VANCOUVER, June 23, 2011 /CNW/ - TAG Oil Ltd. (TSX-V: TAO) and (OTCQX: TAOIF) is pleased to report that a 4-Point Isochronal flow test was completed
over the main discovery zone in the Sidewinder-2 discovery well, which achieved stabilized flow rates of 8.8 million
cubic feet per day (~1467 BOE per day) with less than a 25% drawdown.
The results from Sidewinder-2 further strengthen the already robust
project economics, with anticipated full-time commercial production
commencing upon completion of the new Sidewinder production facilities
in a few months time. The Sidewinder-2 well is the fourth Sidewinder
well that has been flow tested, all of which have achieved excellent
flow rates, as summarized below:
Sidewinder Discovery Flow Test Results
Gas Flow Rate
(Million Cubic Feet
BOE Flow rate
(Barrels of Oil
Equivalent Per Day)
Net Oil and Gas
The Sidewinder-2 exploration well was drilled to a depth of 1,597 meters
(5,238 feet), intersecting the main Sidewinder discovery zone, as well
as four other separate oil-and-gas charged zones of interest totaling
47 meters (157 feet) of net pay. The interpreted pay zones are
primarily within the Miocene-aged Mt. Messenger Formation; however oil
shows were also encountered in the shallower Urenui Formation.
The Sidewinder oil and gas discoveries are located in TAG Oil's
Petroleum Exploration Permit 38748 (TAG 100%) in the Taranaki Basin,
New Zealand, with further exploration drilling in the lightly-explored
area scheduled to recommence in September 2011. TAG will continue to
target the widespread high-impact prospects identified in the Mt.
Cheal-C1 Oil Discovery Flow Testing to Begin
Following final completion of the Sidewinder-2 testing program, TAG Oil
will begin flow testing the Cheal-C1 oil discovery located in TAG's
Cheal oil and gas field, also in the Taranaki Basin. As reported in the
Company's June 6, 2011 Press Release, the Cheal-C1 exploration well
encountered 15 meters (49 feet) of net oil-and-gas bearing sandstones
within the Mt. Messenger Formation, which significantly extends the
known oil saturation area in the Cheal permit area. The Cheal-C1 well
also encountered oil and gas shows within a 73-meter-thick section of
sandstone within the deeper Moki Formation target. For further
information on TAG's Cheal-C1 discovery please visit http://www.tagoil.com/20110606-Cheal-C1-extends-Mt-Messenger-Area-Deeper-Wildcat.asp.
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 and naturally fractured 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. All estimates and
statements that describe the Company's objectives, goals, or future
plans, including the drilling plans and flow testing related to the
exploration, testing and development of TAG Oil's Sidewinder oil and
gas discovery wells and the Cheal-C1 oil and gas discovery well 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.
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