VANCOUVER, Aug. 31 /PRNewswire-FirstCall/ -- International oil and gas producer and explorer TAG Oil Ltd. (TSX-V: TAO), announces its filing of the Company's unaudited consolidated interim financial statements and the accompanying management's discussion and analysis for the period ending June 30, 2009.
Summary of selected financial results:
For the three months ended June 30, 2009, TAG reported production revenue of $588,818 from the Company's 30.5% interest in the Cheal oil field, compared to $2,060,824 in revenue for the same quarter last year. Production and royalty costs amounted to $191,009, compared to $437,866 in costs for the same quarter last year. The net loss recorded for the quarter was $170,055, compared to net income of $790,954 for the three months ended June 30, 2008.
Revenue was affected by reductions in the oil price and a decrease in production rates. The average oil price for the current quarter was $64 per barrel (June 30, 2008: $131 per barrel) and the number of gross barrels of oil sold during the quarter was 30,468 (June 30, 2008: 51,340 barrels sold).
Royalty and production costs for the quarter averaged under $20 per barrel (June 30, 2008: $33 per barrel), resulting in a netback per barrel of approximately $44 (June 30, 2008: $98 per barrel).
The Company ended the first quarter of the 2010 fiscal year debt-free, with $6.9 million in cash and $7.72 million in working capital.
TAG Oil CEO Garth Johnson commented, "TAG is continuing to work towards closing the acquisition of the remaining 69.5% interest in the Cheal Mining License and Petroleum Exploration Permit 38748. In the meantime, TAG is working closely with the receiver of Austral Pacific Energy Ltd. to further reduce production costs and improve operational efficiencies of the field. Following the official transfer of operatorship, the Company plans to implement an optimization program on existing producing wells that could improve field productivity. Currently the Cheal oil field is producing 380 barrels of light oil per day."
About TAG
TAG Oil Ltd. (http://www.tagoil.com/) is a Vancouver, BC-based company that owns a 30.5% interest in the Cheal oil discovery in the onshore Taranaki Basin of New Zealand. The Company is poised to grow through full development of the Cheal Mining License and exploration of its extensive onshore Taranaki prospect portfolio.
Forward Looking Statements:
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of TAG Oil. Actual results may vary materially from the information provided in this release. As a result there is no representation by TAG Oil that the actual results realized in the future will be the same in whole or in part as those presented herein. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements are set forth in, but are not limited to, filings that the Company and its independent evaluator have made, including the Company's most recent reports in Canada under National Instrument 51-102 and in the United States under Forms 20-F and 6K.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
TAG Oil Ltd.
CONTACT: Garth Johnson, CEO, (604) 609-3350, Website:
http://www.tagoil.com/
