VANCOUVER, Nov. 2, 2011 /CNW/ - Oil and gas producer TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF), is pleased to report continued positive drilling results at the Cheal
field, with the completion of the first two wells of a ten-well
drilling campaign. Electric log analysis of these wells indicates
high-quality oil pay in the targeted Mt. Messenger and Urenui
Formations. A pumping unit is currently being mobilized to the field
for extended well testing. The Company is also pleased to announce the
spudding of the Cheal-B5 appraisal / development well which will target
the same reservoir horizons.
Cheal-C2, the first well in TAG's current ten-well Taranaki drilling
program, targeted the Mt. Messenger Formation and was drilled to a
depth of ~2,130 meters from the Cheal C drilling pad. This well
encountered "free oil" and the highest mudlog gas peak ever recorded at
Cheal from multiple sandstone intervals. Cheal-C2 was a "step-out"
from the Cheal-C1 oil discovery announced on June 6, 2011. For more
information on Cheal-C1 discovery please see our June 6, 2011 Press Release (http://www.tagoil.com/20110606-Cheal-C1-extends-Mt-Messenger-Area-Deeper-Wildcat.asp).
In addition, TAG has recently completed drilling of the Cheal-A8 well,
the second well in the ten-well drilling campaign, which targeted the
Urenui Formation from the Cheal A drilling pad. The well was drilled
and cased to a depth of ~1,585 meters with "free oil" encountered from
multiple sandstone intervals.
Garth Johnson, TAG Oil CEO, commented, "We are very pleased at the
results to date in our current Taranaki drilling program with both
wells exhibiting what appears to be excellent oil pay in several
intervals. We are also undergoing a field optimization project
including water flooding and workover / recompletion of existing older
wells to enhance the field productivity."
The Cheal oil and gas field, 100%-controlled by TAG Oil, is located in
Petroleum Mining Permit 38156 in the onshore Taranaki Basin, New
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 more than 2,600 sections of land in the onshore Taranaki and
East Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG has partnered with Apache Corporation to
pursue the significant unconventional resource potential estimated in
the fractured shale source-rock formations. These oil-rich and
naturally fractured formations have many similarities to North
America's Bakken Shale source-rock formation in the successful
"BOEs" 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. All estimates and
statements that describe Cheal waterflood and Cheal-C1, Cheal-C2 and
Cheal-A8 as well as the Company's objectives, goals, or future plans,
including the drilling, completion and flow testing plans related to
the Company's ten well program at Cheal and Sidewinder located in the
Taranaki Basin of New Zealand, are forward-looking statements under
applicable securities laws and necessarily involve risks and
uncertainties including, without limitation, risks associated with oil
and gas exploration, development, exploitation, production, marketing
and transportation, volatility of commodity prices, imprecision of
reserve estimates, environmental risks, competition from other
producers, and changes in the regulatory and taxation environment.
These forward-looking statements are based on certain factors and
assumptions. Consequently, the Company's 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.
Additional risk factors and uncertainties 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 Annual Information Form and its most recent reports in Canada
under National Instrument 51-101.
SOURCE TAG Oil Ltd.
For further information:
Dan Brown or Garth Johnson, TAG Oil Ltd. 1-604-682-6496