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Source: Thinkstock
Canadian-based oil company Tag Oil has doubled production revenue in New Zealand in the past year to $C13 million ($15.7 million) and made an operating profit of $C6.5 million, also double last year's result.
After expenses, Tag made a relatively small net loss of $C453,001, compared with a loss of $C2.6m in the previous financial year.
Tag produced 150,742 net barrels of light oil in Taranaki in the year to March 2011.
The oil was sold at an average price of $C86 a barrel with production costs reduced to less than $C20 a barrel.
During the year a significant gas discovery at the Sidewinder-1 well in Taranaki was followed by three more Sidewinder discoveries.
During the March year, production averaged 413 barrels of oil equivalent each day, but production is now up to 950 barrels of oil equivalent.
Tag said it expected to ramp up to more than 5000 barrels of oil equivalent as it brought on new production in coming months.
As at the end of March, Tag's independently assessed proven and probable reserves stood at 1.67 million barrels of oil equivalent.
That included an initial estimate from Sidewinder-1 well alone, as Tag's five subsequent finds were completed after the end of the financial year.
The ramp up in production from new gas and oil wells is waiting on the upgrade work at the Cheal production facility and the commissioning of the Sidewinder production station, both set to be finished in coming months.
The next phase of exploration drilling will start in September, targetting Mt Messenger and Urenui formation prospects, as well as deeper "wildcat" targets that have not been drilled before.
Tag remained debt free and had working capital of $C69 million at the end of March.
