VANCOUVER, BC, Feb. 28,
2023 /CNW/ - 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.