Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/tag-oil-reports-reduction-in-forward-guidance-and-.shtmlTAG Oil reports reduction in forward guidance and reduced capital spending
TAG Oil Ltd. is cutting its forward guidance and planned capital expenditures for the remainder of fiscal 2016 in response to the low commodity price environment,
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TAG Oil Ltd. is cutting its forward guidance and planned capital expenditures for the remainder of fiscal 2016 in response to the low commodity price environment, and due to a slower than expected ramp up of our workover program in the Taranaki Basin of New Zealand. TAG will focus on preserving capital, continuing with a reduced workover program and reducing costs.
GUIDANCE AND OUTLOOK FOR THE REMAINDER OF FISCAL YEAR 2016
•TAG is reducing its 2016 average production guidance down from 1,900 BOE/d to 1,400 BOE/d and expects to exit its fiscal 2016 year-end at approximately 1,400 BOE/d. •TAG is reducing its 2016 forecast capital expenditures down from $23 million to approximately $13 million with $6 million already spent. •Full year 2016 operating cash flow is expected to be approximately $13 million versus the $22 million forecast at the beginning of the year. •TAG is now budgeting and running all of its economics based off of a US$45 per barrel Brent oil price for the remainder of the fiscal year. •TAG will continue to focus on lower cost workovers, artificial lift optimization and re-perforations of certain intervals. To preserve capital, these programs have been prioritized over drilling new wells. Additional programs will include a water-flood pilot study. •TAG expects to end fiscal 2016 with at least $15 million in cash and cash equivalents assuming US$45 per barrel Brent oil price for the remaining six months of operations.
