Bro braus tagoil energy oct2015

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COMPANY OVERV I EW

Tasman Australia27 Jackson StreetBassendean WA 6054Ph: +61 8 9379 [email protected]

Tasman United Arab EmiratesPO Box 262559Jebel Ali Free Zone, DubaiPh: +971 4 881 [email protected]

Tasman New Zealand13 De Havilland Drive WestBell Block, New Plymouth 4312Ph: +64 6 755 [email protected]

YOUR PARTNER FOR THE FUTUREFor over 35 years, the Tasman group have been a leading provider of equipment and services to the offshore, onshore and geothermal drilling markets.

www.tasmanoiltools.com

Tag OilAcquiring successWith an established presence throughout New Zealand, TAG Oil is poised for growth. TAG Oil CEO Toby Pierce discusses how the company plans to do so through smart operations and strategic acquisitions. Written by: Robert Spence Produced by: Vince Kielty

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Tag OilAcquiring successWith an established presence throughout New Zealand, TAG Oil is poised for growth. TAG Oil CEO Toby Pierce discusses how the company plans to do so through smart operations and strategic acquisitions. Written by: Robert Spence Produced by: Vince Kielty

Photo credits: Rob Tucker and Robert Earnest

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COMPANY NAME

Vancouver-based TAG Oil continues to thrive in New Zealand as a major gas

and oil operator. With a strong production foundation and cash-positive assets, the company has positioned itself—financially and operationally—to deliver shareholder value despite the tough market conditions of the sector.

With an established presence in New Zealand, TAG Oil is primed to continue its growth trend and begin exploring new possibilities in other territories.

Poised for growth The company’s success is clearly defined through its portfolio of assets in the region.

S E C T O R

www.tago i l .com 5

COMPANY NAME

TAG owns 16 exploration and production permits in the Taranaki Basin, currently operating 10 of those, including its 40 percent interest in shallow water offshore Taranaki, and interests in the East Coast and Canterbury Basins.

“TAG’s East Coast prospects are in the early exploration stages, with vast potential once oil prices recover and

it makes sense to continue there,” said Toby Pierce, chief executive officer and director of TAG Oil.

Undergoing more immediate activity is the company’s producing acreage in the main Taranaki production fairway. Assets include the 100 per cent-owned Cheal and Sidewinder oil and gas fields in the onshore Taranaki Basin, the Cardiff

Ryan MansomNational Practice Leader Australia / New Zealand

Specialist Insurance Brokers

www.ajg.com.au

+61 417 348 091

for the Oil and Gas Industry

www.ajg.com.au

[email protected]

“Founded in 1927, Arthur J. Gallagher is a global leader in insurance broking and risk management services, offering specialist expertise in the oil and gas sector both for Operators and Contractors alike.”

TAG OIL E N E R G Y

www.tago i l .com 7

Deep gas discovery, and the Kaheru Offshore JV. Earlier this year, TAG underwent an extensive

geotechnical and engineering review over the Taranaki development and exploration acreage to review the next round of drilling on the Company’s operated Cheal and Sidewinder Exploration and Development acreage.

“We’re still in the primary phase of production in Cheal,“ said Pierce, “despite producing a net daily average of 1,689 barrels of oil equivalent—73 per cent oil—this last quarter. We’re still finding new pockets of oil and gas, and there are many different aspects to implement, from optimizing recovery to infill drilling along known trends, and exploring through multiple producing formations. There are opportunities for oil there and potential upside.”

Alex Guidi

Founder and Chairman

Ryan MansomNational Practice Leader Australia / New Zealand

Specialist Insurance Brokers

www.ajg.com.au

+61 417 348 091

for the Oil and Gas Industry

www.ajg.com.au

[email protected]

“Founded in 1927, Arthur J. Gallagher is a global leader in insurance broking and risk management services, offering specialist expertise in the oil and gas sector both for Operators and Contractors alike.”

Arthur J. Gallagher (AJG) is one of the world’s largest insurance brokers.  Founded in the United States in 1927, it now employs over 23,000 people and is listed on the New York Stock Exchange.  Globally, our insurance broking operation has a presence in over 140 countries.  

 In Australia and New Zealand, AJG has specialists in the Oil and Gas industry based in Perth providing a high level of expertise in this speciality field. Clients benefit from our ability to draw on international centres of excellence in London, Tokyo, Houston, Calgary and Singapore to access markets and enable us to meet the full range of client needs.  Through our global reach and technical specialisation, our specialist team have access to bespoke and exclusive insurance solutions to assist clients.

Website: www.ajg.com.au

SUPPLIER PROFILEARTHUR J. GALLAGHER (AJG)

The original Sidewinder gas and

oil discovery well drilled in the

Taranaki Basin, targeting the

Miocene-aged, Mt. Messenger

formation. The well is located

adjacent to the 60-million barrel

Ngatoro/ Kaimiro oil field.

E N E R G Y

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TAG OIL

According to Pierce, a particularly prospective project is Cardiff—a deeper gas exploitation with potential to be a very large deposit. “It will likely take some time to approach while we’re being conservative with cash flow, but we could possibly consider bringing in a partner if the conditions were right,” he said.

