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

 

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news