TAG Oil Reports Fiscal Q3 2023 Results and Provides Badr Oil Field Operations Update
VANCOUVER, BC, Feb. 28, 2023 /PRNewswire/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) ("TAG Oil" or the "Company") is pleased to report the filing of its financial results for the interim period ending December 31, 2022. A copy of TAG Oil's financial statements and management discussion and analysis for the interim period ending December 31, 2022 are available on SEDAR and on the Company's website.
Highlights over the period include that the Company had C$21.4 million (September 30, 2022: C$9.2 million) in cash and cash equivalents and C$24.0 million (September 30, 2022: C$11.5 million) in working capital and has no debt. During the quarter ended December 31, 2022, as previously announced, TAG Oil completed an upsized underwritten public offering for aggregate gross proceeds of C$25.3 million, including the full exercise of the over-allotment option.
Operationally, the Company has commenced re-completion activities on existing vertical well BED 1-7 in the Badr Oil Field in the Western Desert, Egypt. The objective is to test injection and leak-off properties of the Abu Roash "F" ("ARF") reservoir formation during a Diagnostic Fracture Injection Test ("DFIT") followed by assessing production performance after stimulating the well and installing lift equipment to unload the well. Specific operations on the well includes retrieval of existing tubing and packer assembly, isolation of existing up-hole Abu Roash perforations above the ARF, conditioning the open-hole bottom section of the well and completing the ARF zone followed by DFIT analysis and fracture stimulation. Retrieval of the down-hole assembly and cementing the up-hole perforations has been successfully completed. The flow-back and initial production cycle for the well is projected in March. The data from the well will inform and improve the reservoir forecasts and design of the first horizontal well planned in the ARF with spud scheduled in May/June. In addition, further geomechanical studies and 3D seismic review are underway to improve understanding of the petro-physical and geologic parameters in the ARF structure.
The Company continues to manage its costs and allocate the necessary resources towards its operations in the Western Desert, Egypt for the development of the unconventional ARF reservoir in the Badr Oil Field, and towards its business development efforts in other areas in the Middle East and North Africa region.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
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. All estimates and statements that describe the Company's operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary materially from the information provided in this release, and 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. TAG Oil undertakes no obligation, except as otherwise required by law, to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors change.
Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. The Company's future success in exploiting and increasing its current resource base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that the Company's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if the Company encounters unforeseen geological conditions. The Company is subject to uncertainties related to the proximity of any resources that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such resources may be found. Adverse climatic conditions at such properties may also hinder the Company's ability to carry on exploration or production activities continuously throughout any given year.
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SOURCE TAG Oil Ltd.