Along with strong assets, TAG owns and operates a modern production infrastructure and associated pipeline network, linking the gas it produces to the main high capacity pipeline, ensuring direct access to thriving markets in the Taranaki region.

In what other ways can TAG Oil grow? “We have nice footprint in New Zealand, but it’s a relatively small place and we’d like to expand,” said Pierce. And in a market plagued by high production costs coupled with low commodity prices, TAG Oil is well positioned to take advantage.

If the deal is right Unlike most junior oil and gas companies at the moment, TAG’s model for growth isn’t all through development, but rather through acquisitions as well.

Max Murray,

New Zealand Country

Manager

Toby Pierce, Chief

Executive Officer &

Director

“The benefit of growing through acquisitions is a larger and more diverse portfolio. It also provides more access to financing, giving us a wider range of deals to look at.” – CEO Toby Pierce

Working in partnership with our customers providing safe, efficient and cost effective crane and transport solutions

www.ianroebuckcranehire.co.nz Office: (06) 758 7259 Fax: (06) 758 1827105 Corbett Road, R.D. 3, Bell Block, New Plymouth 4312

Ian Roebuck Crane Hire Limited are proud to be associated with Tag Oil and Webster Drilling,

supplying their crane & trucking requirements for the Drilling Programme throughout New Zealand.

24 HOURS7 DAYS 0800 117 259

Tasman Australia27 Jackson StreetBassendean WA 6054Ph: +61 8 9379 [email protected]

Tasman United Arab EmiratesPO Box 262559Jebel Ali Free Zone, DubaiPh: +971 4 881 [email protected]

Tasman New Zealand13 De Havilland Drive WestBell Block, New Plymouth 4312Ph: +64 6 755 [email protected]

YOUR PARTNER FOR THE FUTUREFor over 35 years, the Tasman group have been a leading provider of equipment and services to the offshore, onshore and geothermal drilling markets.

www.tasmanoiltools.com

TAG OIL E N E R G Y

www.tago i l .com 1 1

According to Pierce, at today’s oil price levels it can be a more sensible business decision to buy companies or substantial shares in companies, which can be cheaper than developing a new project.

“The way we look at it is with a larger production base, you’ll be self-sustaining cash flow-wise. You reduce your overall G&A; the team employs more individuals, and if you have a larger production base, you can carry a larger team. It gives you benefits and expertise.”

Pierce added, “The other benefit of growing through acquisitions is building a larger and more diverse

portfolio. It also provides more access to financing, giving us a wider range of deals to look at.”

TAG maintains a balanced approach to its portfolio of oil and gas assets, with conventional production as its core focus. However, the company does consider opportunities wherever they may lie. “If the upside makes sense for us, it’s something we’ll consider,” said Pierce.

According to Pierce, the company’s competitive edge is in its clean balance sheet. “We have no debt, solid cash, and are producing assets with a skilled workforce.

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TAG OIL

We’re active, we are aggressive, and we’re looking at a number of things at the moment.”

Right people in place with a system that works Looking behind the scenes, one key to TAG’s success has been its workforce.

“We seek the very best skillsets when recruiting new employees. We want people who can work together

in harmony,” said Pierce, “and who are self-starters. We’re a relatively flat organization, so we need a highly competent, seasoned team who can keep us nimble. We’re also a diverse, international group.”

Another major component to TAG Oil is safety. With the right team in place, the company is committed to providing the safest working conditions along with the highest standard of training.

TAG Oil tanks at its Sidewinder production facility in the Taranaki Basin

E N E R G Y

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TAG OIL

“New Zealand has good programs in place for safety but we take it a step further with our safety culture,” said Pierce. “We’re very good on that end and we’re always working to improve. It’s our number one priority.”

Technology also plays a critical role in efficiency and safety. “We’re always looking for new ways to improve both safety and efficiency, and we’re quick to adopt proven technologies.”

One component of having the right people in place is meshing with the culture and community of TAG’s host country of New Zealand. The oil and gas producer strives to play an active but respectful role. “We’re a guest in New Zealand and it’s very important to us that we respect that and give back to our community,” said Pierce.

The company’s grassroots approach to community relations involve sponsoring activities that support safer and healthier communities, enhance the productivity in natural resources, and promote local education opportunities.

“We sponsor students to get actively engaged in science through field trips, educational programs and a scholarship. We also sponsor outdoor activities including swim meets and lifesaving, an annual kids’ athletic competition, a golf club, and the local rugby team,” said Pierce. “It’s important to us to be part of the community, and these are things we really care about.”

The right pieces are in place, and TAG Oil thinks it’s their time to shine.

Company Information

I N D U S T RY

Oil & Gas

H E A D Q U A RT E R S

885 West Georgia Street

Suite 2040

Vancouver

British Columbia

Canada, V6C 3E8

F O U N D E D

2002

E M P L O Y E E S

29

R E V E N U E

$53.7 million

885 West Georgia Street Suite 2040, Vancouver,

British Columbia, Canada

T: 1-604-682-6496 www.tagoil.com