VANCOUVER, Nov. 28, 2011 /CNW/ - November 28, 2011 - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), reports that the Company has received consent from the Taranaki
Regional Council (TRC) and the Stratford District Council (SDC) to
drill 18 new wells within TAG's 100%-owned Cheal Oil and Gas Field in
The final decision granting consent in support of TAG's drilling
operations was handed down by the SDC-appointed independent
commissioner after an affected landowner requested a hearing. The
consent grant is subject to an appeal process that must be lodged
within 15 days of the consent. TAG plans to resume drilling operations
at Cheal on or about December 16, 2011 if an appeal is not filed.
Garth Johnson, CEO of TAG commented. "We are pleased to have received
the commissioner's decision consenting to TAG's drilling program.
Consent was granted after an independent review of all pertinent
information, and therefore I trust that common sense will prevail and
an appeal will not be filed. We look forward to drilling the Cheal-B6
well in the next few weeks and getting more than 40 concerned drilling
employees back to work."
TAG Oil is also pleased to report an agreement has been concluded, that
gives the Company exclusive rights to a state-of-art drilling unit.
Under the terms of the agreement with Petra Drilling, a 100%-owned
subsidiary of New Zealand-based Webster Drilling and Exploration, TAG
will provide secured financing for Petra to acquire and deliver to New
Zealand the fully automated VR500 rack and pinion, top-drive drill rig.
In exchange, TAG has secured a fixed price for future drilling, as well
as the first right of refusal on use of the rig until all financing has
"This is a great opportunity for TAG Oil and the New Zealand oil and gas
industry." Mr. Johnson further commented. "The VR500 rig is safer, more
efficient, highly cost-effective and most importantly, it is
environmentally friendly with a significantly smaller footprint on the
area where drilling operations take place."
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 1,300 sections of land in the onshore Taranaki and
East Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG is pursuing the major unconventional
resource potential estimated in the fractured shale source-rock
formations that are widespread over the Company's acreage. These
oil-rich and naturally fractured formations have many similarities to
North America's Bakken Shale source-rock formation in the successful
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. Such statements can
generally, but not always, identified by words such as "expects",
"plans", "anticipates", "intends", "estimates", "forecasts",
"schedules", "prepares", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
All estimates and statements that describe the Company's objectives,
goals, or future plans relating to the seismic, testing and/or drilling
programs in the Taranaki and East Coast Basins 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, including factors and assumptions regarding
the management's views on the oil and gas potential in the permit
areas, the success of any operations, and the costs necessary to
complete the operations. Actual results may vary materially from the
information provided in this release, and there is no representation by
TAG that the actual results realized in the future will be the same in
whole or in part as those presented herein.
Other factors that could cause actual results to differ from those
contained in the forward-looking statements related to upcoming
operations, production forecast modeling and other items, are also set
forth in, filings that TAG and its independent evaluator have made,
including TAG's most recently filed reports in Canada under National
Instrument 51-101, which can be found under TAG's SEDAR profile at www.sedar.com.
TAG undertakes no obligation, except as otherwise required by law, to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors change.
SOURCE TAG Oil Ltd.
For further information:
Dan Brown or Garth Johnson