TAG Oil (TAO) AI Stock Analysis

• Market Cap: C$19.25M
• Dividend Yield: N/A
• Average Volume (3M): 147.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: 257.86%
• EPS Growth: 57.88%
• Country: CA
• Employees: 12
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 0.00
• Shares Outstanding: 226,461,700
• 10 Day Avg. Volume: 225,489
• 30 Day Avg. Volume: 147,364
• PEG Ratio: 0.14
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 29.90
• P/FCF Ratio: -1.08
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: C$0.08 ▼(-2.50% Downside)

TAG Oil's overall stock score is primarily impacted by its poor financial performance and bearish technical indicators. The company's financial health is concerning, with persistent losses and negative cash flows. Technical analysis further suggests a downtrend, with the stock trading below key moving averages. However, positive corporate events in Egypt provide some optimism for future growth, slightly offsetting the negative financial and technical outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing market demand and potential for future profitability as the company expands its operations.

Low Leverage

Low leverage provides financial stability and flexibility, allowing the company to navigate market fluctuations without significant debt burdens.

Advanced Technology Use

Utilizing advanced technologies can improve production efficiency and resource extraction, leading to better long-term operational performance.

Negative Factors

Negative Cash Flows

Persistent negative cash flows indicate challenges in sustaining operations and funding future growth without external financing.

Negative Margins

Negative margins reflect high costs relative to revenues, posing a risk to achieving profitability and requiring cost management improvements.

Persistent Losses

Ongoing losses undermine financial health and can limit the company's ability to invest in growth opportunities or weather economic downturns.

TAG Oil Business Overview & Revenue Model

Company Description

TAG Oil Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas in Canada, the Middle East, and North Africa. The company was formerly known as Durum Cons. Energy Corp. and changed its name to TAG Oil Ltd. in June 2002. The company was incorporated in 1990 and is headquartered in Vancouver, Canada.

How the Company Makes Money

TAG Oil generates revenue primarily through the extraction and sale of crude oil and natural gas. The company sells its production to domestic and international markets, capitalizing on fluctuations in oil and gas prices. Key revenue streams include direct sales of oil and gas, as well as any potential royalty payments from production agreements. Additionally, TAG Oil may engage in strategic partnerships with other companies in the energy sector to optimize resource extraction and explore new opportunities, which can further enhance its revenue through collaborative projects or joint ventures.

TAG Oil Financial Statement Overview

Summary

TAG Oil faces significant financial difficulties, characterized by persistent losses and negative cash flows. Despite revenue growth, profitability remains elusive with negative margins and cash flow issues. The balance sheet is stable with low leverage, but negative return on equity and cash flow challenges are concerning.

Income Statement

TAG Oil's income statement reveals significant challenges, with negative margins across the board. The gross profit margin is deeply negative, indicating costs far exceed revenues. The net profit margin is also negative, reflecting substantial losses. Despite a revenue growth rate of 59.7% in the latest year, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet shows a low debt-to-equity ratio, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is relatively healthy, but the overall financial health is undermined by persistent losses.

Cash Flow

Cash flow analysis highlights severe issues, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating cash flow challenges. The free cash flow to net income ratio is positive, but this is due to substantial net losses rather than strong cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.57M	864.00K	781.33K	0.00	0.00	0.00
Gross Profit	-1.33M	-1.01M	-1.00M	-164.00K	-122.00K	-235.00K
EBITDA	-7.82M	-8.28M	-9.01M	-7.39M	-3.85M	-3.45M
Net Income	-5.58M	-6.33M	-8.20M	-3.00M	-4.46M	-14.92M
Balance Sheet
Total Assets	47.99M	55.09M	53.91M	41.06M	18.20M	20.50M
Cash, Cash Equivalents and Short-Term Investments	5.34M	7.40M	16.44M	20.66M	15.52M	17.14M
Total Debt	1.24M	1.49M	208.00K	459.00K	573.00K	98.00K
Total Liabilities	2.71M	5.74M	7.43M	2.04M	979.00K	505.00K
Stockholders Equity	45.28M	49.35M	46.48M	39.01M	17.23M	20.00M
Cash Flow
Free Cash Flow	-17.81M	-23.88M	-22.88M	-11.94M	-4.11M	-4.10M
Operating Cash Flow	-8.28M	-5.98M	-3.90M	-5.46M	-4.08M	-3.92M
Investing Cash Flow	-4.28M	-17.14M	-17.28M	-4.42M	1.33M	3.68M
Financing Cash Flow	5.47M	5.54M	17.00M	23.57M	-55.00K	-24.72M

TAG Oil Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TAO, the sentiment is Negative. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 35.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TAO.

