TAG Oil has reported the filing of its financial results for the interim period ending June 30, 2024.
Financial highlights over the period include that the Company had C$7.7 million (March 31, 2024: C$12.7 million) in cash and cash equivalents and C$7.3 million (March 31, 2024: C$9.4 million) in working capital and has no debt.
Operations Update
The Company made significant progress at the BED4-T100 horizontal well, targeting the unconventional Abu Roash 'F' ('ARF') reservoir in the Badr Oil Field ('BED-1'), Western Desert, Egypt. Following flow back operations in April, the T100 well was cleaned out with coiled-tubing and a jet pumping artificial lift system was installed to establish stable flow from the well. Intermittent oil production continued to produce oil and unload fracture fluid and is being shipped to nearby processing facilities. Construction of an oil delivery station at the General Petroleum Corporation Abu Sennan receiving facility is ongoing and should be completed in due course. Gross field production from when the jet pump was installed on June 21, 2024, through to the end of July 2024 (online for ~25 days over this period) averaged 373 b/d of fluid (~256 b/d of oil). Total oil produced from the T100 well to date is over 12,000 barrels. Planning of TAG Oil’s next horizontal well is in progress and will incorporate learnings and information that were obtained in drilling, completing, and producing the T100 well. Plans are also being developed to resume production from the BED 1-7 vertical well.
As the Company continues to manage its costs and allocate the necessary resources toward the development of the ARF reservoir in BED-1, progress is also being made on potential strategic partnerships and acquisition opportunities in Egypt. These efforts aim to drive growth in multiple zones, including the ARF reservoir, to expand TAG Oil’s footprint in the Western Desert. Additionally, the Company is exploring other potential strategic acquisition opportunities in the broader Middle East and North Africa region, targeting both conventional and unconventional oil and gas potential.
Source: TAG Oil
