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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Near Term Catalysts Bode Well For Tag Oil 3 comments
    Mar 25, 2013 1:27 PM | about stocks: TAOIF

    Tag Oil and Gas (TAO.T) (OTCQX:TAOIF)is a Canadian based oil and gas explorer operating in New Zealand. From the company website:

    TAG Oil Ltd. is a rapidly growing, profitable oil and gas producer with high impact exploration activities in New Zealand. Not only do shareholders enjoy the benefits of a stable economic and political environment, New Zealand is a lightly explored oil and gas frontier with highly profitable oil and gas discoveries, a modern, under-utilized infrastructure, and one of the most favorable fiscal regimes for oil and gas production in the world.

    I have been following the company for a couple of years and have owned it off and on. The company has had a string of good exploration luck which it is nearly ready to monetize. The current production is 1929 BOE/day as of 2/15/13. The company is in the process of a big infrastructure build out in its gathering and processing infrastructure (est. completion 3/31/13) which will lead the company to bring on production that is being held behind pipe. The company management is saying that after completion and commissioning of the new processing equipment that production could nearly double from where it is today.

    The company continues to experience 100% success in its step out drilling and has a multi well program underway for this year. In addition the company has large prospect on the east coast of New Zealand that has many similarities with shale plays in the US and presents definite blue sky potential going forward in the multi-billion barrel range.

    In the near term we have a highly successful oil and gas producer that is debt free, profitable, growing, and set to double production in the next month or so. I think it is a good speculation at the current price of $4.40 per share. The company traded as high as $11.00 per share this time last year. I own shares and have been accumulating on recent weakness.

    Disclosure: I am long OTCQX:TAOIF.

    Stocks: TAOIF
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Comments (3)
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  • Daniel oaklandpark
    , contributor
    Comments (279) | Send Message
     
    Why is TAG selling off so hard??
    28 May 2013, 03:11 PM Reply Like
  • John Polomny
    , contributor
    Comments (584) | Send Message
     
    Author’s reply » It is selling off because many investors were under the impression that after the infrastructure upgrades were completed that the behind the pipe production would mean production of 5000 boepd. However this morning the company said that production for the wells they have brought online is around 2700 boepd. People were disappointed as the company gave the impression production would be higher. The company had a high valuation based on this impression. It looks like some people decided to move on when they did not hear what they wanted to hear. I bought more today as I think this company has some serious blue sky potential in the East Coast Basin. Also, lets not forget we just got a 50% increase in production with six more wells to tie in and more wells to be drilled this year. It was a classic case of over promising and under delivering in my view.
    28 May 2013, 04:56 PM Reply Like
  • Daniel oaklandpark
    , contributor
    Comments (279) | Send Message
     
    Thanks John, I was busy at work and noticed the stock was off by 30% and thought something major occurred. Thanks again for the update.
    28 May 2013, 07:13 PM Reply Like
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