Here’s an excerpt from TAG Oil’s Q2 conference call, conducted by Chief Executive Officer Garth Johnson and New Zealand Country Manager Randy Toone on November 14th. You can listen to the full podcast and see the Q2 financials here, or here's a highlight for those of you who don’t want to listen to the whole recording.
The transcript is from Thompson Reuters.
In which normally unflappable CEO Garth Johnson, allows himself to get a little bit excited…
“I don't believe that there is a peer company out there that could compare to TAG’s potential. We are creating value right now. We are fully funded to achieve our goals with over $70 million in the bank. We have no debt. We have strong cash flow from daily production. Cash flow is expected to keep growing over many years with the program we have under way. In early results we announced today at our Cheal-E site, the testing program continues to build our confidence.
Taking an optimistic view of what's in front of us at TAG is an exciting thing right now because we have a fully funded drilling program underway. With the resource potential being targeted, in the next 12 months, a 477 Bcf and 49 million barrels of oil and condensate on p50 basis. That includes prospects ranging from shallow Taranaki, deep Taranaki and shallow offshore Taranaki.
It's an amazing program for TAG. And added to that is the advancement of the East Coast unconventional play that has the potential to eclipse everything else combined if we prove it to be a commercial play. We have a lot of work to do in the East Coast but it's underway….
TAG’s always been a first-mover. We are confident we can continue to safely achieve our goals. And that will create significant value for our employees, our community, and of course our shareholders as we strive to unlock New Zealand's potential and become the number one oil and gas producer in New Zealand.
At the same time, we have a duty to all our stakeholders to consider all potential outcomes of our programs underway. We expect success and we have the people to make it happen. But what TAG offers now that other companies our size can't do is we could also mitigate downside risk. We can do so with our reliable and growing shallow oil reserves. We have reliable and growing cash flow and we have a low risk shallow prospect inventory that can allow drilling to continue in the Taranaki production fairway for the next five to 10 years, while also combining this lower risk drilling activity with numerous potentially game-changing wells being drilled when it's smart for us to do so.
This is what we've strived to achieve for TAG for many years, that's why we remained committed to New Zealand. And recently I have been speaking to many of our shareholders and a common opinion from those discussions became apparent. And that is that for an investor it doesn't get much better than owning TAG right now, with the fully funded, potentially game-changing opportunity to participate in major upside potential while also having downside risk being mitigated.”