VANCOUVER, May 6 /PRNewswire/ - TAG Oil Ltd. (TSX-V:
TAO) and (OTCQX: TAOIF) is very pleased to report
that the Sidewinder-4 exploration well, located in TAG Oil's
100%-controlled New Zealand
Petroleum Exploration Permit 38748, has been confirmed as a light
oil and gas discovery. Along with the three previous Sidewinder
discoveries, it is TAG Oil's fifth exploration success in the
Taranaki Basin in the past six months.
The results from the Sidewinder-4 well indicate that the
targeted oil-and-gas-charged Mt. Messenger Formation sandstones
extend significantly to the east of the Sidewinder-1 discovery
well. As noted previously in TAG Oil's April
5, 2011 Press Release
(http://www.tagoil.com/20110405-Sidewinder-3-Fourth-New-Light-Oil-Discovery.asp),
the Sidewinder-3 discovery well suggested that the Mt. Messenger
Formation sandstones extend significantly south of the original
Sidewinder-1 discovery as well.
The interpreted total hydrocarbon column at Sidewinder now
exceeds 60 meters (196 feet) in thickness, with no water column
evident in any of the Sidewinder wells. Together, the four
Sidewinder wells drilled to date indicate that the size and scope
of the Sidewinder discovery area is much larger than originally
anticipated. Furthermore, the entire permit remains lightly
explored and prospective for further oil and gas discoveries, with
numerous drill-ready prospects.
The Sidewinder-4 well, which was sidetracked to a location
down-dip of Sidewinder-3, targeted a fault-bounded 3-D anomaly,
which intercepted a gross 29 meter-thick (95 feet) sandstone
reservoir. The total depth of Sidewinder-4 is 1410 meters (4,626
feet), with 19 meters (62 feet) of net oil-and-gas-charged
sandstones, with electric logs indicating hydrocarbon charge to the
base of the sandstone. Free oil was observed over the shakers
during the drilling operation from the target zone. And consistent
with all of the Sidewinder wells drilled to date, the
oil-and-gas-charged sandstones encountered in Sidewinder-4 have
excellent porosity and permeability.
TAG is now preparing to commence the flow testing of the
Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells in a few weeks'
time. All wells will be placed onto production through the
Sidewinder Production Station, currently under construction with
anticipated completion by mid-year 2011.
For further information on the Sidewinder-1 discovery flow-test
result, please view TAG Oil's November 2,
2010 Press Release
(http://www.tagoil.com/20101103-TAG-Oil-Announces-Strong-Results-at-Sidewinder-1-Flow-T.asp)
announcing that Sidewinder-1 tested at 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.
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 2,712 sections
of land in the onshore Taranaki and East Coast Basins of
New Zealand's North Island.
In the East Coast Basin, TAG Oil 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, Sidewinder-3 and Sidewinder-4 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.