TAG Oil Ltd. V.TAO

Market is waaay over reacting

[KaiPar07]

Wow, amazing how quickly investors panic. Whatever, I'm buying more stock. Your loss, my gain.

[windymayor1]

Yup. Over 50% sold by house 1 Anonymous. The project is a go! Hz frac works!

[oilinvestor52]

yes decent result however company will need to raise more capital to further persue the play. dilution coming

[jake1444]

They had 19.5 million in cash as of March 31. Curious where they sit now.

[GoJerez2]

Yep bankers smell blood. Agreed way over done. They have enough for another well. Could do a small raise, drill 1-2 wells and tie all 3 into pipe. Possible to produce 2500/d  will need a large raise for the big picture though.  Succesful well but difficult position. We should be trading .60 to .75

[Surfit]

I have no knowledge on fracking but they seem to have got very close to their targets, so why has the market reacted badly, or is it just profit taking.  With regards to financing, I would have thought that the option moving forward to bring in a farm in partner or finance group? At this point further fund raising via share placment would not raise the required funding for the full field

[jake1444]

The audio update is worth listening to. Will be installing a jet pump on the new horizontal well. Expect to produce in excess of 800 boepd for several months. Will be drilling another well by years end. Looking at acquisitions. Modelling shows 1000 meter horizontal wells are expected to produce 1000 boepd. Their answers were careful and cautious. No pie in the sky answers. Underpromise and

[oilinvestor52]

I understand the project has good potential however how much more dilution is coming on top of the 180M shares already out.  

[moneysworth]

Don't think the insiders with huge positions are gonna want too much more dilution, especially Abby with 5 1/2 mil shares, Wilson with 6 mil and Askar with just under 30 million shares.... to name but a few! They will have access to the capital they'll need, while keeping dilution to a minimum as the play will become self funding relatively quickly.  Sellers may soon have second

[oilinvestor52]

"play will become self funding relatively quickly". Moneysworth what is the timing you are projecting? Also you don't expect much dilution? What method of funding are you antisipating?

[DocPat]

Hello Oili, My bet is on divestment of non-core assets. They are given zero value by investors and they now have plus or minus a 1000 bls/d of their own and according to Shaw, if they can get that 1000 meter well drilled, an additional 3000 bopd or a gross  seven million and change a month. That will certainly get the markets attention and with the two existing wells get them to the self

[oilinvestor52]

What are the non core assets that you are referring to? Do you mean their royalties from the previous NZ production? Best regards. Donald

[DocPat]

Yes .. the royalties from NZ throw off good coin and the operators would want to consolidate. Seems like a natural.  Doc.

[oilinvestor52]

What is the estimated the value of the NZ royalty?

[RockLobster1]

Hopefully this is just speculators betting on one drill result and expecting the moon.... I have been adding from 46 cents to today at 41... so getting my avg down.  The news seems like a success, in that it achieved what was hoped for.... But patience needed for the next while until the next one.  Meanwhile seems a great price to be adding compared to 60-70 cents before any results