TAG Oil Q4 revenue from oil and gas sales increased 16%
Staff Writer |
TAG Oil reported third quarter results for the fiscal year ending March 31, 2017, in which oil and gas production, revenue from sales, and operating netbacks increased.
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Production over the month of February to date is above guidance with a current net daily average rate of 1,293 BOE/d (79% oil).
Revenue from oil and gas sales increased by 16% for the quarter ended December 31, 2016, to $6.0 million from $5.2 million for the quarter ended September 30, 2016. The 16% increase is due to a 14% increase in average Brent oil prices.
Revenues generated from oil and gas sales increased by 19% for the quarter ended December 31, 2016, to $6.0 million from $5.1 million for the quarter ended December 31, 2015.
The increase is attributable to a 25% increase in average Brent oil prices, partly offset by a reduction in total gas sold by 189 BOE/d or 74% due to the compressor being offline for part of October, 2016.
Operating netbacks increased by 28% for the quarter ended December 31, 2016, to $23.86 per BOE compared with $18.61 per BOE for the quarter ended September 30, 2016.
The increase is attributable to a 14% increase in average Brent oil prices, partly offset by a 7% increase in production costs per BOE.
Operating netbacks increased by 76% for the quarter ended December 31, 2016 to $23.86 per BOE compared with $13.57 per BOE for the for the quarter ended December 31, 2015.
The increase is attributable to 25% increase in average Brent oil prices, partly offset by a 25% increase in production costs per BOE.
The increase in production costs in both instances is due to completion of the Cheal-B5 workover in October 2016.
Capital expenditures totalled $1.5 million for the quarter ended December 31, 2016 compared to $3.2 million for the quarter ended September 30, 2016.
The majority of the expenditure in Q3 2017 related to the Cheal-A and Cheal-E waterflood, Sidewinder gas lift and Supplejack Upper Mt. Messenger test projects. ■