VANCOUVER, BC, Dec. 19,
2024 /CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) (FSE: T0P) ("TAG Oil" or the "Company")
is pleased to announce the following operations update and upcoming
development of the Abu Roash "F" ("ARF") unconventional
carbonate reservoir at the Badr Oil Field ("BED-1")
concession in the Western Desert of Egypt and various corporate initiatives.
The BED4-T100 ("T100") horizontal well continues to
produce at an average rate of 100 barrels of oil per day
("BOPD"). The well has been steady, producing for close to
90 days under a rod pumping system. Cumulative gross production to
date is in excess of 20,000 bbls of oil from the well.
TAG Oil resumed production from the BED 1-7 vertical well in
December at approximately 40 BOPD on natural flow. Currently, a rod
pump and associated surface facilities are being installed to
optimize the oil rate and it is projected the well will be back on
production later this month. Cumulative gross production from the
well to date is approximately 10,000 bbls of oil.
Improved field treating of the medium grade crude oil and
regular deliveries have commenced as sales and transportation
logistics continue to be optimized. Other operating costs are being
reviewed and reduced to improve per barrel netback margins on both
the T100 and BED 1-7 oil production.
For the 2025 development plans at the BED-1 concession, the
Company intends to drill a vertical well in Q2-2025 to further
develop the ARF formation in a high intensity natural fractured
area that can potentially produce at good initial oil volumes.
Planning of a second horizontal well is tentatively scheduled for
drilling in Q4-2025.
TAG Oil has signed an Engagement Agreement with PillarFour
Capital of London to sell the
New Zealand royalty interests.
Proceeds from the sale will be used to strengthen the Company's
balance sheet.
The Company also signed an Engagement Agreement with LAB Energy
Advisors of London to offer
participation in the BED-1 concession by strategic international
industry partners to accelerate the development of the ARF
formation.
Acquisition approval of the large 2,000 km2
concession in the Western Desert is progressing and the Company
will provide any updates as they arise.
Abby Badwi, TAG's Executive
Chairman and CEO, commented, "Closing of the $6.8 million equity financing, cost reductions,
production revenue improvements from existing wells, and the
potential sale of the New Zealand Royalty will supplement our cash
balances and funding of the 2025 capital program. The appointment
of LAB Energy Advisors and securing a partner at the BED-1
concession will have a significant impact on the scale of
activities and accelerating the development of our assets in
Egypt."
For further information, the Company's Corporate Presentation
can be viewed at http://www.tagoil.com/.
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.
Website: http://www.tagoil.com/
LinkedIn: https://www.linkedin.com/company/tag-oil-ltd
X: https://twitter.com/tagoilltd
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
This release includes certain statements and information that
constitute forward-looking information within the meaning of
applicable Canadian securities laws. All statements in this
release, other than statements of historical facts are
forward-looking statements. Such forward-looking statements and
forward-looking information specifically include, but are not
limited to, statements that relate to Mr. Badwi and Mr. Gupta's
continued roles in monitoring the corporate and operational
progress and driving the expansion of the Company; the Company's
intention to reduce several Canada
based positions and adjust costs across the Company's Canadian and
Egyptian offices and operations significantly improves the cost
structure enabling the Company to prudently apply its financial
resources towards its capital spending programs; and management
continuing to leverage Canadian and U.S. unconventional horizontal
drilling and hydraulic fracturing expertise to support and advise
the TAG Oil team in the specialized development of the Company's
large Abu Roash "F" resource play in Egypt's Western Desert.
Statements contained in this release that are not historical
facts are forward-looking statements that involve various risks and
uncertainty affecting the business of TAG Oil. Such statements can
generally, but not always, be identified by words such as
"expects", "plans", "anticipates", "intends", "estimates",
"forecasts", "schedules", "prepares", "potential" and similar
expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. All statements that describe the
Company's plans relating to operations at the BED-1 concession, the
sale of the New Zealand royalty,
and potential strategic partnership opportunities to accelerate
operations at the BED-1 concession are forward-looking statements
under applicable securities laws. These statements address future
events and conditions and are reliant on assumptions made by the
Company's management, and so involve inherent risks and
uncertainties, as disclosed in the Company's periodic filings with
Canadian securities regulators. As a result of these risks and
uncertainties, and the assumptions underlying the forward-looking
information, actual results could materially differ from those
currently projected, 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 disclaims any intent
or obligation to update forward-looking statements or information
except as required by law. Readers are referred to the additional
information regarding TAG Oil's business contained in TAG Oil's
reports filed with the securities regulatory authorities in
Canada. Although the Company has
attempted to identify important factors that could cause actual
actions, events, or results to differ materially from those
described in forward-looking statements, there may be other factors
that could cause actions, events or results not to be as
anticipated, estimated or intended. For more information on TAG Oil
and the risks and challenges of its business, investors should
review TAG Oil's filings that are available at
www.sedarplus.ca.
TAG Oil provides no assurance that forward-looking statements
and information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements or information. Accordingly, readers should not
place undue reliance on forward-looking statements or
information.
Exploration for hydrocarbons is a speculative venture
necessarily involving substantial risk. The Company's future
success in exploiting and increasing its current reserve 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. References to "oil" in
this release include crude oil and field condensate.
SOURCE TAG Oil Ltd.