VANCOUVER, May 6 /CNW/ - 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
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
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.
For further information:
Dan Brown or Garth Johnson, TAG Oil Ltd. 1-604-682-6496