TAG Oil Blog

Credit Suisse analysis? TAG Oil is differentiated from its peers.

Posted by Denise della Santina on Oct 5, 2012 8:50:00 AM
Credit Suisse logo

Credit Suisse has initiated coverage of TAG Oil, citing the company’s “layers of success” that include its portfolio of assets, location of operations, strong balance sheet and successful track record and demonstrated ability to execute.

What they specifically highlighted:

  • The 5,000 boe/d in behind pipe production that TAG is set to bring in by Q1/13 will contribute cash flow to a strong net cash balance of C$106 million at FQ1/13. That, plus the lack of long-term debt, will enable the Company to continue to self-fund its growth.
  • 380AandF prod 2012TAG’s proven success in the Taranaki Basin, and the Basin’s multiple layers of prospective hydrocarbon zones: the shallow basin plays of Cheal and Sidewinder which are fueling growth and profitability now, as well as the deeper condensate- rich plays of Hellfire and Cardiff, which will drive midterm growth in FY 2013 and 2014.
  • The potential of long-term tight oil: As exploration with Apache Corp continues in the East Coast Basin, the value generation potential of 13 billion barrels OOIP estimated in TAG Oil’s permit assets could be significant. 
  • New Zealand operations provide a low geopolitical risk, operating and transportation costs are lower cost than many North American oil and gas producers, and there are no seasonal considerations that impede many Canadian drilling operations.
You can access contact information for the Credit Suisse research analyst covering TAG Oil here.

Topics: East Coast Basin, Cardiff, Hellfire, third-party reports, unconventional oil, Financial coverage, Taranaki, Announcements, Apache Corp, New Zealand, Cheal Oil Field, tight oil

TAG Oil closes bought-deal offering

Posted by Denise della Santina on May 16, 2012 8:15:00 AM

We know there's been more financial news than drilling photos from the field lately, but it's all in the running of an oil and gas business.

TAG Oil has closed its bought-deal offering of common shares (at $10.45 per common share for gross proceeds of $46,345,750).

We plan to invest the proceeds to:

- Accelerate exploration and development program in the Cheal, Sidewinder and Kaheru permits in the Taranaki Basin;

- Identify and pursue new business opportunities including future land acquisitions in the Taranaki Basin; 

- Fund general corporate projects.

The underwriters, who have agreed to purchase 4,170,000 common shares on a bought deal basis, include: Dundee Securities Ltd. (Bookrunner and Co-Lead Underwriter), Casimir Capital Ltd. (Co-Lead Underwriter), Cormark Securities Inc., GMP Securities L.P., Mackie Research Capital Corporation and M Partners Inc.  

Topics: Announcements

TAG Oil a Top Pick on Business News Network

Posted by Denise della Santina on Apr 29, 2012 4:53:00 PM

BNNLogo

A nice bit of press at BNN (Business News Network) Canada, picking TAG Oil as a top stock pick recently. There's a short ad, but at about minute 1:23 you'll see TAG Oil selected as Robert McWhirter's (of Selective Asset Management) first Top Pick: http://ow.ly/azkxS

We'll forgive them for mis-classifying us as a Venezuelan company, since the rest of the profile is spot on.

Topics: East Coast Basin, unconventional oil, Financial coverage, Announcements, tight oil

TAG Oil gets some love from “The Street”

Posted by Denise della Santina on Mar 15, 2012 3:39:00 PM

TAG Oil was in some pretty nice company in a recent Frank Byrt piece in The Street. For the whole article link here, http://ow.ly/9FcGr, and for an excerpt, read on.

TAG Oil, The Street

Boston | Frank Byrt | The Street | 3/12/12

10 Best-Performing Stocks in Three-Year Bull Market

"…In order to find the best of the last group, I screened Morningstar data for companies with solid financial fundamentals, a market value of at least $250 million and a three-year average annual return of 200% or better.

Surprisingly, there is only one technology company in the group, and the rest are a smorgasbord, including a yoga-wear retailer, a Las Vegas casino developer and a Canadian oil driller that went all the way to New Zealand to get at black-gold deposits….The 10 stocks we found are summarized below…”

10. TAG Oil (TAOIF)

TAG Oil, with a market value of $547 million, is a Canadian company producing and exploring for oil and natural gas in oil shale in New Zealand…. Its shares are up 43% this year and have a three-year, average annual return of 318%. No U.S. analyst coverage is available, but hedge fund manager Elliott Associates, with $15 billion in assets, is the biggest stakeholder at 12%, followed by Fidelity and Fidelity Canada, with a combined 7%. Tag Oil said today that it upped its capital expenditures by $66 million to expand oil and gas drilling at its company-owned fields in New Zealand, because its efforts have been so successful.

