TAG Oil Ltd. (the “Company” or “TAG Oil”) (TSX: TAO and OTCQX: TAOIF) confirms that ERC Equipoise Ltd. (“ERC”), a qualified reserves evaluator in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook, has completed its independent reserves assessment on the Company’s interests within the Cheal (PMP 38156), Cheal East (PEP 54877) and Sidewinder (PMP 53803) permits, dated and effective March 31, 2017. ERC has assigned a pre-tax net present value of $82.12 million (FY2016: $45.92 million), using a 10% discount rate to the Company’s net working interest proven plus probable (“2P”) reserves.
As quoted in the press release:
Toby Pierce, CEO commented, “I am very pleased with TAG Oil’s reserve additions in fiscal 2017. Not only did we replace our production, but we also managed to increase reserves through our field activities without drilling a conventional production well. The Company is well placed to grow our asset base over the next year and beyond as we move on to the second of up to five exploration wells following the successful completion and tie-in of the Cheal-E8 conventional oil well. Despite the recent weaker Brent oil prices, TAG Oil continues to maintain a strong balance sheet, positive cash flow and an active work program over the remainder of fiscal 2018.”