PRZOOM - /newswire/ -
Vancouver, British Columbia, Canada, 2010/11/03 - TAG Oil Ltd. (TSX-V: TAO), announces that the Sidewinder-1 discovery well, located in TAG’s 100% controlled Permit 38748 in the Taranaki Basin, has been perforated and a 10-day sustained production test is now complete. TSE: TAO
Canadian-listed, New Zealand oil and gas producer TAG Oil Ltd. (TSX-V: TAO), announces that the Sidewinder-1 discovery well, located in TAG’s 100% controlled Permit 38748 in the Taranaki Basin, has been perforated and a 10-day sustained production test is now complete.
Sidewinder-1 was drilled to a total depth of 1601m and encountered 14 meters of net (22m gross) oil and gas bearing sandstones.
Stabilized flow 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 were achieved with a flowing tubing pressure of 940 psi. The 4- Point Isochronal test indicated a tubing restricted maximum gas flow rate of 13 million cubic feet per day (2167 BOE’s/day).
The Sidewinder-1 well initially produced pure natural gas, but as the 10-day test progressed, increasing amounts of crude oil have been recovered, with no water produced.
Garth Johnson, TAG Oil CEO commented, "This is one of the strongest flow rates recorded from the Mt. Messenger Formation in Taranaki. Our technical team has identified numerous "lookalike" prospects from 3-D seismic to drill within our 7910 acre exploration permit area, with many being reachable from the same Sidewinder surface location. We will now proceed with plans to commercialize this discovery and initiate full-time production as rapidly and cost-effectively as possible."
TAG also reports that the Cheal-BH-1 horizontal well has now reached total depth of 2285m, including a 550m horizontal section within the Mt. Messenger Formation (1735-2285m) in the Company’s 100%-controlled Cheal oil and gas field. Uphole mudlogs have recorded better than expected oil and gas shows within the secondary Urenui Formation target at a depth of approximately 1400m. In the Mt. Messenger horizontal section of the well, a total of 430m of continuous reservoir penetration is interpreted with high oil and gas readings during the drilling operations. The multi-phase fracture completion assembly has now been successfully landed at a total depth of 2280m, with all stage packers successfully deployed.
The drilling rig has now been released, and the Company is mobilizing a service rig onto location to complete the five-stage fracture stimulation.
"With the completion assembly installed across the lateral section of the Cheal-BH-1 well, we can commence the multi-stage fracturing operation in the next few days prior to commencement of production testing of New Zealand’s first horizontal multi-stage fractured well by mid-November," noted Mr. Johnson.
About TAG Oil Ltd
TAG Oil Ltd (tagoil.com) 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.
"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. Actual results may vary materially from the information provided in this release. As a result, 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. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. 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 Instrument 51-101.
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.
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