VANCOUVER, April 5 /PRNewswire/ - TAG Oil Ltd.
(TSX-V: TAO) and (OTCQX: TAOIF) is pleased to
report that the Sidewinder-3 exploration well is confirmed
as a light oil and gas discovery, the third discovery made in TAG
Oil's 100%-controlled Petroleum Exploration Permit 38748 in the
onshore Taranaki Basin, North Island, New
Zealand, and the Company's fourth new oil and gas discovery
in five months.
The Sidewinder-3 exploration well was drilled to a total depth
of 2160 meters (7087 feet), targeting a large anomaly identified on
3-D seismic, approximately 1.1 Km to the south of the recent
Sidewinder-1 and Sidewinder-2 discoveries. Sidewinder-3 encountered
15.4 meters (50 feet) of net oil-and-gas-bearing sandstones in the
primary Sidewinder zone, including "free oil" observed over the
shakers during the drilling operation.
"This is our third successful Sidewinder well, with each new
well helping us to more accurately calibrate our 3-D data set, and
further understand the geology in this lightly-explored acreage."
Drew Cadenhead, TAG Oil COO
commented. "Of particular interest, the Sidewinder-3 well has shown
the Mt. Messenger Formation reservoir sands extend significantly to
the south of the original Sidewinder discoveries, and hydrocarbons
appear to have migrated into all potentially producing sands
encountered to date. The size and scope of the discovery area is
potentially much larger than originally anticipated, and bodes well
for both near term development and future exploration."
The three Sidewinder discovery wells are part of TAG Oil's
ongoing exploration drilling campaign that commenced in Petroleum
Exploration Permit 38748 in February
2011 following the Sidewinder-1 discovery. Sidewinder-1 flow
tested at stabilized rates of 8.5 million cubic feet of gas plus 44
barrels of oil per day for a total of 1461 barrels of oil
equivalent ("BOE") per day with no water. Please view
http://www.tagoil.com/20110314-Third-New-Light-Oil-Discovery.asp
for more information on the Sidewinder discoveries.
Garth Johnson, TAG Oil CEO
commented. "Once flow testing of all new Sidewinder wells is
complete, we can better assess the magnitude of these discoveries.
Given the encouraging results achieved to date we are expanding the
throughput capabilities of the Sidewinder Production Station to
accommodate more production than we initially anticipated. Our
immediate focus remains on building cash flow and reserves
associated with these discoveries."
TAG Oil will immediately proceed to drill the Sidewinder-4
exploration well, which will also target the Mt. Messenger
Formation sandstones approximately 1 Km to the east of the
Sidewinder-1 well.
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based
production and exploration company with operations focused
exclusively in New Zealand. With
100% control over all its core assets, including oil and gas
production infrastructure, TAG is anticipating substantial 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 New Zealand's 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.
"BOE"s may be misleading, particularly if used in isolation. A
BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy
equivalency conversion method primarily applicable at the burner
tip and does not represent a value equivalency at the wellhead.
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,
Sidewinder-2, and Sidewinder-3 light oil and gas discoveries 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.