VANCOUVER,
March 14 /PRNewswire/ - Canadian
listed TAG Oil Ltd. (TSX-V: TAO) is very pleased to report that the
sidetracked Sidewinder-2 well is confirmed as a multi-zone,
light oil and gas discovery, encountering 47 meters (154 feet) of
high quality, oil-and-gas-bearing sandstones within the Mt.
Messenger Formation. This discovery is located in TAG Oil's
100%-controlled Petroleum Exploration Permit 38748, in the onshore
Taranaki Basin, North Island, New
Zealand, and is TAG's third new light oil and gas discovery
within the last five months.
The Sidewinder-2 sidetrack well was drilled to a
total depth of 1597 meters (5238 feet), and encountered 47 meters
(154 feet) of net oil-and-gas-bearing sandstones, including "free
oil" observed over the shakers during the drilling operation from
multiple potential pay zones. Furthermore, electric log data
indicates these zones have excellent reservoir qualities.
While this well has intersected and extended the
area of the main Sidewinder-1 discovery zone, Sidewinder-2 has also
encountered an additional five separate oil-and-gas-charged pay
zones, both above and below the primary target.
"We're very pleased to find such a significant
showing from this well," said Garth
Johnson, TAG Oil CEO. "This most recent discovery continues
to support our contention that TAG's onshore acreage in Taranaki is
located in a highly prospective oil-charged fairway. We've only
just begun our exploitation of this acreage and the possibility for
additional discoveries is exciting."
As a result of this latest oil and gas discovery,
TAG will immediately begin preparations for flow testing, which
will occur in the coming weeks. All additional production will be
brought on-line at TAG Oil's 100%-owned Sidewinder Production
Station, currently under construction and projected to be completed
in mid-2011.
Finally, TAG Oil is pleased to announce that
drilling of the Sidewinder-3 exploration well will be immediately
initiated from the same drilling pad, targeting a separate 3-D
seismic anomaly to the south of the existing Sidewinder
discoveries.
Please see
http://www.tagoil.com/20101103-TAG-Oil-Announces-Strong-Results-at-Sidewinder-1-Flow-T.asp
for more information on the Sidewinder-1 discovery.
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-listed production and
exploration company with operations focused in New Zealand. With 100% control over all its
core assets, including oil and gas production infrastructure, TAG
is anticipating substantial near term oil and gas production and
reserve growth through development of several light oil and gas
discoveries. TAG is also actively drilling high-impact exploration
prospects identified across 3,500 sections of land onshore in the
lightly explored Taranaki and East Coast Basins of North
Island.
In the East Coast Basin, TAG Oil has demonstrated
and is pursuing the significant unconventional resource potential
estimated in the fractured shale source-rock formations that are
widespread over the Company's acreage. These oil-rich, naturally
fractured and thermally mature source-rock formations have many
similarities to North America's
Bakken Shale source-rock formation
in the successful Williston 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.
These statements are based on certain factors and assumptions
including those related to the exploration and development of TAG
Oil's Sidewinder-1 and Sidewinder-2 sidetrack well, the Cheal oil
field and appraisal drilling related to the Sidewinder discovery in
the Taranaki Basin of New Zealand.
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.
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 51-101.
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.