Tag Oil Ltd · TSXV:TAO

Tag Oil — Investor Presentation (January 2017)

22 slides from Tag Oil's investor presentation, January 2017

  1. Slide 1: A proven leader in New Zealand's oil & gas industry

    TSX : TAO | OTCQX : TAOIF A proven leader in New Zealand’s oil & gas industry January 2017

  2. Slide 2: Disclaimer

    TSX : TAO | OTCQX : TAOIF Disclaimer BOEs The Company has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to “BOEs.” BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy eq

  3. Slide 3: An established operator controlling a dominant footprint

    TSX : TAO | OTCQX : TAOIF An established operator controlling a dominant footprint  Leading operator in New Zealand with over 40 wells drilled to date  Focus on low cost onshore operations  A proven & prolific basin with significant untapped potential  Lightly explored across TAG’s acreage – jus

  4. Slide 4: Foundation for Success

    TSX : TAO | OTCQX : TAOIF Foundation for Success Working Capital*  $14 million in cash with no debt  $19 million in working capital  Fully funded in FY2017 with a balanced work program Capital Structure*  62.2 million shares o/s; 67.4 million fully diluted Proved & Probable  3.6 mm BOE (93% oil

  5. Slide 5: Experienced Leadership Team

    TSX : TAO | OTCQX : TAOIF Experienced Leadership Team Alex Guidi International oil and gas entrepreneur with 30 years leadership and executive experience in New Zealand and Australasia Chairman, TAG Oil Founder Toby Pierce Successful natural resource executive with deep expertise in operations, capi

  6. Slide 6: Strong Production Base

    TSX : TAO | OTCQX : TAOIF Strong Production Base 2,500 $125 2,000 $100 Production stabilized ~1,250 boepd Avg. Production (BOEPD) Brent Oil price (US$) 1,500 $75 1,000 $50 500 $25 0 $0 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 2013 2014 2015 2016 2017 Oil Production bpd

  7. Slide 7: Healthy Operating Netbacks

    TSX : TAO | OTCQX : TAOIF Healthy Operating Netbacks C$120 $106.45 $100.51 C$100 C$80 Realized Price (C$/BOE) $70.65 $72.16 $65.81 $62.88 $61.24 $66.68 $58.12 C$60 $49.38 $46.85 $45.98 C$40 $40.78 $35.61 $33.46 $29.17 C$20 $19.75 $18.33 $18.61 $13.57 C$0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2015 2016 2017

  8. Slide 8: Cheal: Long-term upside from high-graded development drilling

    TSX : TAO | OTCQX : TAOIF Cheal: Long-term upside from high-graded development drilling  Core producing area for TAG in New Zealand  100% owned infrastructure allows for low cost commercialization – throughput capacity allows for rapid expansion  Remaining upside present in discovered up-hole san

  9. Slide 9: Cheal: Development substantially de-risked

    TSX : TAO | OTCQX : TAOIF Cheal: Development substantially de-risked  36 wells drilled to date provide excellent well control and subsurface understanding  Permit-wide 3D seismic and a substantial drilling and workover inventory  EOR waterflood pilot program has demonstrated ability to extend res

  10. Slide 10: Cheal: Waterflood Analogy

    TSX : TAO | OTCQX : TAOIF Cheal: Waterflood Analogy 400 Waterflood commences (June 2010) 350  Initial production declined from ~350  43 months after commencing waterflood, production  Production at May 2016 was ~97 bpd to 23.2 bpd over 32 months had climbed to ~160 bpd bpd 300  8.4% decline per

  11. Slide 11: Greater Cheal Area Top Projects

    TSX : TAO | OTCQX : TAOIF Greater Cheal Area Top 10  Numerous opportunities identified in the greater Cheal Area which have the ability to significantly increase both recoverable reserves and production  Cleanout program on B6 and B7 and numerous re-perforations planned for next three to six month

  12. Slide 12: Cardiff: A large potential resource

    TSX : TAO | OTCQX : TAOIF Cardiff: A large potential resource  Stratford/Cardiff high spans ~12 km long by 3 km wide  Reserve size and deliverability potential are greater than shallow drilling program (Cheal) due to greater depth and higher pressures  Conservative recoverable resource estimate f

  13. Slide 13: Sidewinder: Oil & gas production with exploration upside

    TSX : TAO | OTCQX : TAOIF Sidewinder: Oil & gas production with exploration upside  100% working interest across 22,600 acres with full 3D coverage  Sidewinder B Prospect is a stacked Mount Messenger Oil target – tested 254 bpd over 24 hour period – additional wells to potentially bring online  1

  14. Slide 14: Supplejack-1 well results

    TSX : TAO | OTCQX : TAOIF Supplejack-1 well results  On November 8, 2016, TAG announced the successful testing of the Supplejack-1 well – flow rates of up to 7.2 mmscfpd (1,200 boepd) through 32/64” choke – well pressures remained at over 1,000 psi  The well has now been shut in for further testin

  15. Slide 15: Puka / Shannon: Proven production with high-impact exploration

    TSX : TAO | OTCQX : TAOIF Puka / Shannon: Proven production with high-impact exploration  On June 6th, 2016 TAG announced the acquisition of a 70% interest in PEP 51153 containing the Puka oil field and Shannon oil prospect – NZ$250,000 acquisition cost out of liquidation from Kea Petroleum – Low i

  16. Slide 16: PL 17 – First step into Australia

    TSX : TAO | OTCQX : TAOIF PL 17 – First step into Australia  PL 17 is located in the Surat Basin of Australia, covering an area of 104 km2 (25,700 acres) – ~20 km from the Moonie Oil Field which has produced 23 mmb to date  Two existing discoveries on the block which have produced on and off for ~

  17. Slide 17: Acquisitions: Leveraging our balance sheet

    TSX : TAO | OTCQX : TAOIF Acquisitions: Leveraging our balance sheet  TAG looking to acquire assets or partner with groups on assets within or slightly beyond our current financial capabilities.  Ideal opportunities are: – Onshore and conventional – A mix of natural gas and oil – A range of shallo

  18. Slide 18: 2017 Capital Program and Major Activities

    TSX : TAO | OTCQX : TAOIF 2017 Capital Program and Major Activities Field Activity April May June July August September October November December January February March Cheal E E7 Re-perforation Cheal E Cheal E Q1 E5 Rod pump Waterflood Q3 Q4 Cheal E Exploration wellpad construction  Cheal E4 re-pe

  19. Slide 19: Why TAG Oil?

    TSX : TAO | OTCQX : TAOIF Why TAG Oil?  Experienced production, drilling and operations team  Excellent position from growth at current and higher oil prices  Long life production with significant potential resources upside  Strategic holdings with high-impact potential  Low cost, high netback

  20. Slide 20: Appendix

    Appendix

  21. Slide 21: New Zealand's Oil and Gas Industry

    TSX : TAO | OTCQX : TAOIF New Zealand’s Oil and Gas Industry Source: Taranaki Report, March 2015 © 2016 TAG Oil Ltd., www.tagoil.com 21

  22. Slide 22: Thank You

    TSX : TAO | OTCQX : TAOIF Thank You TAG Oil Ltd. Chris Beltgens, VP, Corporate Development [email protected] 1-604-282-6372 885 West Georgia Street, Suite 2040 Vancouver, BC V6C 3E8 Canada www.tagoil.com

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