JRI #16: CEO Toby Pierce Explains Tag Oil’s (TAO.V) Asymmetrical Upside Potential

Time Stamps below.

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Led by highly-respected industry professionals with long track records of strong M&A value creation, Tag has taken control of brownfield acreage containing some 550m OIP. Their thesis is that by bringing to their ARF formation in Egypt the same technological advances that has rejuvenated North American basins, Tag can unlock and extract commercial amounts of oil. Third party estimates place their chance of commerciality at some 90%, however, the market seemingly has not yet given them full credit for their potential, trading still at just (roughly) 25% of their risked NPV. CEO Toby Pierce joins me to explain the rare opportunity Tag has been presented with and why 2023 has the potential to be a truly exciting year for his company.

 

Time Stamps

01:00: Toby’s Elevator Pitch

02:00: History of Tag Oil

03:45: Toby’s Work History

06:00: Abby Badwi and what he brings to Tag

09:10: The rest of Tag’s Team 11:20: Share Structure

18:00 Cash on Hand and 2023 Exploration Plans

25:00 Tag’s Thesis for Success

27:30 ARF’s Petrophysical similarities to Texas’ Eagle Ford

29:45: ARF’s Exploration and Production History

31:10 90% CoC Explanation

33:30: Tag’s Potential for Valuation Rerating

35:30: Tag’s 3 Exploration Phases

37:30: Cost to Drill and Future Funding

40:15: P90 Flowrate Scenario

41:30: Well Design

43:00: Net Cash to Company per Barrel

44:30: Cost-per-Barrel

46:10: Cash Net-per-Barrel

48:00: VAALCO and TransGlobe deal as a benchmark valuation

51:40: Near-Term Confirmation of Long-Term Value

52:00: Environmental Issues and Care

54:50: 12 Month Catalysts

56:40: Ideal Time for a Buyout

59:30: Final Thoughts for Toby

 

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