VANCOUVER, Sept. 8 /PRNewswire-FirstCall/ - New Zealand explorer and producer TAG Oil Ltd.
(TSX-V, trading symbol: "TAO") announced today that the Company is
beginning the next phase of its Taranaki program, including
exploratory and horizontal development drilling, and various
workover operations including multi-stage fracture treatments. This
program is within TAG's 100% controlled, 15,400-acre (24 Section)
Broadside exploration and Cheal oil discovery acreage in the
Taranaki Basin.
The prime objective of this program is to build TAG's oil and
gas revenue in Taranaki, where the Company has already established
high netback oil production from its 100%-owned and operated Cheal
Production Facility. The impact of this operation is anticipated to
materially increase reserves, as well as the 420 barrels of oil and
400 mcf gas currently produced per day.
Operations are moving forward on the basis of successful pilot
testing of downhole recovery technologies and recently completed
fracturing programs. The results of this three-well workover
program have shown to accelerate and increase reserve recovery, and
to lower overall operating costs.
In the Broadside Exploration Permit PEP 38748, TAG is scheduled
to spud the Sidewinder-1 exploration well on September 15, 2010. The well is scheduled to
reach a total measured depth of 1457m in approximately 10 drilling
days to test this Miocene-aged prospect.
Sidewinder is one of several exploration prospects identified on
permit-wide 3D seismic. TAG will have the option to immediately
drill one or more additional follow-on exploration prospects from
the same surface location, dependent on results. The Sidewinder-1
exploration well will target the Mt. Messenger Formation, the same
producing formation as the offsetting Ngatoro and Kaimiro oil and
gas fields.
Upon completion of this drilling operation, the rig will move to
the Cheal production permit PMP 38156-S to commence drilling the
Cheal-BH-1 horizontal well.
This development well, with a total measured depth of 2325m,
including a 600m horizontal section, will be drilled into the
proven producing area of the Cheal A block and target the
widespread turbidite fan deposits in the Mt. Messenger Formation
mapped over the Cheal permit area.
The Cheal-BH-1 well will be completed with a multi-stage
fracture treatment along the horizontal section, using completion
technology proven in North America
and globally, but not yet deployed in New
Zealand.
Simultaneously, a service rig will begin further optimization
work on two wells within the Cheal Mining Permit. Cheal B-3 will
receive a fracture stimulation treatment followed by installation
of additional recovery technology.
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-based company with international
operations in New Zealand. The
Company holds a drill-ready prospect inventory that covers more
than 3,500 sections of land in the Taranaki and East Coast basins,
including a 100% interest in the producing Cheal oil and gas
discoveries now under appraisal and development.
In the East Coast Basin, TAG is planning a drilling campaign to
further investigate the major unconventional resource potential
that has been demonstrated in the Waipawa and Whangai fractured
shale source-rock formations that are widespread across the
Company's acreage. The geological characteristics of these
formations compare favorably to oil-rich shale formations such as
the Bakken Shale in the Williston Basin and Liassic Shale in the
Paris Basin.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not
historical facts are forward-looking statements that involve
various risks and uncertainty affecting the business of TAG Oil.
Actual results may vary materially from the information provided in
this release. As a result, there is no representation by TAG Oil
that actual results realized in the future would be the same in
whole or in part as those presented herein. Actual results may
differ materially from the results predicted, and reported results
should not be considered as an indication of future performance.
Factors that could cause actual results to differ from those
contained in the forward-looking statements are set forth in, but
are not limited to, filings that the Company and its independent
evaluator have made, including the Company's most recent reports in
Canada under National Instrument
51-102.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE TAG Oil Ltd.
Copyright t. 8 PR Newswire