VANCOUVER, April 5 /CNW/ - TAG Oil Ltd. (TSX-V: TAO) and (OTCQX: TAOIF) is pleased to report that the Sidewinder-3 exploration well is confirmed as a light oil and gas discovery, the
third discovery made in TAG Oil's 100%-controlled Petroleum Exploration
Permit 38748 in the onshore Taranaki Basin, North Island, New Zealand,
and the Company's fourth new oil and gas discovery in five months.
The Sidewinder-3 exploration well was drilled to a total depth of 2160
meters (7087 feet), targeting a large anomaly identified on 3-D
seismic, approximately 1.1 Km to the south of the recent Sidewinder-1
and Sidewinder-2 discoveries. Sidewinder-3 encountered 15.4 meters (50
feet) of net oil-and-gas-bearing sandstones in the primary Sidewinder
zone, including "free oil" observed over the shakers during the
"This is our third successful Sidewinder well, with each new well
helping us to more accurately calibrate our 3-D data set, and further
understand the geology in this lightly-explored acreage." Drew
Cadenhead, TAG Oil COO commented. "Of particular interest, the
Sidewinder-3 well has shown the Mt. Messenger Formation reservoir sands
extend significantly to the south of the original Sidewinder
discoveries, and hydrocarbons appear to have migrated into all
potentially producing sands encountered to date. The size and scope of
the discovery area is potentially much larger than originally
anticipated, and bodes well for both near term development and future
The three Sidewinder discovery wells are part of TAG Oil's ongoing
exploration drilling campaign that commenced in Petroleum Exploration
Permit 38748 in February 2011 following the Sidewinder-1 discovery.
Sidewinder-1 flow tested at stabilized rates of 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. Please view http://www.tagoil.com/20110314-Third-New-Light-Oil-Discovery.asp for more information on the Sidewinder discoveries.
Garth Johnson, TAG Oil CEO commented. "Once flow testing of all new
Sidewinder wells is complete, we can better assess the magnitude of
these discoveries. Given the encouraging results achieved to date we
are expanding the throughput capabilities of the Sidewinder Production
Station to accommodate more production than we initially anticipated.
Our immediate focus remains on building cash flow and reserves
associated with these discoveries."
TAG Oil will immediately proceed to drill the Sidewinder-4 exploration
well, which will also target the Mt. Messenger Formation sandstones
approximately 1 Km to the east of the Sidewinder-1 well.
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 3,500 sections of land onshore in the lightly explored Taranaki
and East Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG Oil has demonstrated and 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,
and Sidewinder-3 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