VANCOUVER, Sept. 26, 2011 /CNW/ - Canadian-based TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF), is pleased to report that drilling operations have now resumed at the
Company's 100%-owned Cheal oil and gas field, with the spudding of the
Cheal-C2 well. TAG anticipates drilling five new wells at Cheal before
moving the drill rig to the Sidewinder oil and gas field, both oil and
gas fields are located in the onshore Taranaki Basin, New Zealand.
This next phase of development drilling will continue to target the
multi-zone Miocene prospects identified on 3D seismic within the Mt.
Messenger (~1800m) and Urenui (~1400m) Formations. It is anticipated
that commercialization of any successful new well arising from this
drilling campaign can occur rapidly through TAG's 100%-owned production
In addition to the drilling activity, TAG Oil will also initiate a water
flood program at the Cheal "A" pool. This secondary recovery strategy
is both good oilfield practice and can cost-effectively increase
ultimate reserve recoveries, as well as increasing the net present
value of the pool.
"Given the strong results of TAG's previous drilling program, including
six successful exploration wells drilled in succession over a six-month
time span, I'm confident this next phase of drilling will continue to
yield good results," commented Garth Johnson, TAG CEO. "Now that Apache
Corporation has agreed to conduct a multi-phased exploration, appraisal
and potential development program within TAG's East Coast Basin
exploration permits, we can utilize TAG's strong working capital
position and growing cash flow to accelerate exploration and
development of our high-impact Taranaki acreage."
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 2,600 sections of land in the onshore Taranaki and
East Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG has partnered with Apache Corporation to
pursue the significant unconventional resource potential estimated in
the fractured shale source-rock formations. 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 Oil. All estimates and
statements that describe the Company's objectives, goals, or future
plans, including the drilling, completion and flow testing plans
related to the Company's ten well program at Cheal and Sidewinder
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.
SOURCE TAG Oil Ltd.
For further information:
Dan Brown or Garth Johnson, TAG Oil Ltd. 1-604-682-6496