9. Dollar Thrifty Auto Group (DTG )

Dollar Thrifty, with a market value of $2 billion, owns, operates and franchises car rental operations throughout the U.S., Canada and abroad. 

8. Pharmacyclics (PCYC)

Pharmacyclics, with a market value of $1.8 billion, is a developer of pharmaceuticals used to treat certain cancers and cardiovascular disease. 

7. Mitek Systems (MITK)

Mitek, with a market value of $302 million, is the developer of software used for image recognition, used in check and document processing, and forgery detection.

6. Jazz Pharmaceuticals (JAZZ)

Jazz Pharmaceuticals, with a market value of $2.8 billion, is a specialty-pharmaceutical company that develops and markets medical products in the fields of neurology and psychiatry. 

5. Select Comfort (SCSS)

Select Comfort, with a market value of $1.8 billion, makes air beds and other sleep-related products. The company's mattresses have adjustable firmness levels and range in prices up to $2,600. 

4. Keryx Biopharmaceuticals (KERX)

Company profile: Keryx, with a market value of $299 million, acquires and develops products for the treatment of diseases, including diabetes and cancer. 

3. Pier 1 Imports (PIR)

Pier 1 Imports, with a market value of $1.9 billion, is a retailer of decorative accessories, furniture, housewares, and seasonal items imported from more than 50 countries. Pier 1 has over 1,000 stores.

2. Lululemon Athletica (LULU)

Lululemon Athletica, with a market value of $8 billion, is a specialty retailer and designer of upscale athletic apparel for women, with a focus on yoga-inspired merchandise.

1. Las Vegas Sands (LVS)

Las Vegas Sands, with a market value of $40 billion, is the world's largest operator of integrated resorts encapsulating casinos, hotels, entertainment, food and beverage, retail, and convention center operations.

Content copyright of The Street, Inc. 14 Wall Street, 15th Floor, New York, New York 10005. For the whole article, link here: http://ow.ly/9FcGr.

Topics: third-party reports, Financial coverage, Announcements, Product Information

Farmout agreement with Apache Corporation on the East Coast Basin

Posted by Denise della Santina on Sep 6, 2011 2:48:00 PM

This news is in a press release on our site, but it bears repeating in the blog: We've entered into a farmout agreement with Apache Corporation to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand. 

Apache has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG’s East Coast Basin exploration permits PEP 38348, PEP 38349 and PEP 50940 (“the Permits”). The Permits comprise in excess of one million prospective acres of onshore oil and gas opportunities located on the southeast portion of the North Island. TAG currently holds a 100% working interest in the properties.

Apache has agreed to pay for a portion of TAG’s direct costs incurred to date, as well as providing TAG a full carry on three phases of operations to a maximum agreed cost in each phase. If the agreed cost is exceeded in any phase, or if additional operations are conducted, Apache will pay a majority share of any drilling or seismic costs in the specified percentages set out in the Agreement.

Each phase of operations will include an aggressive program of both 2D / 3D seismic and drilling with Apache earning an increasing interest in the Permits as follows:  

Phase 1: Apache will earn a 50% interest in 5,120 acres of the Permits after operations are conducted and by committing to Phase 2.

Phase 2:  Apache will earn a 25% interest in the Permits after operations are conducted and by committing to Phase 3.

Phase 3: Apache will earn a 50% interest in the Permits after operations are conducted and by committing to Phase 4 operations.

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Subject to certain conditions, the planned exploration work program will be conducted over the next four years. Seismic operations will start in 2011 with drilling to commence in 2012.

Apache will be the Operator for all activities undertaken pursuant to the Agreement, excluding the initial four vertical wells of the work program that TAG will operate with Apache’s assistance.  Apache will spend up to $100 million upon completion of Phase 3 to earn a 50% interest in the Permits. At the end of Phase 3 operations TAG will remain as operator of the Permits.  If Apache commits to Phase 4 operations, all costs will then be shared equally between Apache and TAG going forward.

We're excited and honored to partner with Apache in the East Coast Basin to achieve a common goal of converting the potential of the Basin to proven reserves with integrity, respect and excellence in a safe and environmentally responsible manner. We are planning an aggressive exploration program with Apache with a starting date of September 2011 to initiate seismic acquisition with drilling to begin in early 2012.

Topics: East Coast Basin, unconventional oil, Announcements, tight oil

TAG Oil-sponsored Taranaki bests Southland in Ranfurly Shield win!

Posted by Denise della Santina on Aug 25, 2011 4:06:00 PM

The hard-fought rugby match was a double celebration for the Taranaki team, who secured the shield and cleared relegation danger. They defend in New Plymouth against Hawkes Bay this coming Sunday, in a little west coast versus east coast rivalry.

