TAG Oil Ltd. (the “Company” or “TAG Oil”) (TSX: TAO and OTCQX: TAOIF) is pleased to report first quarter results for the fiscal year ending March 31, 2018. Most notably, the Company successfully drilled and flow tested the Cheal-E8 exploration well on its 70% working interest and operated Cheal East permit (PEP 54877) located in the Taranaki Basin of New Zealand, which has since been tied-in to TAG Oil’s existing infrastructure as a permanent producer. Further, the Company is also pleased to announce that it has successfully drilled and cased the Cheal-D1 exploration well, with testing operations currently underway and results expected within the next two weeks.
As quoted in the press release:
Toby Pierce, TAG Oil’s CEO, commented “Q1 2018 has been a very busy quarter for TAG Oil. Our focus has been on execution – drilling Cheal-E8 and converting Cheal-A2 to a water injector. In addition, we had a complete plant and pipeline shutdown at the beginning of April for 8 days, which kept our New Zealand team busy, but they have done an excellent job of executing the project safely and efficiently. Oil prices were 14% weaker than we had forecast during the quarter, however it appears that it may be strengthening as we progress through Q2 2018. In any event, we continue to closely monitor oil prices and our capital position in order to manage liquidity and capital budgets. We are prepared to trim our budgets, where appropriate, if it is required to preserve the balance sheet. Finally, farm-out discussions are continuing with regards to two of our prospects – the Pukatea well and the Cardiff acreage.”