TAG Oil Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOU	54 Neutral	C$25.43M	-1.18	-44.92%	―	3.01%	84.56%
TAO	45 Neutral	C$19.25M	-4.36	-10.11%	―	257.86%	57.88%
DME	42 Neutral	C$23.67M	-7.76	-6.13%	―	-82.16%	70.07%
SNV	41 Neutral	C$12.00M	-6.41	―	―	―	―
OYL	39 Underperform	C$42.32M	-0.52	-188.43%	―	―	-1886.78%

TAG Oil Corporate Events

TAG Oil Announces AGM Results and Strategic Decisions

TAG Oil Ltd. announced the results of its 2025 annual general meeting, where shareholders voted to fix the number of directors at five and elected all proposed nominees. Deloitte LLP was appointed as the auditor for the upcoming year, and the company’s incentive stock option plan was approved, allowing the issuance of up to 10% of the company’s outstanding common shares. These decisions are expected to support TAG Oil’s strategic operations and enhance its governance framework, potentially impacting its market positioning and stakeholder interests.

TAG Oil Reports Q3 2025 Financials and Announces Leadership Change

TAG Oil Ltd. reported its financial results for the third quarter of 2025, highlighting a decrease in cash and working capital compared to the previous quarter, with no debt. The company is actively seeking an industry partner to enhance drilling activities at the Badr Oil Field and is progressing with agreements for the development of the unconventional ARF reservoir in Egypt. Additionally, TAG Oil announced the appointment of Doug Urch as Vice President and Chief Financial Officer, succeeding Barry MacNeil, to further strengthen its financial leadership.

TAG Oil Partners with ICP Securities for Enhanced Market Making Services

TAG Oil Ltd. has engaged ICP Securities Inc. to provide automated market making services using its proprietary algorithm, ICP Premium™, in compliance with TSX Venture Exchange policies. This agreement, starting November 24, 2025, aims to enhance liquidity and quote health for TAG Oil’s securities, potentially impacting its market presence and stakeholder interests positively.

TAG Oil Reveals Promising Volumetric Assessment in Egypt’s Abu Roash ‘F’ Formation

TAG Oil has announced the results of an independent volumetric assessment of the Abu Roash ‘F’ formation in the Southeast Ras Qattara concession in Egypt. The assessment estimates 3.2 billion barrels of oil-initially-in-place, highlighting the potential for unconventional development. TAG Oil plans to use additional seismic and geological data to validate these estimates and assess the production potential, which could significantly impact the company’s operations and industry positioning.

TAG Oil Extends BED-1 Evaluation and Strengthens Egyptian Operations

TAG Oil has extended its evaluation period for the BED-1 concession in collaboration with Badr Petroleum Company, committing to drill two additional wells by October 2028. This extension, along with the recent Southeast Ras Qattara acquisition, enhances TAG Oil’s strategic position in Egypt, supporting its expansion and operational growth in the region.

TAG Oil Secures Agreement for Abu Roash ‘F’ Reservoir Development in Egypt

TAG Oil has secured a petroleum services agreement with the Egyptian National Petroleum for Exploration and Development Company for the development of the unconventional Abu Roash ‘F’ reservoir in Egypt’s Western Desert. This agreement, following a competitive bidding process, allows TAG Oil to explore the reservoir’s potential using proven technologies, with the possibility of full-scale commercial development based on initial evaluation results. The deal marks a significant expansion of TAG Oil’s operations in Egypt, potentially enhancing its market position in the region.