal Production
TAG Oil controls a 100% interest in Petroleum Mining Permit 38156-S which contains the Cheal oil discovery. The relatively shallow discovery has cumulative production of more than 500,000 barrels of oil to date, with remaining proven and probable reserves of approximately 530,000 barrels of oil equivalent.
Oil produced from Cheal is a high-quality, waxy low-sulfur oil that sells on the Tapis market at a premium to West Texas Intermediate due to its low sulfur content, and is sold primarily to Japan, Korea and Australia.
Completed in June of 2006, the Cheal facility is capable of handling up to 2000 bbls/d of oil. Brought online at a cost of US$36,000,000, the facility includes a gas-fired electricity generator that converts solution gas to electricity for use on-site, with all excess sold into the national grid.
In addition to planned increases in production from the existing six Cheal wells and overall recovery factor, TAG Oil has already reduced operating costs to under US$19 per barrel, some of the lowest operating costs in Australasia down nearly 70% from more than $50 per barrel under its previous operator.
TAG Oil's Commitment to Exploration and Technology
TAG Oil's exploration portfolio provides potential for significant discoveries, combining lower risk, conventional hydrocarbon prospects with producing fields and the encouraging oil-shale source rocks across the East Coast frontier. While focusing on mature, high impact 3-D defined prospects in the Taranaki discovery fairway-look-a-like to TAG Oil's Cheal field and others in the immediate area-exploration in the East Coast Basin is initially targeting fractured oil shale, with conventional prospects maintained as secondary targets.
TAG is a first-mover in New Zealand, at the forefront of deploying modern drilling and hydraulic fracturing techniques to our East Coast shale prospects. Technology driven unconventional exploration plays-particularly targeting oil and gas rich shale source rocks-have proven highly successful across North America and around the world. Experts predict that these new unconventional exploration technologies will continue to unlock massive new oil and gas reserves, several times greater than conventional reserves, from rich fractured shale source rocks.
CHARTS
"What an investor sees when looking at a P&F chart is the underlying supply and demand of the security. The columns of X's illustrate demand exceeding supply (rally), and the columns of O's illustrate supply exceeding demand (decline)." [Explanation from Stock Charts]
TAG OIL Ltd. FILINGS & PUBLIC DOCUMENTS with SEDAR
http://www.sedar.com/DisplayProfile.do?lang=EN&issuerType=03&issuerNo=00007479
ENERGY SITES
