TAG’s March 2017 fiscal year budget, of approximately C$7.6 million, will be funded entirely by forecast cash flow and working capital, with the goal of ending the fiscal year with at least C$10 million of cash in hand.
Planned activity includes increasing production through the implementation of a water-flood programme at the Cheal A, B and E-Sites; the installation of a rod pump in the Cheal-E1 well and the reactivation of several shut-in wells; and the acquisition and reprocessing of seismic data on the Cheal G and Wai-iti permits for appropriate future in-fill and exploration drilling opportunities.
A further C$4.6 million of incremental capital expenditure depends on oil prices improving significantly and may include constructing two drilling pads for future exploration opportunities and drilling a Sidewinder North (PEP 57065) exploration well in late 2016.
And TAG is estimating that its 2016-17 revenue from operations will be about C$22 million, with production averaging approximately 1200 barrels of oil equivalent per day (boepd), with 80% of that being crude oil).