TAG Oil Updates on New Zealand Production, Development Drilling

TAG Oil Ltd. (TSX:TAO,OTCQX:TAOIF) announced that its shallow development drilling program and production operations in New Zealand’s Taranaki Basin are averaging about 2,000 barrels of oil equivalent a day, in line with estimates.

For the 2015 fiscal year, cash flow from operations should total about $40 million.

As quoted in the press release:

The average net production for the last seven days ending August 4, 2014 was 1,959 BOE/d (80% oil), an increase of 248-BOE/d from June 2014′s monthly average production, due to some flush production from recent testing of new wells drilled at TAG’s 100%-owned Cheal oil and gas field. Almost all of the current production comes from the lightly explored Cheal and Greater Cheal oil and gas field. The Company has in its portfolio, another fifty shallow drill ready prospects identified, and expects that detailed seismic mapping will continue to provide further drilling prospects on this oil-prone trend for many years to come.

Daily production rates for the last three quarters have been stable and growing, with 78% of the daily production coming from high-net back oil production, resulting in strong revenues being generated for Q1/15 (June 30, 2014).

Click here to read the full TAG Oil Ltd. (TSX:TAO,OTCQX:TAOIF) press release.