TAG OIL
ENERGY
According to Pierce , at today ’ s oil price levels it can be a more sensible business decision to buy companies or substantial shares in companies , which can be cheaper than developing a new project .
“ The way we look at it is with a larger production base , you ’ ll be self-sustaining cash flow-wise . You reduce your overall G & A ; the team employs more individuals , and if you have a larger production base , you can carry a larger team . It gives you benefits and expertise .”
Pierce added , “ The other benefit of growing through acquisitions is building a larger and more diverse portfolio . It also provides more access to financing , giving us a wider range of deals to look at .” TAG maintains a balanced approach to its portfolio of oil and gas assets , with conventional production as its core focus . However , the company does consider opportunities wherever they may lie . “ If the upside makes sense for us , it ’ s something we ’ ll consider ,” said Pierce .
According to Pierce , the company ’ s competitive edge is in its clean balance sheet . “ We have no debt , solid cash , and are producing assets with a skilled workforce .
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