TAG’s joint venture partner in the Puka permit is MEO Australia Limited (30%).
The Puka permit covers an area of approximately 85 square km (21,000 acres) and is located to the east of TAG’s producing Cheal field. Three wells have been drilled since the Puka oil field was discovered in 2012, with the Puka-1 and Puka-2 wells producing 100 bbl/d from the Mt. Messenger formation before being shut in due to low oil prices and mechanical issues.
In addition to Miocene-aged Mt. Messenger drilling opportunities, the Puka permit also contains the Shannon prospect, a deeper Tikorangi Limestone target situated directly below the Puka oil pool. The production capability from the Tikorangi Limestone has been well proven at the adjacent Waihapa oil field, which has produced in excess of 23 MMbbl to date. The Douglas-1 well drilled in 2012 at the edge of the Shannon prospect encountered a 145m of reservoir interval and oil shows in a down-dip location, with more than 350m of up-dip potential estimated.
TAG has acquired operatorship and a 70% interest in the Puka permit in return for a cash payment of NZ$250,000 to Kea Petroleum Limited, a company currently in liquidation. The acquisition and transfer of operatorship has been approved by New Zealand Petroleum and Minerals.
TAG and its joint venture partner, MEO, will hold a meeting imminently to discuss the work program for the remainder of 2016 and go forward plans for the acreage. It is anticipated that TAG’s portion of the fiscal 2017 work program on the Puka permit will be approximately NZ$75,000 and focus on the collection of gravity data and seismic interpretation. The joint venture is also committed to drilling one well on the Puka permit by FQ4/18 at a location and depth to be determined.
Toby Pierce, CEO commented,“We are very pleased to have completed the opportunistic acquisition of the Puka permit at such competitive terms out of liquidation. With proven production and several exploration targets identified, we see this as a complimentary addition to our portfolio where the TAG team can apply its extensive technical and operations experience in the Taranaki Basin. We are continuing to look for further opportunities to take advantage of our strong balance sheet and we are looking forward to working with our new partner, MEO.”
About TAG Oil Ltd
TAG Oil Ltd (tagoil.com) is a development-stage Australasian focussed oil and gas production and exploration company with extensive operations and production infrastructure in the Taranaki Basin region of New Zealand. As one of New Zealand’s leading operators, TAG is positioned for reserve-based growth with high impact exploration upside in the lightly explored Taranaki discovery fairway. As a low cost, high netback oil and gas producer, TAG is debt-free and reinvests its cash flow into development opportunities and exploration drilling along trend with the Company’s existing production.
Certain information in this release may constitute “analogous information” as defined in NI 51-101, including, but not limited to, information relating to areas with similar geological characteristics to the lands held by TAG. Such information is derived from a variety of publicly available information from government sources, regulatory agencies, public databases or other industry participants (as at the date stated therein) that TAG believes are predominantly independent in nature. TAG believes this information is relevant as it helps to define the reservoir characteristics in which TAG may hold an interest. TAG is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and in accordance with the COGE Handbook. Such information is not an estimate of the reserves or resources attributable to lands held or to be held by TAG and there is no certainty that the reservoir data and economics information for the lands held by TAG will be similar to the information presented therein. The reader is cautioned that the data relied upon by TAG may be in error and/or may not be analogous to TAG’s land holdings.
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. Such statements can be generally, but not always, be identified by words such as “expects”,“plans”,“anticipates”,“intends”,“estimates”,“forecasts”,“guidance”,“schedules”,“prepares”,“potential” and similar expressions, or that events or conditions “will”,“would”,“may”,“could” or “should” occur. All estimates and statements with respect to operations 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 and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this release, and there is no representation by TAG Oil that the actual results realized in the future would be the same in whole or in part as those presented herein.
Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG’s most recently filed reports in Canada under NI 51-101, which can be found under TAG’s SEDAR profile at sedar.com. TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors change.