TAG Oil Ltd. is pleased to report the annual and fourth quarter results for the fiscal year ending March 31, 2019. Notably, the Company was successful in increasing its revenue by 40% to $33.2 million along with a 33% increase in operating netbacks to $40.90 per boe for FY2019.
FY2019 Financial and Operating Highlights
- At March 31, 2018, the Company had $1.9 million (March 31, 2018: $1.8 million) in cash and cash equivalents and $0.06 million (March 31, 2018: $3.4 million) in working capital.
- Total gross proven plus probable reserves as at March 31, 2019 reflecting the Company's 100% interest in PMP 38156 (Cheal), 70% interest in PMP 60291 (Cheal East) and 100% interest in PMP 53803 (Sidewinder), are estimated at 3,988 Mboe (91% oil) compared with 4,079 Mboe (92% oil) at March 31, 2018. The approximate 2% reserves reduction is due to:
- An approximate 10% decrease due to 391,000 boe produced over the 12-month period in fiscal year 2019.
- An approximate 8% increase in annual 2P reserves revisions of 300,000 boe, which is primarily due to technical revisions and economic factors.
- Average net daily production increased by 4% to 1,168 boe/d compared with 1,120 boe/d in FY2018.
- Revenue increased by 40% to $33.2 million compared with $23.7 million in FY2018.
- Operating netbacks increased by 33% for FY2019 to $40.90 per boe compared with $30.66 per boe for FY2018.
- Capital expenditures totaled $9.2 million compared to $24.2 million for FY2018.
- The Company acquired the following permits:
- 100% interest in the 1,851 acre onshore PMP 60454 (Supplejack) in October 2018, carved out of the existing exploration permit PEP 57065 (Waitoriki).
- 100% interest in the 120,340 acre onshore ATO 2037 (Rocky Dam) effective January 2019.
- 100% interest in the 138,132 acre onshore ATO 2038 (Kingston) effective January 2019.
Q4 2019 Financial and Operating Highlights
- Average net daily production increased by 1% for the quarter ended March 31, 2019, to 1,218 boe/d (80% oil) from 1,211 boe/d (80% oil) for the quarter ended December 31, 2018.
- Operating netbacks decreased by 32% for the quarter ended March 31, 2019, to $29.18 per boe compared with $43.14 per boe for the quarter ended December 31, 2018.
- Capital expenditures totaled $1.4 million for the quarter ended March 31, 2019, compared to $3.8 million for the quarter ended December 31, 2018.
In accordance with the anticipated closing of the transaction with Tamarind Resources Pte. Ltd. in July 2019, Mr. Henrik Lundin concluded his position as Chief Operating Officer of the Corporation, along with Mr. Max Murray as its New Zealand Country Manager, to pursue other opportunities.