TAG Oil Ltd. V.TAO

G and A is over-the-top

[oilinvestor52]

Comparing to the Q ended June 30, 2022, G and A more than doubled to $1,353,000. for the three months ending June 30, 2023. How does the Board of a Company with esentially zero production justify this and salaries of near $1 miilion per year to Abby Badwi the Chairman?

[DocPat]

Hey Oili,  I am a fiscally prudent person as well, but I also happy to pay for talent. This team is talented and they have projected and executed on the recompletion of the ARF very well.  As well, with Abi now onboard the probability of further accretive deals is promising.  I saw similar hand wringing over at VLE just before they did their 25,000 bbl/d acquisition and the stock

[oilinvestor52]

Not sure about the analogy to the Eagle Ford. Sounds like a stretch but we are all entitled to dream about it. All i know for sure is the management team is dramatically overcompensated for a company with no production. 

[DocPat]

Good morning Oili,  Yes, as said,  I am also fiscally conservative but being penny wise and pound foolish is never the road to riches. You questioned my reference of the Eagle Ford analogy .. perhaps you have not been reading the Company's presentations? The rock and reservoir are almost a complete analog to the Eagle Ford.  Very similar depositional model, and very very

[oilinvestor52]

Don't celebrate until you perferate as the saying goes. It's fun to dream though! I hope TAG's horizontal well works and the play doen't fall over because that's what's holding up the $100M market cap. It has a shot but the issue I have is this so-called big gun management team (as you have described) have delivered no production in 2.5 years yet burned up millions in

[DocPat]

Yes, back in the day in our public co. we were convinced by our Board to not take a salary for years .. put the money in the ground they said. At the end of the day none of it was appreciated and we simply got hosed. I wouldn't do it again, shouldn't have done it the first time.  Over at VLE there was, on this board, endless criticism about salaries being taken, no production yada