Tag Oil Ltd · TSXV:TAO

Tag Oil — Investor Presentation (February 2016)

38 slides from Tag Oil's investor presentation, February 2016

Slide 1: A proven leader in New Zealand's oil & gas scene
TSX : TAO | OTCQX : TAOIF A proven leader in New Zealand’s oil & gas scene Winter 2016
Slide 2: Disclaimer
TSX : TAO | OTCQX : TAOIF BOEs Disclaimer 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
Slide 3: TAG Oil is a developing oil producer poised for growth in stable New Zealand
TSX : TAO | OTCQX : TAOIF TAG Oil is a developing oil producer poised for growth in stable New Zealand © 2016 TAG Oil Ltd., www.tagoil.com 3
Slide 4: Why New Zealand?
TSX : TAO | OTCQX : TAOIF Why New Zealand? ! Favorable commercial terms and low royalties ! Under-drilled, with world-class discovery potential ! Proven oil reserves of 534 million barrels ! Proven natural gas reserves of 7.3 TCF ! Underexplored with fewer than 300 wildcat wells drilled ! Energy-fri
Slide 5: Who is exploring for big oil in New Zealand?
TSX : TAO | OTCQX : TAOIF Who is exploring for big oil in New Zealand? © 2016 TAG Oil Ltd., www.tagoil.com 5
Slide 6: Why TAG Oil?
TSX : TAO | OTCQX : TAOIF Why TAG Oil? ! Experienced production, drilling and operations team ! Undervalued based on its assets ! Long life production with significant potential resources upside ! Strategic holdings with high-impact potential ! Strong balance sheet and no debt © 2016 TAG Oil Ltd., w
Slide 7: Foundation for Success
TSX : TAO | OTCQX : TAOIF Foundation for Success* Capital Structure* 62.2 million shares o/s; 67.4 million fully diluted Working Capital* $23 million in working capital, no debt, fully funded FY16 program with balanced drilling risk profile Proved & Probable 5,180,000 BOE (90% oil) at March 31, 2015
Slide 8: Production growth and value creation with running room to spare
TSX : TAO | OTCQX : TAOIF Production growth and value creation with running room to spare TAG’s quarterly production & revenue © 2016 TAG Oil Ltd., www.tagoil.com 8
Slide 9: Financial Snapshot
TSX : TAO | OTCQX : TAOIF Executive & Key Technical Team Financial Snapshot As of March 31st F2015 F2014 F2013 F2012 F2011 (in 000’s except EPS BT) 9 Months Production Revenue $ 44,032 $ 57,547 $ 44,591 $ 42,909 $ 13,088 Operating Profit 26,291 37,481 30,551 27,295 6,533 Net Operating CF 23,293 22,9
Slide 10: The current oil environment
TSX : TAO | OTCQX : TAOIF The current oil environment Strong underlying supply & demand fundamentals = a good time to invest © 2016 TAG Oil Ltd., www.tagoil.com 10
Slide 11: Oil is getting more expensive to produce
TSX : TAO | OTCQX : TAOIF Oil is getting more expensive to produce Add in another $20 to $25 per barrel for G & A, plus cost of debt to these production break-even costs, and most oil companies need $100+ per barrel just to break even. ©Source: 2016 TAG Oil Ltd.,Energy, Rystad www.tagoil.com Morgan
Slide 12: Low oil prices always correct
TSX : TAO | OTCQX : TAOIF Low oil prices always correct T. Boone Pickens may have been nine months off of his predictions, but Brent crude oil will get back up to $90 to $100 barrel. "The world got along fine with $100 oil," he told CNBC. © 2016 TAG Oil Ltd., www.tagoil.com 12
Slide 13: Demand will grow 1 million barrels a day, every year, for the next 15 years
TSX : TAO | OTCQX : TAOIF Demand will grow 1 million barrels a day, every year, for the next 15 years Rising demand + less drilling + higher extraction costs = higher oil prices (eventually) © 2016 TAG Oil Ltd., www.tagoil.com 13
Slide 14: China oil production and consumption
TSX : TAO | OTCQX : TAOIF w i t h o p l e N p e i n a … I L L I O i n C h 5 B l t h 1.3 ng wea o w i gr China oil production & consumption © 2016 TAG Oil Ltd., www.tagoil.com 14
Slide 15: Total Population (in billions)
s t t o TSX : TAO | OTCQX : TAOIF re c a o n f o u l a t i 3 0 p o p i n 2 0 d i a ’s h i n a In a k e C e r t India overtakes China in 2030 ov Total Population (in billions) Source: UN Population Division: Medium variant © 2016 TAG Oil Ltd., www.tagoil.com 15
Slide 17: Organic value creation growth opportunity
TSX : TAO | OTCQX : TAOIF Organic value creation growth opportunity Capex fuelled by established high netback production + share dilution minimized by cash flow x reserve-based growth = shareholder value • Drilling & recovery enhancements to boost existing reserves and production #1: Exploit Cheal •
Slide 18: TAG Oil: An established operator controlling a dominant footprint
TSX : TAO | OTCQX : TAOIF TAG Oil: An established operator controlling a dominant footprint ! Lightly explored across TAG’s acreage ! A proven & prolific basin with significant untapped potential ! Infrastructure 100% owned and operated by TAG Oil allows for quick tie-ins ! Just over 300 wells drill
Slide 19: 3 critical production facilities in place
TSX : TAO | OTCQX : TAOIF 3 critical production facilities in place To facilitate current and expected future production growth © 2016 TAG Oil Ltd., www.tagoil.com 19
