Trans-Orient Petroleum Ltd. today announced it has filed its fiscal-year financial results for the year ended July 31, 2009, and notes significant highlights for the year, including preparations for its initial drilling campaign, progress of its business partnership in the works, and independent reserves reports.
“It was a busy year for Trans-Orient in New Zealand, preparing for our initial drilling campaign targeting both conventional and unconventional shale prospects. We are also very excited as we move closer to completion of our strategic business combination with TAG Oil Ltd. (TSX-V: TAO), anticipated to close in mid-December 2009,” Trans-Orient CEO Garth Johnson stated in the press release. “Independent reports by qualified reserves evaluators dated September 2007 and September 2008 have estimated Trans-Orient’s prospective resources at over 14 billion barrels of original oil in place, adding immense upside to TAG’s already proven producing reserve base in the Taranaki Basin.”
The estimates completed by qualified reserves evaluators Sproule International Ltd. and by AJM Petroleum Consultants are available on Trans-Orient’s Website http://www.transorient.com/reports.asp.
The company posted a net loss of $4.7 million for the fiscal year 2009, reflecting a $3.5 million loss on investment. At July 31, 2009, the company had cash and cash equivalents of $4.89 million, $4.93 million in working capital, and no debt.
Johnson said that upcoming developments are expected to generate significant revenue and will leverage the company’s growth.
“In addition to TAG’s proved producing assets, significant near-term production growth exists through further development drilling at Cheal, as well as follow-up high-impact, lower-risk exploration drilling within a proven commercial discovery fairway,” Johnson stated. “The combined companies will have more than $11 million in working capital, no debt, solid monthly production revenue and 100% control of all assets, creating a dynamic, high-growth international oil company.”