TAG Oil Ltd. V.TAO

Alternate Symbol(s): TAOIF

Energy Oil & Gas E&P

TAG Oil Ltd. is an international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa. It holds an interest in the Badr Oil Field (BED-1), a 26,000-acre concession located in the Western Desert, Egypt, through a production services agreement (the PSA) with Badr Petroleum Company (BPCO). It is focused on BED-1 the re-completion and evaluation operations of the BED 1-7 vertical well. These initial operations are part of its phase I development program of Abu Roash F (ARF) reservoir in BED-1. The BED 1-7 well started oil production from the ARF reservoir. Its Field Development Plan (FDP), consisting of drilling 20 horizontal wells to be completed with multi-stage fracture stimulation, is focused on the east central part of the BED-1 concession area and contains OIIP P50 volumes of 178.3 million barrels and mean volumes of 179.0 million barrels. Its subsidiaries include TAG Energy International Ltd., CX Oil Limited, and others.

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TAG Oil Ltd.

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Comment by kootenion Aug 20, 2011 5:15pm

335 Views

Post# 18963922

RE: Cabel

You are too pessimistic with your numbers.

Tag's 2011 financial report states that Tag received $100/bbl avg. for oil in quarter ending March 31, 2011.

Tag receives $5.66/GJ CDN at current exchange rates . But we know Sidewinder gas is liquids rich
and therefore receives a premium for heat content. ( See Peyto example below. ) . If we use a premium
of 17% then Tag will get $6.60/mcf CDN.

With $100/bbl Cdn. oil and $6.60/mcf Cdn. gas Tag will be very profitable.

From Peyto's (T.PEY) 2Q financial report.
As at June 30, 2011, Peyto had committed to the future sale of 38,770,000 gigajoules (GJ) of natural gas at an
average price of $4.31 per GJ or $5.05 per mcf based on Peyto’s historical heat content premium.

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