Sunday, August 3, 2014

Tag Oil reports FY 2014 results

Link:


Record volume of annual production achieved in FY2014 of 681,615 BOE (75% oil) with average gross daily production increasing by 15% for the fiscal year to 2,027 BOE/d compared with 1,756 BOE/d in fiscal year 2013. Average net daily production increased by 6% to 1,868 BOE/d compared with 1,756 BOE/d in 2013.


Net income before taxes increased by 190% for the fiscal year to $14.7 million compared with $5.1 million in fiscal year 2013, driven primarily by a 15% increase in oil production.


Revenue from oil sales increased 18% to $45.8 million compared with $38.7 million due to increased oil production (15%) and pricing (3%). Revenue from gas sales increased 38% to $7.7 million compared with $5.6 million due to the ability to process and sell previously flared Cheal gas volumes. Revenue generated from electricity sales contributed $3.9 million compared with $0.3 million due to TAG's 49% ownership of Coronado Resources Ltd.
 
The company continues to self funded with no debt. Drilling for the big shale prize is currently under way on East Coast. The company continues to buy back shares on a consistent basis. Overall steady as she goes until the results come in on the east coast shale drilling which could be a game changer. Tag Oil is still a very interesting speculation at these prices and the size of the prize makes this a potential lottery ticket.


Tag Oil has new corporate presentation on their website.

3 comments:

Anonymous said...

John I love your blog, I think you do a great job, of finding hidden gems. I was wondering if you why TAG has gone down so much recently. Does someone know something? is it because of end of the year tax selling early? Tag is moving too slowly with drilling?? I own a bunch and feel like patience is key but just wondering if your network knows anything. As an aside have you checked out True Gold, I'm loading up on them low cost, good geographic area, will be producing gold by next year.

boubin2 said...

TAG has disappointed people with production in the Taranaki basin. This turned off many investors. In addition the shale drilling is going to take a while to prove or disprove the concept. People lose interest if there is not a constant flow of news. I continue to like this as a specualtion but I would caution you to remember that what they are attempting to find is going to take a while, think 3-5 years possibly to prove up the concept.

boubin2 said...

I was at the Casey Research confeence this weekend and asked Marin Katusa, the energy analyst at Casey Research about Tag, he said that he had owned it but that he did not trust the management anymore and he told his subscribers to sell at $2.50. He also said a bunch of funds sold out at $2.50 so this could be why the thing dropped so quickly recently.

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