TAG Oil Ltd. (TSXV: TAO, OTCQX: TAOIF, FSE: T0P) has delivered a robust operational and financial update for its fiscal year ending December 31, 2024, highlighting increased production from its Egyptian assets and enhanced liquidity following the sale of its New Zealand royalty interests.
TAG Oil’s primary production assets, the BED4-T100 horizontal well and the BED 1-7 vertical well at the Badr Oil Field in Egypt’s Western Desert, continued to perform steadily. In the fourth quarter of 2024, the T100 well averaged 102 barrels of oil per day, while BED 1-7 produced 85 barrels per day. The first quarter of 2025 saw combined average production rise to 130 barrels per day from both wells, bringing cumulative output from these assets to over 40,000 barrels to date.
To support stable, long-term production, both wells have been outfitted with sucker rod pumping systems. During the first quarter of 2025, the wells underwent temporary shut-ins for pressure build-up analysis. TAG Oil also completed construction upgrades at the well-site Early Production Facilities, enhancing the handling and treatment of Abu Roash “F” crude oil. These improvements ensure the crude meets delivery specifications and safety requirements for transportation to the Ras Gharib system, a new delivery point for the company’s Egyptian output.
TAG Oil’s financial position has notably improved over the past year. As of December 31, 2024, the company reported $4.78 million in cash and cash equivalents and $5.0 million in working capital, a significant increase from September 30, 2024, when it held $3.18 million in cash and $2.3 million in working capital. Notably, TAG Oil carries no debt, providing it with flexibility to pursue growth initiatives.
A key development in TAG Oil’s financial strategy was the sale of its New Zealand royalty interests. The transaction, which closed recently, added $2.2 million in cash to the company’s balance sheet. This infusion of capital will be directed toward TAG Oil’s 2025 capital program, including efforts to secure a joint venture partner to accelerate drilling at the BED-1 concession in Egypt.
The sale is part of TAG Oil’s broader effort to streamline its portfolio and unlock value for shareholders. Executive Chairman and CEO Abby Badwi described the transaction as an important step in strengthening the company’s balance sheet and providing funding for ongoing and future projects.
Looking ahead, TAG Oil is prioritizing the acceleration of its BED-1 drilling campaign and is actively seeking a joint venture partner to support these ambitions. The company is also making progress on a strategic asset acquisition in Egypt, although the process is taking longer than initially anticipated. Management remains confident that the acquisition will close, further expanding TAG Oil’s footprint in the region.
TAG Oil’s focus on operational efficiency, financial discipline, and portfolio optimization positions it to capitalize on opportunities in the Middle East and North Africa. As a Canadian-based international oil and gas exploration company, TAG Oil continues to leverage its expertise and resources to drive growth in key markets. With increased production, a strengthened balance sheet, and a clear strategy for future development, TAG Oil Ltd. is positioned to pursue its growth objectives in 2025 and beyond.
