TAG Oil Ltd · TSXV:TAO
TAG Oil — Investor Presentation (October 2014)
23 slides from TAG Oil's investor presentation, October 2014
Slide 1: New Zealand's Pure Play
TSX : TAO | OTCQX : TAOIF People + Assets + Execution = Results New Zealand’s Pure Play October 2014
Slide 2: Be the #1 Oil & Gas Producer in New Zealand
Be the #1 Oil & Gas Producer in New Zealand Core Purpose: Core Values: Unlock New Zealand’s •! People Matter Most Potential •! TAG Lives Safely •! Our Community Counts •! Have a Will-Do Attitude •! Work Hard & Celebrate Success © 2014 Tag Oil Ltd., www.tagoil.com 2
Slide 3: Executive & Key Technical Team
Executive Summary Executive & Key Technical Team Executive & Key Technical Team North American Expertise New Zealand Knowledge Garth Johnson 17 years of international oil and gas experience in Austral-Asia with a significant focus on finance, New Zealand acquisitions, exploration Chief Executive Off
Slide 4: Foundation for Growth
Executive Summary Executive & Key Technical Team Foundation for Growth As of March 31st F2014 F2013 F2012 F2011 Production Revenue $ 57,546,899 $ 44,591,201 $ 42,908,655 $ 13,088,423 Operating Profit 37,481,174 30,550,658 27,295,058 6,533,061 Net Operating CF 22,931,823 34,211,862 15,559,530 (1,154,
Slide 5: Foundation for Success
Executive Summary Foundation for Success Capital Structure 63.7 million shares o/s; 68.49 million fully diluted Working Capital $38 million in cash, no debt, fully funded FY15 and FY16 program with balanced drilling risk profile Proved & Probable 5,898,000 boe (94% oil) at March 31, 2014 Reserves* A
Slide 6: 2.8 Million Acres of Opportunity
Executive Summary 2.8 Million Acres of Opportunity Low-Risk Shallow Development !! Drilling success began in 2010 !! Years more low-risk development drilling !! High net back light oil production High-Impact Deep Exploration !! Undiscovered resource potential (P50): 477 BCF & 45 mmbls(1)(2) !! Prosp
Slide 7: Taranaki Basin
Taranaki Basin © 2014 Tag Oil Ltd., www.tagoil.com 7
Slide 8: Taranaki Basin Overview
Taranaki Basin North Island: West Coast Taranaki Basin Overview At a Glance !! Proven under-explored basin: 600 million barrels of oil and 7 TCF of gas reserves* !! Current daily production: 55,000 bbls oil & 460 mmcf gas* !! Significant reserve expansion opportunities !! Onshore target prospect siz
Slide 9: Taranaki Basin Discoveries and Production
Taranaki Basin Taranaki Foundation for Success Taranaki Basin Discoveries and Production Cheal*, Sidewinder*, & Greater Cheal** Shallow Drilling TAG Oil Avg. Daily Production & Revenue Per Qtr !! $3 million wells (drilled and completed) BOE/d !! 30 wells drilled in past three years 2,500 $15 TAG Pro
Slide 10: Taranaki Basin Deep Prospects are Drill Ready
Taranaki Basin Taranaki Foundation for Success Taranaki Basin Deep Prospects are Drill Ready Cardiff, Heatseeker and Hellfire (100%) !! Undiscovered Resource Potential Assessments total 476 Bcf + 18.17 mmbls cond. (p50)(1)(2) !! Gas price in 2013: $5.75/MCF with prices forecast to ~$6 to $8/MCF !! H
Slide 11: Taranaki Basin Shallow Offshore Prospect
Taranaki Basin Taranaki Foundation for Success Taranaki Basin Shallow Offshore Prospect Kaheru Drilling Prospect (40%) !! 77,039 gross offshore acreage (Partners: 35% NZOG, 25% Beach Petroleum) !! Operated by NZOG (partner in Tui & Kupe, New Zealand’s newest offshore production) !! Shallow water (~2
