TAG Oil Provides Update on Operations in the Taranaki Basin of New Zealand
VANCOUVER, March 22, 2017 /PRNewswire/ - TAG Oil Ltd. (the "Company" or "TAG Oil") (TSX: TAO andOTCQX: TAOIF) is pleased to provide the following update of its operations in the Taranaki Basin of New Zealand. Net production to TAG from its Cheal and Sidewinder fields has recently averaged approximately 1,300 boe/d (~80% oil) over February 2017.
PMP 38156 (Cheal and Cardiff, 100% TAG)
Clean up and testing operations are continuing on the Cardiff-3 well, which continues to flow intermittently at rates of 200 boe/d. TAG is planning several upcoming interventions to improve and stabilize flow rates out of the well to correct formation damage which occurred during drilling in 2013.
At Cheal, the Cheal-B waterflood is continuing with injection of approximately 900 b/d of water. Recent production rates from wells draining the Cheal-B pool have indicated that the wells are beginning to experience a positive production rate impact from the waterflood program. This effect is expected to increase over the upcoming months as water injection continues.
A planned 10-day shutdown of TAG's main Cheal processing facility is planned to commence on April 1st. During the shutdown, routine maintenance will be performed on the plant and production operations at Cheal will be suspended.
PEP 54877 (Cheal E, 70% TAG, Operator)
TAG is pleased to report that its second waterflood project in New Zealand has commenced at the Cheal E field with water injection via the Cheal-E7 well. It is expected that water injection rates will increase to 800 b/d, with an initial response projected to be seen in calendar Q3 2017.
PEP 57065 (Waitoriki, 100% TAG)
Drilling operations have been completed at the Supplejack-A2X exploration commitment well having reached the planned TD of 1,740 m. Well logs indicated the presence of well-developed reservoir sands; however, the sands were found to be water wet and the decision has been made to plug and abandon the well. The well was targeting a potential extension of the Supplejack field, which was successfully tested late last year to flow gas at rates of up to 7.2 mmscf/d from the Mt. Messenger Formation.
All current drilling commitments on the Waitoriki permit have now been met and development of the Supplejack field is continuing with first gas estimated for calendar Q4 2017.
Site Visit
TAG will be hosting a site visit and technical presentation for analysts and institutional investors at its technical headquarters located in New Plymouth, New Zealand, on March 30–31. All relevant information will be available online at TAG's website prior to the event.
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a development-stage international oil and gas producer with established high netback production, development and exploration assets, including production infrastructure in New Zealand and Australia. TAG Oil is poised for significant reserve and production growth with several oil and gas fields under development and high-impact exploration in proven oil and gas fairways. TAG Oil is debt-free and currently has 85,282,252 shares outstanding.
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. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All estimates and statements that describe the Company's objectives, goals, or future plans relating to operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. 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 will be the same in whole or in part as those presented herein.
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. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All estimates and statements that describe the operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Estimates and statements underlying the Company's objectives, goals, production rates, optimization, infrastructure capacity and/or future plans with respect to drilling involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered original initially in-place described above, availability of adequate funding, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers and changes in the regulatory and taxation environment.
While TAG Oil considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Actual results may differ materially from the information provided in this release, and there is no representation by TAG Oil that the actual results realized in the future will 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 Oil and its independent evaluator have made, including TAG Oil's most recently filed reports in Canada under NI 51-101, which can be found under TAG Oil's SEDAR profile at www.sedar.com. TAG Oil 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.
SOURCE TAG Oil Ltd.
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