VANCOUVER, Dec. 14 /CNW/ - Canadian listed, New Zealand oil and gas
producer TAG Oil Ltd. (TSX-V: TAO), announced today that the Company
has completed the acquisition of a 20% interest in offshore exploration
Permit PEP 52181, which covers a 42,379-acre area in the main Taranaki
oil and gas discovery fairway.
PEP 52181, operated by a subsidiary of Australian-based Roc Oil Limited (http://www.rocoil.com.au/), is located just 8 km from shore and is in close proximity to existing
infrastructure, making commercialization in the event of discovery
efficient and cost effective.
The Permit, which contains the Kaheru Prospect and numerous other leads,
has extensive 2-D and 3-D seismic coverage, and has been identified to
have high-impact exploration potential with a good chance for success.
Kaheru is a Miocene-aged prospect on the same successful thrust belt
play fairway as many significant Taranaki oil and gas fields,
including: Rimu, Kauri, Manutahi immediately north, as well as the
Tariki, Ahuroa, Waihapa and Ngaere ("TAWN") fields further north.
Immediately to the west, the large Kupe Gas-Condensate field is now
also in full production.
Please see http://tagoil.com/new-zealand-operations.asp for further information on TAG's Taranaki Basin oil and gas fields.
TAG Oil CEO Garth Johnson commented, "This new acquisition is an
excellent addition to our Taranaki Basin prospect portfolio. The Kaheru
Prospect brings TAG a significant amount of resource potential, and an
opportunity to enter a new permit with a proven international offshore
operator. We look forward to working with Roc Oil Limited and the other
joint venture partners with a view to advancing Kaheru to the drilling
TAG is also pleased to report that production testing of the Cheal-BH-1 horizontal well continues,
with the well now flowing oil, gas and fracture fluids. The Company
anticipates that once all fracture fluids and excess fracture sand have
been recovered, a reliable stabilized flow rate will be achieved. "TAG
is very encouraged by the testing of the horizontal well thus far, as
well as all of the results from workover operations on existing Cheal
wells. This has resulted in TAG recently achieving the highest daily
oil and gas production volume in Cheal's history." continued Mr.
You can find more information on TAG's oil and gas production online at http://tagoil.com/production.asp.
The Company will recommence drilling at Cheal and Sidewinder in February
2011. The program includes development and step-out drilling, as well
as exploration drilling targeting high-impact prospects defined on 3-D
seismic, all within the Company's 100%-controlled Taranaki Basin
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-listed company (TSX-V: TAO) with operations
in New Zealand. With 100% control over all its core assets, including
production infrastructure, TAG is anticipating production growth
through development of multiple oil and gas discoveries in the Taranaki
Basin and through high-impact exploration drilling on 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 that are widespread
across the Company's acreage. The geological characteristics of these
oil-rich, naturally fractured, thermally mature formations compare
favorably to fractured shale formations such as the Bakken Shale in the
Williston Basin and Liassic Shale in the Paris Basin.
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 Kaheru Prospect and 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: For further information:
Dan Brown or Garth Johnson, TAG Oil Ltd. 1-604-682-6496