Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


TAG Oil earnings improve on shift to oil over gas

TAG Oil earnings improve on shift to oil over gas

By Pattrick Smellie

Aug. 18 (BusinessDesk) - Onshore Taranaki oil and gas producer TAG Oil has shifted production heavily in favour of oil and away from natural gas between the first quarters of the current and the previous financial years, substantially improving its earnings per barrel of oil equivalent in the process.

Operating results for the three months to June 30, filed with the Toronto Stock Exchange, show "netback" per barrel of oil equivalent has improved from C$43.72 per boe in the first quarter of last year to C$72.16 per boe in the first quarter of the current financial year.

The change appears primarily driven by the fact that oil, worth US$118 per boe in the quarter, has moved to be 74 percent of production, compared with 46 percent in the first quarter last year. Gas is said to be worth US$5.60 per thousand cubic feet, the measure Canadian-based TAG uses for gas quantities.

That shift meant that net oil and gas revenues totalled C$13.1 million for the quarter under review on production of 1,750boe, compared with C$12.1 million in the first quarter of last year, which had a higher rate of boe production, at 2,354 boe, of which more than half was natural gas.

Chief executive Garth Jonson said in a statement that TAG was "considering a number of business growth opportunities", now that it had stabilised production results from two new wells in its Cheal prospect, which have taken production to an average 1,977 boe daily this month, in line with the company's 2,000 boe daily target.

"One such opportunity may include contracting with additional drilling services required to expedite drilling operations, with a view to further grow shallow production within the Cheal and Sidewinder fields", both of which are onshore Taranaki.

The company has also shifted the Nova-1 drilling rig from Taranaki to the East Coast of the North Island to drill an exploratory well at Watangi Valley, targeting so-called "unconventional" shale deposits in the Waipawa black shale and Whangai source rocks. A second East Coast well is planned at Boar-1, later in the current financial year.

However, that won't be drilled until after another five shallow wells, including two step-outs at the producing Sidewinder field, have been completed. TAG will also participate in a wildcat exploration well in the lightly explored Canterbury Basin during the year.

During the quarter, average daily production increased by 18 percent to 1,750 boe, compared with the last quarter of the previous financial year, ended March 31. Total revenue was up 11 percent on the March quarter at C$15.6 million, and increased 6 percent on the C$14.7 million sales recorded in the first quarter of the last financial year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news