Slide 20: Cheal: high-netback oil field, significant development upside
TSX : TAO | OTCQX : TAOIF Cheal: high-netback oil field, significant development upside Cheal-E1 is one example of unrecognized upside and robust future economic potential © 2016 TAG Oil Ltd., www.tagoil.com 20
Slide 21: High-graded development drilling locations provide long-term upside
TSX : TAO | OTCQX : TAOIF High-graded development drilling locations provide long-term upside ! Discovered upside in up- hole sands; many wells have 2 or more stacked reservoir intervals with only 1 interval currently producing ! Potential to double current resources by improved artificial lift tech
Slide 22: Development of the Cheal oil and gas field area substantially de-risked
TSX : TAO | OTCQX : TAOIF Development of the Cheal oil and gas field area substantially de-risked ! 36 drilled wells de-risks future drilling ! Permit-wide 3D seismic and a substantial drilling and workover inventory ! Stacked reservoirs = efficient development, reduced costs, risk, and footprint !
Slide 23: 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 over pressuring ! Conservative recoverable resource estimate fo
Slide 24: Sidewinder: Existing production and good exploration potential
TSX : TAO | OTCQX : TAOIF Sidewinder: Existing production and good exploration potential ! 100% working interest across 22,600 acres with full 3D coverage ! Sidewinder B Prospect is a stacked Mount Messenger Oil target ! Deep gas potential and additional prospectivity across the acreage ! 100% owned
Slide 25: High-impact offshore prospect
TSX : TAO | OTCQX : TAOIF High-impact offshore prospect TAG’s shallow water Kaheru exploration prospect is situated among several substantial discoveries and near infrastructure © 2016 TAG Oil Ltd., www.tagoil.com 25
Slide 26: Kaheru Prospect in prime hunting ground in a prolific discovery fairway
TSX : TAO | OTCQX : TAOIF Kaheru Prospect in prime hunting ground in a prolific discovery fairway © 2016 TAG Oil Ltd., www.tagoil.com 26
Slide 27: Ready markets for oil and gas
TSX : TAO | OTCQX : TAOIF Ready markets for oil and gas TAG oil is delivered to the Port of Napier for Asian markets, fetching premium undiscounted Brent pricing. TAG’s natural gas is piped into New Zealand’s main high-capacity pipeline for domestic consumption. © 2016 TAG Oil Ltd., www.tagoil.com 2
Slide 29: Have a "will-do" attitude
TSX : TAO | OTCQX : TAOIF Have a “will-do” attitude Intelligent planning, strong ethics and hard work will take you everywhere. © 2016 TAG Oil Ltd., www.tagoil.com 29
Slide 30: We work for our families, our children, and future generations
TSX : TAO | OTCQX : TAOIF We work for our families, our children, and future generations. © 2016 TAG Oil Ltd., www.tagoil.com 30
Slide 31: TAG supports the community and believes in team work in all things
TSX : TAO | OTCQX : TAOIF TAG supports the community and believes in team work in all things. © 2016 TAG Oil Ltd., www.tagoil.com 31
Slide 32: Celebrate success
TSX : TAO | OTCQX : TAOIF Celebrate success Everyone shares in our success. © 2016 TAG Oil Ltd., www.tagoil.com 32
Slide 33: What TAG safely believes
TSX : TAO | OTCQX : TAOIF What TAGsafely Work believes Safe is smart, and safety shows caring for people, the environment, and our investment. © 2016 TAG Oil Ltd., www.tagoil.com 33
Slide 34: Deliver superior investment performance
TSX : TAO | OTCQX : TAOIF Deliver superior investment performance TAG has transformed from explorer to proven, producing, development stage company. © 2016 TAG Oil Ltd., www.tagoil.com 34
Slide 35: Experienced Leadership Team
TSX : TAO | OTCQX : TAOIF Executive & Key Technical Team Experienced Leadership Team North American Expertise Global Experience Successful natural resource executive with deep expertise in Toby Pierce operations, capital markets, investment banking, and M&A Chief Executive Officer, BSc, MBA Internat
Slide 36: TAG flourishes in times of higher pricing and excels in times of low
TSX : TAO | OTCQX : TAOIF TAG flourishes in times of higher pricing…and excels in times of low ! Low cost producer receiving ! Large land base in discovery trend premium oil pricing; will be a first to allows for high impact exploration benefit from higher oil prices drilling, underpinned by establi
Slide 37: Why TAG is an attractive investment?
TSX : TAO | OTCQX : TAOIF Why TAG is an attractive investment? ! Unrecognized value of basic fundamentals and strong relative position against peer group. ! NAV of $4.40 per share on audited P2 reserves. In-house assessed NAV much higher. ! Trading at only 1.5x trailing cash flow ! Top tier producti
Slide 38: Thank You
TSX : TAO | OTCQX : TAOIF Thank You TAG Oil Ltd. Ashley Garnot, General Manager [email protected] 1-604-282-6384 885 West Georgia Street, Suite 2040 Vancouver, BC V6C 3E8 Canada www.tagoil.com

