TAG Oil reported results for the fiscal year ending March 31, 2015. Revenues were $53.7 million, with average daily production remaining flat at 1,856 BOE/d (77% oil) over last year however.
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TAG’s net oil production increased by 29% for the fiscal year to 1,425 bbl/d compared with 1,107 bbl/d in fiscal year 2014.
TAG had $8 million in working capital at March 31, 2015 fiscal year-end, with no debt and 62,361,452 common shares outstanding.
Annual net production achieved in fiscal year 2015 of 605,000 BOE (77% oil) with average net oil production increasing by 29% for the fiscal year to 1,425 bbl/d compared with 1,107 bbl/d in fiscal year 2014.
Total revenue decreased by 7% to $53.7 million compared with $57.6 million in fiscal year 2014.
Revenue from oil sales increased 3% to $47.4 million compared with $45.8 million due to increased oil production (29%) offset by lower oil pricing (19%). Revenue from gas sales decreased 74% to $2 million compared with $7.7 million due to declining Sidewinder gas production. Revenue generated from electricity sales contributed $4.4 million compared with $3.9 million due to TAG’s 49% ownership of Coronado Resources Ltd.
Operating Netbacks decreased by 11% to $52.84 per BOE compared with $59.63 per BOE in fiscal year 2014. The decrease is mainly due to the 19% decrease in oil pricing.
The company recorded asset impairment costs of $80.9 million as a result of the company relinquishing exploration permits, impairing assets due to current economic conditions and deferring exploration plans.
Net loss after tax for the fiscal year 2015 was $69.8 million compared to a net income of $7.7 million in fiscal year 2014. Excluding impairment expense, on a comparative basis, this equates to a net income before tax of $11.1 million for fiscal year 2015 compared to $8.7 million for fiscal year 2014.
With an effective date of March 31, 2015, Sproule International Limited, a qualified reserves evaluator in accordance with NI 51-101 and the COGE Handbook, assigned 1p, 2p and 3p reserves of 1,907,000 BOE (90% oil), 5,180,000 BOE (90% oil) and 7,060,000 BOE (90% oil), respectively. ■