VANCOUVER, Feb. 15 /PRNewswire/ - Canadian listed,
New Zealand oil and gas producer
TAG Oil Ltd. (TSX-V: TAO), reports that the Company is now
commencing an aggressive drilling campaign targeting the shallow
formations at the 100%-controlled Cheal oil and gas field. The
Cheal discoveries are located in the lightly explored Petroleum
Mining Permit 38156 in the onshore Taranaki Basin, New Zealand.
Following on from TAG's initial multi-zone Cheal discoveries,
which are currently producing light oil and gas from the main
producing Mt. Messenger Formation (~1800m) as well as the Urenui
Formation (~1400m), Cheal-B4ST is the first of several
"step-out" wells targeting these proven, producing zones in the
Cheal discovery area. Cheal-B4ST will re-enter the suspended
Cheal-B4 well, which previously recorded strong oil shows.
Says TAG Oil CEO Garth Johnson:
"Numerous drill-ready prospects have been identified at Cheal,
providing us with opportunities for high-impact reserve and
production growth. We plan to fully exploit these shallow zones
with an objective to build our near term cash flow, as we prepare
to pursue the deeper condensate-rich gas formations and TAG's East
Coast Basin fractured oil shale prospects."
All additional production arising from TAG's Cheal drilling
campaign can be brought on production rapidly and cost effectively
at TAG Oil's 100%-owned production station located in the Cheal
development area.
To learn more about TAG's Cheal development area, please visit:
http://www.tagoil.com/greaterCheal.asp
Historical Perspective
The original Cheal-B4 well was drilled by the previous operator to
test a deeper target within the Moki Formation (2900m) in
December 2006, and was suspended at
that time. During drilling, strong oil shows were recorded within
the Mt. Messenger Formation (~1900m). However, TAG's technical
interpretation of the seismic and well data indicates that these
oil shows are associated with a culmination of an anomaly in the
Mt. Messenger Formation, approximately 250m from the original
Cheal-B4 well penetration.
Petroleum Mining Permit 38156
Petroleum Mining Permit 38156 is located in the main onshore
Taranaki Basin play fairway where prolific light oil and
condensate-rich gas fields have been discovered within numerous
play levels.
Though the 7500-acre (11 section) permit area is only lightly
explored, PMP 38156 contains oil and gas discoveries in multiple
zones: the shallower Cheal Mt. Messenger and Urenui Formation
discoveries and TAG Oil's deep, condensate-rich, Cardiff gas discoveries in the Kapuni
Formation (4000m).
The Cardiff gas/condensate
discovery is situated on trend and among several sizable Kapuni
Formation discoveries including the offsetting Shell/Todd-operated
landmark Kapuni gas/condensate field, New
Zealand's first major onshore discovery.
To learn more about TAG's Cardiff gas discovery, please visit:
http://www.tagoil.com/cardiff.asp
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-listed company (TSX-V: TAO) with
operations in New Zealand. With
100% control over all its core assets, including oil and gas
production infrastructure, TAG is anticipating production growth
through development of multiple oil and gas discoveries in the
Taranaki Basin. TAG is also targeting high-impact drilling
opportunities on numerous exploration prospects identified over
3,500 sections of land onshore.
In the East Coast Basin, TAG is pursuing the major
unconventional resource potential that has been demonstrated in the
Waipawa Black Shale and Whangai Shale source-rock formations. These
oil-rich, naturally fractured formations compare favorably to
fractured shale formations such as the Bakken Shale in the
Williston Basin.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein constitute forward-looking
statements. Word such as "may," "will," "should," "expect," "plan,"
"intend," "anticipate," "believe," "estimate," "predict,"
"potential" and similar expressions, and statements related to
matters that are not historical facts, are intended to identify
forward-looking statements and are based on management's reasonable
beliefs, intentions and expectations.
Such statements include those relating to the proposed shallow
drilling campaign including the Cheal-B4ST well, any additional
exploration proposed in the deeper zones of PMP 38156, potential
oil and gas discoveries that may be brought on stream at the Cheal
production station, and any potential production and reserve
growth. These statements are based on certain factors and
assumptions and involve known and unknown risks and uncertainties.
The principal material assumptions underlying the forward-looking
statements herein are that TAG Oil will be able to continue to
develop the Cheal Oil Field and achieve exploration and development
success in the Taranaki Basin and the East Coast Basin and that TAG
Oil will maintain its permits. Additional risks, uncertainties and
factors include, but are not limited to, risks associated with
operations, production estimates, loss of market, regulatory
matters, commodity price risk, environmental risks, industry
competition, uncertainties as to the availability and cost of
financing, risks in conducting operations in New Zealand, potential delays or changes in
plans with respect to exploration, development or capital
expenditures, as well as those risks and uncertainties disclosed
under the section entitled "Risk Factors" in TAG Oil's Annual
Information Form. Actual results may vary materially from the
information provided in this release and 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.
Except as required by applicable law, TAG Oil does not assume
any obligation to publicly update the forward-looking statements
herein.
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 . 15 PR Newswire