TAG Oil Ltd. (TSX:T.TAO, Stock Forum) reports a 300% increase in reserves and a 227% increase in production revenue in its year-end March 31 financial results.
According to the press release, on March 31st, TAG was debt free with approximately $105 million in cash on the balance sheet.
Highlights include, proved and probable reserves increased to 6.624 million BOE (barrel of oil per equivalent) compared to 1.68 million BOE at March 31, 2011 (82% oil and 18% gas) and production revenue increased to $43 million, up from $13 million.
Also, in the East Coast Basin, TAG has entered into a farmout agreement with Apache Corp to explore and potentially develop the major unconventional resource potential believed to exist in the tight oil source-rock formations that are widespread over the Company's acreage.
Furthermore TAG has drilled fifteen consecutive successful wells on the Taranaki basin, located in the west of New Zealand’s North Island, which has necessitated infrastructure upgrades that are now underway.
These upgrades will allow TAG to produce an additional 4000 BOE per day currently sitting behind pipe, and any additional production arising from further successful wells by March 31, 2013.
The Canadian-based production and exploration company with operations focused exclusively in New Zealand has 100% control over all its core assets, including oil and gas production infrastructure.
On Tuesday, TAG Oil was trading for$7.93 a share. The company has a market cap of $473 million, based on $59.6 million shares outstanding. The 52-week high and low was $11.12 and $4.70 respectively.