VANCOUVER, Feb. 1 /CNW/ - Canadian listed, New Zealand oil and gas
producer TAG Oil Ltd. (TSX-V: TAO), announced that the Sidewinder-2
well is scheduled to begin drilling operations on February 7, 2011.
This is the first of several appraisal and exploration wells to be
drilled in the 7910-acre (12 section), 100% TAG-controlled Petroleum
Exploration Permit 38748 ("PEP 38748") in New Zealand's Taranaki Basin.
Following the success of the gas-rich Sidewinder-1 discovery, the
Sidewinder-2 and 3 wells will be drilled to a depth of approximately
2400 meters, targeting the same Mt. Messenger Formation play level as
Sidewinder-1. However, these wells will be drilled in a slightly
downdip location to intersect an interpreted "oil leg" associated with
this proven accumulation.
TAG also announces its plans to conduct a multi-well, high-impact
exploration campaign in PEP 38748 targeting a number of Mt. Messenger
prospects similar to Sidewinder, that have been identified permit-wide
by 3D seismic.
Any successes arising from additional discoveries in PEP 38748 or
additional Sidewinder production wells will be immediately tied into
the Sidewinder Production Station. Currently under construction, TAG
forecasts completion of the new facility by mid-2011.
Production from the existing Sidewinder-1 well, forecast to produce at
rates of 8 to 10 million cubic feet of gas (1300 to 1600 barrels of oil
equivalent) per day, will be brought on stream upon completion of the
Sidewinder Production Station.
Please see http://tagoil.com/20101103-TAG-Oil-Announces-Strong-Results-at-Sidewinder-1-Flow-T.asp for more information on the Sidewinder-1 discovery.
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-listed company (TSX-V: TAO) with operations
in New Zealand. With 100% control of its core assets, including oil and
gas production infrastructure, TAG is anticipating production growth
through development of multiple oil and gas discoveries in the Taranaki
Basin. TAG is also targeting high-impact drilling opportunities on
numerous exploration prospects identified over 3,500 sections of land
In the East Coast Basin, TAG is pursuing the major unconventional
resource potential that has been demonstrated in the Waipawa Black
Shale and Whangai Shale source-rock formations. These oil-rich,
naturally fractured formations compare favorably to fractured shale
formations such as the Bakken Shale in the 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, development and daily production rates of TAG Oil's Cheal
oil field and Sidewinder discovery 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