A parade from downtown to the Stadium—with a predicted 35,000 in the stands—will allow proud locals to celebrate the team.

Taranaki last won the shield 15 years ago...to the day of today's win. Congratulations guys, and keep your foot on the gas!

TAG Oil
TAG Oil’s logo “proudly” displayed.
Ash Parker takes the ball from a lineout for Canterbury, in Saturday’s ITM Cup drubbing.
Photo: Joseph Johnson/photosport.co.nz
Ash Parker takes the ball from a lineout for Canterbury, in Saturday’s ITM Cup drubbing.
Ranfuly Cup game
A happier result for team Taranaki in yesterday’s Ranfurly Cup game.

Topics: Taranaki, Announcements, New Zealand

Casey Research, LLC joins the list of analysts with an eye on TAG Oil.

Posted by Kris Clark on Jun 22, 2011 12:04:00 AM

Marin Katusa of Casey Research, LLC. is now among the analysts covering TAG Oil. www.caseyresearch.com  

Please see all the analysts with investment coverage on TAG Oil here.

Topics: third-party reports, Financial coverage, Announcements

TAG gets a substantial oil and gas reserve increase from Sproule.

Posted by Kris Clark on May 18, 2011 12:17:00 AM

Sproule International Limited, one of Canada’s largest independent petroleum engineering consulting companies, has released an assessment of TAG’s reserves in the Cheal Mining Permit and Sidewinder Exploration Permit increasing our probable reserve substantially.

After considering 2011 production, the 1,677,000 BOE in proved and probable reserves represents a 221% increase over their March 2010 reserve assessment.

Due to fiscal year-end 2011 cut-offs and the timing of April and May Sidewinder ops, the reserves relate primarily to the Cheal oil and gas field. Sidewinder’s reserve assessment was completed with information related only to the Sidewinder-1 well, and doesn’t (yet) include the now-completed Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells. We think this just means more good news for the future.

The assessment of reserves has assigned net proved and probable reserves remaining of 1,360,000 barrels of oil (2010 = 651,000 bbls) and 1,864 mmcf of associated gas (2010 = 258 mmcf). This reserves report, on a 2P basis, amounts to 1,677,000 barrels of oil equivalent assessed in a reserves area covering just 475 acres of the 7,487-acre Cheal permit and just 107 acres of the 7,910-acre Sidewinder permit.

TAG Oil exploration

Topics: Announcements, Cheal Oil Field, oil and gas production, Sidewinder Discovery

Sidewinder-4…another oil and gas strike.

Posted by Kris Clark on May 6, 2011 5:16:00 PM
Sidewinder-2

Fortunately, this kind of news never gets old. The Mt. Messenger sandstones and PEP 38748 continue to pay off.

The interpreted total hydrocarbon column at TAG's Sidewinder discovery now exceeds 60 meters in thickness, with no water column evident in any of the Sidewinder wells.

The Sidewinder-4 well, sidetracked to a location down-dip of Sidewinder-3, targeted a fault-bounded 3-D anomaly which intercepted a gross 29 meter-thick sandstone reservoir. Total depth is 1410 meters with 19 meters of net oil-and-gas-charged sandstones; electric logs indicate hydrocarbon charge to the base of the sandstone. Free oil was observed over the shakers during the drilling operation from the target zone, and consistent with all of the Sidewinder wells drilled to date, the oil-and-gas-charged sandstones encountered in Sidewinder-4 have excellent porosity and permeability.

Topics: Mt. Messenger, Announcements, Sidewinder Discovery, PEP 38748

Third time’s a charm…Sidewinder oil and gas discovery does it again.

Posted by Kris Clark on Apr 5, 2011 6:29:00 PM
Sidewinder-3
The rig is a thing of beauty against heavy grey clouds.

PEP 38748 and Mt. Messenger do it again…the Company just announced that Sidewinder-3 is confirmed as a light oil and gas discovery. It’s been a busy couple of days: we drilled to 2160 meters about 1 km south of our Sidewinder-1 discovery, targeting a large anomaly ID’d on 3-D seismic. We encountered 15.4 meters of net oil-and-gas-bearing sandstones in the primary Sidewinder zone, including "free oil" observed over the shakers during the drilling operation.

With each new well we can more accurately calibrate our 3-D data set and better understand the geology of our acreage. In particular, Sidewinder-3 has shown that the Mt. Messenger Formation reservoir sands extend significantly to the south of the original Sidewinder discoveries, and hydrocarbons appear to have migrated into all potentially producing sands encountered to date. Good news for both near-term development and future exploration.

No time to rest on our laurels, it’s time to get busy on the Sidewinder-4 exploration well off to the east.

Topics: Mt. Messenger, Announcements, Sidewinder Discovery, PEP 38748