TAG Oil Ltd. (the "Company" or "TAG Oil") (TSX: TAO and OTCQX: TAOIF) confirms that ERC Equipoise Ltd. ("ERC"), a qualified reserves evaluator in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook, has completed its independent reserves assessment on the Company's interests within the Cheal (PMP 38156), Cheal East (PEP 54877) and Sidewinder (PMP 53803) permits, dated and effective March 31, 2017. ERC has assigned a pre-tax net present value of $82.12 million (FY2016: $45.92 million), using a 10% discount rate to the Company's net working interest proven plus probable ("2P") reserves.
ERC's 2P reserves estimates at March 31, 2017, were 4,143 Mboe (92% oil) compared to 3,619 Mboe (93% oil) 2P reserves reported by TAG Oil at March 31, 2016. The increase in the Company's reserves of approximately 14% is attributable to the following factors:
Toby Pierce, CEO commented, "I am very pleased with TAG Oil's reserve additions in fiscal 2017. Not only did we replace our production, but we also managed to increase reserves through our field activities without drilling a conventional production well. The Company is well placed to grow our asset base over the next year and beyond as we move on to the second of up to five exploration wells following the successful completion and tie-in of the Cheal-E8 conventional oil well. Despite the recent weaker Brent oil prices, TAG Oil continues to maintain a strong balance sheet, positive cash flow and an active work program over the remainder of fiscal 2018."
About TAG Oil
TAG Oil (http://www.tagoil.com/) is a development-stage international oil and gas producer with established high netback production, development and exploration assets, including production infrastructure in New Zealand and Australia. TAG Oil is poised for significant reserve and production growth with several oil and gas fields under development and high-impact exploration in proven oil and gas fairways. TAG Oil is debt-free and currently has 85,282,252 shares outstanding.
SOURCE: TAG Oil Ltd.
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