VANCOUVER, July 4 /CNW/ - TAG Oil Ltd. (TSX-V: TAO/ OTCBB: TAGOF),
announces that the drilling of the Cheal A6 well reached a total depth of
1930 meters on June 26th, 2008. The well intercepted an oil bearing MM3
Formation as planned at approximately 1818 meters measured depth, but the net
sand interval was interpreted as thinner than prognosed and would be
uneconomic to complete.
The Cheal Joint Venture (Austral Pacific Energy Ltd. 69.5% and TAG Oil
Ltd. 30.5%) agreed to plug and abandon the MM3 zone in this well bore, set a
whipstock plug at 1359 meters and kick off a side track well to a targeted
location approximately 150 meters to the south of the original A6 penetration.
This location was interpreted from the Brecon 3-D seismic data set to have
thicker net sands, although slightly closer to the regional oil/water contact.
Cheal A6ST was drilled to a total depth of 1936 meters on July 2nd, 2008 and
intercepted the targeted MM3 sands as prognosed, well above the regional
oil/water contact. After evaluation of all subsurface data the Joint Venture
has agreed to plug and abandon the A6ST well as a sub-commercial hydrocarbon
discovery. A new whipstock plug will be set in the wellbore and the rig will
now commence drilling the Cheal A7 well from the same surface location. The
Cheal A6 and A6ST wells were targeting a separate lobe of sand from the main
Cheal "A" Pool while Cheal A7 is a step-out well targeting an extension of the
same pool containing the successful Cheal A3 and A4 wells.
Garth Johnson, TAG Oil Chief Executive Officer said, "Although we are
encouraged that we encountered oil bearing sands in Cheal A6 and A6ST, we were
disappointed that net pay thicknesses in this separate lobe of sand were
materially thinner than the "A" Pool and that completion operations were not
justified. We look forward to better results at Cheal A7 where we are
targeting the same Mt. Messenger sand body as the A3 and A4 wells."
About TAG Oil
TAG Oil Ltd. is a new oil and gas producer in the Taranaki Basin,
New Zealand. TAG is well funded, debt free and is poised to grow through
production, development and exploration drilling on the Company's high-graded
Taranaki exploration acreage.
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. Actual results may vary materially from the
information provided in this release. As a result there is no representation
by TAG Oil that the actual results realized in the future will be the same in
whole or in part as those presented herein. Actual results may differ
materially from the results predicted, and reported results should not be
considered as an indication of future performance. 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 51-102 and in the United States
under Forms 20-F and 6K.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Garth Johnson, CEO, (604) 609-3350, Website: