TAG Oil Blog

TAG's East Coast Basin Exploration: Onward and Upward!

Posted by Denise della Santina on Feb 5, 2013 7:43:00 AM

TAG Oil has experienced heavy trading activity recently, with over 13 million shares traded in January. This is due in part to the news that Apache has exited our East Coast Basin joint venture as part of their global corporate repositioning.

We have strong support from analysts following TAG, and the entire TAG team including large shareholders are delighted to take back 100% control of the project, sending out positive feedback to the investment community.

We're happy to move forward with the strong technical work that TAG and Apache accomplished together in the East Coast Basin, and are ready to begin exploration drilling in this frontier blanketed with conventional and unconventional oil and gas opportunities.

Says MPartners, "We view the quick, cash settlement with Apache positively." 

Says Credit Suisse, "We maintain our Outperform rating and raise our TP to $9.50."

Says Casimir Capital, "TAG back in the driver's seat...Recommendation: Strong Buy."

Says National Bank Financial, "Reiterate Outperform Rating...We continue to like the stock at these levels."

Topics: East Coast Basin, third-party reports, Financial coverage, Apache Corp

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