TAG Oil Ltd. is cutting its forward guidance and planned capital expenditures for the remainder of fiscal 2016 in response to the low commodity price environment, and due to a slower than expected ramp up of its workover program in the Taranaki Basin of New Zealand. The company is reducing its 2016 average production guidance down from 1,900 BOE/d to 1,400 BOE/d and expects to exit its fiscal 2016 year-end at approximately 1,400 BOE/d.

The company is reducing its 2016 forecast capital expenditures down from $23 million to approximately $13 million with $6 million already spent. Full year 2016 operating cash flow is expected to be approximately $13 million versus the $22 million forecast at the beginning of the year.