Canada-listed TAG Oil has secured an extension of its evaluation period at the Badr Oil Field in Egypt’s Western Desert to October 2028, buying additional time to drill two further wells and assess the commercial potential of the Abu Roash ‘F’ reservoir as the company works to build a sustainable production base in North Africa.
TAG Oil’s involvement at Badr Oil Field is structured as a petroleum services agreement focused on developing a specific subset of wells within the concession, which is owned and operated by Badr El Din Petroleum Company — the joint venture between the Egyptian government and Cheiron. Combined production from TAG Oil’s BED4-T100 horizontal well and BED 1-7 vertical well averaged approximately 80 barrels per day during the fourth quarter of 2025, with the full-year average standing at approximately 84 barrels per day and cumulative gross production from both wells surpassing 83,000 barrels.
The company took steps to strengthen its financial position during the year, selling its royalty interests in New Zealand and Australia for approximately $3.2 million. Oil sales for the year ended December 31, 2025 came in at approximately $1.39 million, up from $0.86 million in 2024, while the net loss narrowed to $4.8 million from $6.3 million in the prior year. Cash at year-end stood at $2.5 million with working capital of approximately $1.9 million.
In February 2026, TAG Oil completed a brokered financing round, raising gross proceeds of $11.5 million — a move that significantly improved its liquidity and provided the capital needed to advance appraisal and development activities at both the BED1 and Southeast Ras Qattara concessions, including planned drilling and fracture evaluation programmes. The company is also actively assessing joint venture opportunities and strategic acquisitions to grow its unconventional resource portfolio across Egypt and the broader North Africa region.
Source: Egypt Oil & Gas