TAG Oil — Investor Presentation (February 2016) on 6ix

Tag Oil — Investor Presentation (February 2016)

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

Slide 2: Disclaimer

Slide 3: TAG Oil is a developing oil producer poised for growth in stable New Zealand

Slide 4: Why New Zealand?

Slide 5: Who is exploring for big oil in New Zealand?

Slide 6: Why TAG Oil?

Slide 7: Foundation for Success

Slide 8: Production growth and value creation with running room to spare

Slide 9: Financial Snapshot

Slide 10: The current oil environment

Slide 11: Oil is getting more expensive to produce

Slide 12: Low oil prices always correct

Slide 13: Demand will grow 1 million barrels a day, every year, for the next 15 years

Slide 14: China oil production and consumption

Slide 15: Total Population (in billions)

Slide 16: Operations

Slide 17: Organic value creation growth opportunity

Slide 18: TAG Oil: An established operator controlling a dominant footprint

Slide 19: 3 critical production facilities in place

Slide 20: Cheal: high-netback oil field, significant development upside

Slide 21: High-graded development drilling locations provide long-term upside

Slide 22: Development of the Cheal oil and gas field area substantially de-risked

Slide 23: Cardiff: A large potential resource

Slide 24: Sidewinder: Existing production and good exploration potential

Slide 25: High-impact offshore prospect

Slide 26: Kaheru Prospect in prime hunting ground in a prolific discovery fairway

Slide 27: Ready markets for oil and gas

Slide 28: What TAG believes

Slide 29: Have a "will-do" attitude

Slide 30: We work for our families, our children, and future generations

Slide 31: TAG supports the community and believes in team work in all things

Slide 32: Celebrate success

Slide 33: What TAG safely believes

Slide 34: Deliver superior investment performance

Slide 35: Experienced Leadership Team

Slide 36: TAG flourishes in times of higher pricing and excels in times of low

Slide 37: Why TAG is an attractive investment?

Slide 38: Thank You