New Zealand-focused oil and gas producer TAG Oil (TSE:TAO) (OTCQX:TAOIF) has appointed its chairman and founder, Alex Guidi, as the company's interim CEO, after announcing the resignation of its former CEO last month.
Guidi, a significant shareholder of TAG, began his career in the oil industry as a drilling roughneck. An early adopter of the horizontal drilling technology for mature oil fields in southeast Saskatchewan, he played a key role in transforming the Williston Basin-focused Walking Stick Oil and Gas into a producer that was later acquired by Bonavista Petroleum.
His oil and gas investments in New Zealand date back to 1993, when he co-founded Indo-Pacific Energy Corp and Trans-Orient Petroleum, paving the way for more than $300 million to be invested in the country's petroleum sector.
Guidi is also the founder and CEO of the industry holding company, International Resource Management Corp, which has expanded rapidly since its inception in 1989, to include oil and gas interests in Canada, Argentina, Peru, China, Australia, New Zealand and Papua New Guinea, among many other countries.
TAG, which has assembled a New Zealand-focused land package totaling 2.8 million acres over three basins, is now in the process of bringing additional production onstream at its Cheal-E field in the Taranaki Basin. It posted average daily production of 1,991 barrels of oil equivalent in its fiscal third quarter ending December 31, 2014, up 30 percent from the year earlier period.
The company has said that growing production from its core Taranaki Basin oilfield area will continue to be a priority, focused specifically on shallow Miocene drilling, which it says will help fuel its reserve-based growth in the zone. It is also expecting to grow from success on drilling its shallow and deep formation prospects along trend from existing discoveries in the Taranaki.
TAG was named one of the top picks for 2015 earlier this year by M Partners, which said the oil and gas producer is well positioned to ride out the current storm given its solid financial footing.
"As an established oil producer and reserve-based, high-impact exploration company, TAG is poised for future growth internationally," said Guidi.
"The company enjoys the benefits of a diverse suite of attractive drill-ready opportunities situated in the prolific Taranaki-region discovery trend, underpinned by high netback production and core oil field development, which has been substantially de-risked over the past four years."
"My mandate as interim CEO is to capitalize on TAG's strong position, with a view to drive shareholder value, while at the same time, ensure that the capital markets better understand TAG's deep value relative to its peer group companies."
Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of TAG. Such statements can be generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "guidance", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All estimates and statements that describe the Company's objectives, goals, forecasts, guidance, production rates, test rates, optimization, timing of operations, increased pace of drilling, statements regarding prospects being drill ready and/or future plans with respect to the drilling and field optimization work in the Taranaki, East Coast, and Canterbury Basins are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this release, and there is no representation by TAG Oil that the actual results realized in the future would be the same in whole or in part as those presented herein.
Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG's most recently filed reports in Canada under NI 51-101, which can be found under TAG's SEDAR profile at sedar.com. TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors change.