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TAG Oil Ltd. V.TAO

Alternate Symbol(s):  TAOIF

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

Comment by DocPaton Apr 13, 2023 9:04pm
202 Views
Post# 35394353

RE:RE:RE:For those unaware

RE:RE:RE:For those unawareBoy, that's a tough one. The half a billion bbls is Original Oil In Place (OOIP) and so we have to understand what the recovery factor would be.

TAG is using the Eagle Ford as an analog (See their presentation:https://tagoil.com/wp-content/uploads/2023/04/TAG-Corporate-Presentation-April-2023.pdf ) but looking at the Satista website it is interesting to not that the Eagle Ford had the lowest costs of finding to the peers listed in Statista's report.( https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/ )

From the same report the Eagle Ford has produced at over 2 million bbls/day and if they are right TAG has 100% of a field that has very similar in size and characteristics.

So what is it worth?

The best numbers I could find for the Eagle Ford were from 2019 when oil was selling for about $69/bbl where deals we transacting for $31,000/flowing bbl. (See attached: https://btuanalytics.com/shale-production/acreage-value-in-decline/ ). It was also noted in one of the reports above that the Eagle Ford was one of the most profitable with wells paying out in 7 months.

And so what's it worth?

Well, it's still exploration until they have their first succesful Hz well but if successful, maybe you can tell me what 2 million boe/d time $31,000/boe is worth ;)

All of this is just in my humble opinion, I am in no way an expert on any of it and the links provided are just from Google searches.

All the best to longs :)


Doc.

For any who follow me, I also like Ominica Mining and Metals (OMM) trading at about a dime today. ;)

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