VANCOUVER, BC / ACCESSWIRE / April 7, 2016 / TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) is pleased to report preliminary results for its fiscal 2016 year ending March 31, 2016 as follows:
- The Company exited the fiscal year with $15.3 million in cash and cash equivalents with no debt and 62,212,252 common shares outstanding.
- Over the course of the fiscal year ending March 31, 2016, the Company achieved average gross daily production of 1,585 BOE/D (72% oil), and average net daily production of 1,390 BOE/D (74% oil).
- Capital expenditures totaled approximately $12.4 million for the fiscal year. Of this, approximately $2.4 million was related to the acquisition of electrical generation equipment from Opunake Hydro Limited ("OHL") and other capex as result of the Company's minority interest in Coronado Resources Ltd. ("Coronado"). In FQ4/16, Coronado completed the divestment of OHL.
- At year end March 31, 2016, gross daily production reached 1,740 BOE/D (68% oil), and net daily production reached 1,501 BOE/D (73% oil). Production of gas from the Sidewinder field accounted for 1.6 MMSCFD (274 BOE/D).
TAG is in the process of finalizing its capital budget for fiscal year 2017, which will be funded entirely by forecasted cash flow and existing working capital. Focus over the last few months has been on preparations to increase production through the implementation a water-flood program at each of our Cheal oil pools and the reactivation of several shut-in wells. Results are expected in late June on these efforts. Further information on the FY2017 capital budget spend will be provided by the Company in due course.
Toby Pierce, CEO commented, "Despite the challenges of low oil prices, TAG managed to meet or exceed all of its revised guidance targets for fiscal year 2016 including exiting at March 31st with over $15 million in cash and cash equivalents. The team did an excellent job keeping the production and operations running smoothly while focusing on reducing costs and capital spending. During fiscal year 2017, TAG will continue to focus on minimizing costs and maintaining lean operations while working to grow production and acquire assets to set the Company up to significantly benefit from a return to higher oil prices."
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a development-stage Australasian focused oil and gas production and exploration company with extensive operations and production infrastructure in the Taranaki Basin region of New Zealand. As one of New Zealand's leading operators, TAG is positioned for reserve-based growth with high impact exploration upside in the lightly explored Taranaki discovery fairway. As a low cost, high netback oil and gas producer, TAG is debt-free and reinvests its cash flow into development opportunities and exploration drilling along trend with the Company's existing production.