TAG Oil Ltd (TAOIF)

[ariadndndough]

dana if this is your post on stockhouse its a dang good one and i agree.

We have enjoyed a good resurgence in the stock price with the last 3 announcements. I think the market may be ready to finally support this stock at this and higher levels "IF"


a) We get some decent flow rates from Cheal C1, C2 & A8. - Somewhat surprised that we haven't heard anything on these as I believe Cheal B5 started testing last. Cheal C1 & C2 are being tested (See pictures on Tag's Blog) but have no idea what is going on with A8.


b) There is no further delay in drilling. Hopefully the appeal date will pass without issue and Cheal B6 can be spud on December 16th as planned and Cheal B7 can follow thereafter. Also remember that Sidewinder 5 & 6 are due to spud in January once the new drill rig arrives.


c) A good update on the Sidewinder facility. Sidewinder 2 & 4 should have been connected in November so it is likely we could or should be an update sometime this month. It was good to see that TAG signed an agreement with Vector Gas for all their Sidewinder production for the next 3 years. At max capacity I belive this is over $50 million annually.


4) There is no notable falloff in production from the 1700 BOPD reported the other day. If these flow rates hold up then it really is a game changer for TAG as their production in oil alone is sure to be over 3000 BOPD once all other wells are tested and put into production. Annual revenues based on 3000 BOPD for oil & 5,000 BOEPD for gas will exceed $150 million. This is a tenfold increase over March 31, 2011 numbers.


Early 2012 could be really exciting if TAG can get drilling again and Apache ramps up on the East Coast. Once TAG drills their 2 sidewinder wells with the new rig, it will be moved to the East Coast to drill the 4 test wells Apache is planning on drilling. This should start in or around March so by May we should know whether this stock has the potential to go to the moon. Apache is rating their chance of success at 20% which is higher than normal estimations for exploration. (Article in New Zealand Herald.


GLTA


danat