RSS   Newsletter   Contact   Advertise with us
Post Online Media
Post Online Media Magazine

TAG Oil Q4 revenue from oil and gas sales increased 16%

Share on Twitter Share on LinkedIn
Staff Writer | February 14, 2017
TAG Oil
TAG Oil   A 25% increase in average Brent oil prices

TAG Oil reported third quarter results for the fiscal year ending March 31, 2017, in which oil and gas production, revenue from sales, and operating netbacks increased.

Production over the month of February to date is above guidance with a current net daily average rate of 1,293 BOE/d (79% oil).

Revenue from oil and gas sales increased by 16% for the quarter ended December 31, 2016, to $6.0 million from $5.2 million for the quarter ended September 30, 2016. The 16% increase is due to a 14% increase in average Brent oil prices.

Revenues generated from oil and gas sales increased by 19% for the quarter ended December 31, 2016, to $6.0 million from $5.1 million for the quarter ended December 31, 2015.

The increase is attributable to a 25% increase in average Brent oil prices, partly offset by a reduction in total gas sold by 189 BOE/d or 74% due to the compressor being offline for part of October, 2016.

Operating netbacks increased by 28% for the quarter ended December 31, 2016, to $23.86 per BOE compared with $18.61 per BOE for the quarter ended September 30, 2016.

The increase is attributable to a 14% increase in average Brent oil prices, partly offset by a 7% increase in production costs per BOE.

Operating netbacks increased by 76% for the quarter ended December 31, 2016 to $23.86 per BOE compared with $13.57 per BOE for the for the quarter ended December 31, 2015.

The increase is attributable to 25% increase in average Brent oil prices, partly offset by a 25% increase in production costs per BOE.

The increase in production costs in both instances is due to completion of the Cheal-B5 workover in October 2016.

Capital expenditures totalled $1.5 million for the quarter ended December 31, 2016 compared to $3.2 million for the quarter ended September 30, 2016.

The majority of the expenditure in Q3 2017 related to the Cheal-A and Cheal-E waterflood, Sidewinder gas lift and Supplejack Upper Mt. Messenger test projects.


What to read next
POST Online Media Contact