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.

TSXV:TAO - Post by User

TAG Oil Ltd.

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Comment by cosmicpumpon Nov 01, 2011 3:52pm

296 Views

Post# 19199505

RE: Things I didn't know

Cabel1,
You are getting ridiculous. You always speak about $7/mcf. This is dead wrong. it is NZ$7/mcf so around USD5/mcf
So do your computation with exact number.
Another point is you always speak about revenue. But the market does not care about revenues. What the market care is CASH FLOW.
CASH FLOW after royalties, taxes, drilling cost, transportation cost.... might be around 40% of revenues.
Junior oil&gas companies are usually valued by the market at between 3 to 4 times Cash Flow.
Take into account all the different parameters above and compute again and you will see if TAG is undervalued or overvalued ????
From my computation a fair value is between $5 to $6
Best
Cosmic

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