TAG Oil Blog

TAG Oil's story gets shared via OTC Markets

Posted by Denise della Santina on May 6, 2014 8:21:00 AM

TAG Oil founder and Chairman Alex Guidi takes a step into the spotlight, to talk to the folks at OTC Markets.

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As this month's feature interview, we got the chance to spread the news TAG's oil and gas drilling success, record revenues, exploration strategy, and sound financial fundamentals, as well as New Zealand's major untapped potential. 

Says Chairman Guidi, "Exploration is a risky business. However TAG Oil is an opportunity for investors to participate in a high-impact exploration company with risk mitigated by a foundation of reserves and an established production base. We have years of development drilling opportunities ahead, state-of-the-art infrastructure in place to handle growth, and a portfolio of drilling opportunities with significant undiscovered resource potential.... When you consider the significant undiscovered potential, a ready market for domestic consumption of natural gas, and the premium quality, high-netback oil sold into the Australasian market, TAG’s potential in New Zealand is very compelling."

Read the full interview here: TAG Oil's OTC Interview

TAG Oil is a member of the OTCQX, designed for investor-focused companies that meetdescribe the image high financial standards, are current in their disclosure and receive third party advisory. According to OTC, "The companies found on OTCQX are distinguished by the excellence of their operations and diligence with which they convey their qualifications." 

Topics: third-party reports, Financial coverage, Announcements

TAG's near-term catalysts noted in a new investor "Top-Picks" report

Posted by Denise della Santina on Jan 15, 2014 8:02:00 AM

Noted Canadian investment bank, M Partners, just released its Top Five Picks for 2014, and TAG Oil made the cut. The report highlights the up and comers on the firm’s investment radar for the year ahead, and each of the five companies profiled is expected "to lead their respective universe of coverage over the course of the year."

So, what do they like about TAG Oil?

Screen Shot 2014 01 10 at 1.40.46 PMThey appreciate TAG's strategy of establishing its cash-flowing production base in Taranaki to fund the search for higher impact, deep gas plays with considerable upside potential.

And that the production income from our shallow, producing Taranaki fields has led to a solid balance sheet which also "de-risks" the enormous unconventional resource potential in TAG's East Coast Basin permits, plans for which are advancing in 2014.

They report that TAG shares currently trade at 2.2x EV/EBITDA (calendar 2014), which is a significant discount to its Southeast Asian/Australasian comps at 2.9x.

In their words, "Underlying our Buy rating is the attractive valuation and significant production growth trajectory, driven by the high-impact deep gas Taranaki program now underway and funded by the solid balance sheet and cash flow from its shallow Taranaki production base."

We couldn't have said it better ourselves.

Topics: third-party reports, Financial coverage, Announcements

100% compliance on the Ngapaeruru-1 well

Posted by Denise della Santina on Aug 12, 2013 2:15:00 PM

We’re happy to report the positive findings in a report by Horizons Regional Council, which tracks and manages the land, air, and water for a large portion of New Zealand’s north island.

Horizons visited TAG’s Ngapaeruru-1 site 11 times to monitor compliance during construction and drilling activities, and to take ground and surface water samples with each visit to test the different phases of well activity. Visits and water analysis showed no incidents – essentially giving TAG and the well site a clean bill of health.

TAG’s operating goal is to achieve 100% compliance during all activities of its drilling programs, whether it affects worker or environmental safety, and we thank our team for their care and commitment.

More about Horizons Regional Council

The Council focuses on biosecurity and biodiversity, and “works to identify potential hazards and risks to people, property, infrastructure, environment and the local economy.” The area they oversee:

  • Covers 22,215 sq km of land
  • Includes 160 km of coastline, with the Tasman Sea to the west and Pacific Ocean to the east
  • Extends 12 nautical miles out to sea
  • Is home to more than 220,000 people

More about Ngapaeruru-1

We continue to analyze the very encouraging drilling data, and our team expects to make a decision on future activities in the coming months. 

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Topics: exploration well, East Coast Basin, third-party reports, unconventional oil

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

Opportunity Arises: Energy Analysts bullish on TAG Oil

Posted by Denise della Santina on Nov 30, 2012 12:16:00 PM

A slew of analysts' reports were released last week, uniformly positive in their outlook for TAG Oil's exploration, production and performance prospects. For more information, please visit the Analyst page of our website.

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Topics: third-party reports, Financial coverage

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

National Bank Financial now covering TAG Oil

Posted by Denise della Santina on Sep 17, 2012 11:50:00 AM
National Bank Financialnbf logo initiates coverage on TAG Oil with an "Outperform" rating. They particularly appreciate the Company's attractive valuation, the mix of Taranaki Basin conventional oil and gas production with unconventional hydrocarbon exploration in the East Coast Basin, and our three high-impact, liquids-rich, drill-ready prospects, Cardiff and Hellfire.

Topics: third-party reports, unconventional oil, Financial coverage, oil and gas production

Dundee Securities now covering TAG

Posted by Denise della Santina on Apr 22, 2012 2:31:00 PM

Alexander Klein of Dundee Securities Ltd. is now among the analysts covering TAG Oil.

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

Topics: third-party reports, Financial coverage

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

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