Slide 12: East Coast Basin
East Coast Basin © 2014 Tag Oil Ltd., www.tagoil.com 12
Slide 13: High Impact: Fractured Source Rock Play
East Coast Basin High Impact: Fractured Source Rock Play Multi-Billion Barrel Potential !! Widespread and thick oil and gas seeps identified over millions of acres !! 39.8 billion bbls of OOIP (p10), 12.65 billion bbls of OOIP (p50), and 4.02 billion bbls of OOIP (p90) in 200,000 acres of TAG land(1
Slide 14: Size of the Prize
East Coast Basin Size of the Prize Development Potential !! Capex of $4.7 billion, 2017 to 2025 !! 5 rigs / 60 wells per year !! 8 years to get to 100,000 boe/d !! Decades of development !! Potentially shift NZ’s economy !! $100 per barrel of oil; 8 billion barrels potentially recoverable = $1 trill
Slide 15: Ngapaeruru-1, Drilled April 2013
East Coast Basin Ngapaeruru-1, Drilled April 2013 The East Coast Basin’s First Ever Unconventional Test Well Reservoir Characterization Study ("RCS") !! Source rock 293 meters thick, highly provides the first true unconventional data fractured, and each fracture zone set ever acquired in the Basin a
Slide 16: Additional East Coast Basin Wells
East Coast Basin Additional East Coast Basin Wells Waitangi Valley-1 Oil Seeps Waitangi-Valley-1 Punawai-1 !! Spudded July 2014 near historic shallow Waitangi-1 well, with 50 degree API oil !! Targeted deeper basinal setting than Ngapaeruru-1, to identify increased TOC contents of the reservoir !! W
Slide 17: Canterbury: An Emerging Frontier Basin
Canterbury Basin Canterbury: An Emerging Frontier Basin !! 1.2 million acres of conventional and unconventional targets in proven hydrocarbon system !! Seeps and offset wells confirm active hydrocarbon system !! Prospect is interpreted as closed structure up-dip of offshore source !! Substantial his
Slide 18: Drilling Program
Drilling Program © 2014 Tag Oil Ltd., www.tagoil.com
Slide 19: Taranaki Funds High-Impact Opportunities
Drilling Program Disclaimer Taranaki Funds High-Impact Opportunities Undiscovered Resource Potential Targeted (net to TAG)*(1)(2) Prospect name Gas (Bcf) Oil/Condensate (MMbbls) P90 P50 P10 P90 P50 P10 Cheal-PMP - - - 0.45 1.64 2.39 Cheal-JV - - - 3.55 7.92 17.79 Sidewinder - - - 0.18 0.44 1.14 Card
Slide 20: Convert "Potential" to Reserves – Catalysts
Drilling Program Disclaimer Convert “Potential” to Reserves – Catalysts* (1)(2) Gas Oil / cond Anticipated Prospect name Operation Bcf P50 Mmbls P50 Timing Cheal-B9 & B10 - 1.04 Drill 2 wells On production Waitangi Valley-1 TBD TBD Drilled 1 well P&A Drill 1 Well and recomplete 1 Cheal-Joint Venture
Slide 21: Anticipated FY15 Work Program & Capex Potential
Drilling Program Disclaimer Anticipated FY15 Work Program & Capex Potential* April 1 2014 Area of Focus to March 2015 Details Taranaki Shallow $34 million 8 wells, seismic & optimization Taranaki Offshore ** $5 million Prepare to drill 1 well East Coast Unconventional $11 million 1 well Canterbury F
Slide 22: Definitions and Forward-Looking Statements
Definitions and Forward-Looking Statements Undiscovered Resources(1) Undiscovered Hydrocarbon-In-Place (“OOIP”), equivalent to undiscovered resources or undiscovered resource potential is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discov
Slide 23: Thank You
Thank You TAG Oil Ltd. 885 West Georgia Street, Suite 2040 Vancouver, BC V6C 3E8 Canada 1-604-682-6496 www.tagoil.com