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According to the release, the company was successful in securing a revolving credit facility of up to US$10 million with a large New Zealand based lender, as well as increasing its revenue by 53 percent along with a 67 percent increase in operating netbacks to US$44.16 per boe for the quarter.
Tag Oil Ltd. (TSX:TAO,OTCQX:TAOIF) has released a financial and operations update for the period ending June 30, 2018. According to the release, the company was successful in securing a revolving credit facility of up to US$10 million with a large New Zealand based lender, as well as increasing its revenue by 53 percent along with a 67 percent increase in operating netbacks to US$44.16 per boe for the quarter.
As quoted from the press release:
Q1 2019 FINANCIAL AND OPERATING HIGHLIGHTS
- At June 30, 2018 the Company had US$4.8 million (March 31, 2018: US$1.8 million) in cash and cash equivalents and US$5.8 million (March 31, 2018: US$3.4 million) in working capital.
- Average net daily production decreased by 6 percent for the quarter ended June 30, 2018 to 1,048 boe/d (79 percent oil) from 1,117 boe/d (75 percent oil) for the quarter ended March 31, 2018.
- Revenues generated from oil and gas sales increased by 53 percent for the quarter ended June 30, 2018 to US$9.1 million from US$5.9 million for the quarter ended March 31, 2018.
- Operating netbacks increased by 67 percent for the quarter ended June 30, 2018 to US$44.16 per boe compared with US$26.42 per boe for the quarter ended March 31, 2018.
- Capital expenditures totalled US$1.1 million for the quarter ended June 30, 2018, compared to US$6.3 million for the quarter ended March 31, 2018.
- On April 19, 2018 the Company announced that it had secured a revolving credit facility of up to US$10 million with a large New Zealand based lender, which is secured against TAG Oil’s producing Taranaki Basin assets and has been put into place for an initial period of 12 months. As part of the credit facility, TAG Oil agreed to hedge approximately 400 bbl/d of oil production for the 12-month period using a collar with a US$60/bbl floor and a US$75/bbl cap.
- On May 15, 2018 the company announced the appointment of Mr. Peter Loretto to the Board of Directors.
“Operationally, TAG Oil had a very good quarter with over US$5.1 million in cash flow from operating activities and a working capital position of US$5.8 million at the end of Q1/2019. The company commenced a campaign in July that will involve multiple workovers and water injector conversions, which may have a positive impact on our production in upcoming quarters. TAG Oil continues to focus on growing its cash flow, increasing its production and strengthening its balance sheet over the near to medium term,” said Toby Pierce, TAG Oil’s CEO.