VANCOUVER, Aug. 11, 2011 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to report that strong test results confirm new oil and gas discoveries in the Sidewinder-2 well and the Cheal-C1 well, both located in the Taranaki Basin, New Zealand.
Lower Mt. Messenger Oil Discovery in Sidewinder-2 Well
TAG has completed isolated flow testing on oil-and-gas-bearing zones discovered in the Sidewinder-2 well. These additional productive zones were encountered in the shallower Urenui Formation and in the lower Mt. Messenger Formation, below the main Sidewinder gas zone discovery, which tested at stabilized rates of 8.8 million cubic feet per day (~1467 BOE per day).
Of particular importance are the oil-bearing sands Sidewinder-2 discovered in the lower section of the Mt. Messenger Formation (~1800m), where the Company recovered significant volumes of light oil during recent swab testing. Technical data suggests that this oil zone can produce at rates consistent with other established Mt. Messenger oil wells in the immediate area. These oil-bearing Mt. Messenger sands are interpreted to be widespread in the Sidewinder permit area and will be a primary target in future exploration wells.TAG will proceed to commercialize oil production from the lower Mt. Messenger zone and will acquire artificial lifting equipment that will best suit the overall Sidewinder exploration and development strategy. Also of interest in Sidewinder-2 is the gas discovered in the shallow Urenui Formation (~1400m). The Company tested clean, dry natural gas at rates ranging from 1 to 2 million cubic feet of gas per day (167- 333 BOE's per day) utilizing various choke sizes. Production from the Urenui Formation zone can be commercialized by comingling with the main Sidewinder gas zone. TAG CEO Garth Johnson commented, "We continue to achieve excellent exploration results which indicate that TAG has potentially discovered a large oil and gas field at Sidewinder. In addition to the prolific main gas zone discovered, there are now two significant high-impact discovery zones to pursue in this acreage. This new Mt. Messenger oil discovery will add high net-back oil production to the ~5000 BOE's of behind pipe awaiting commissioning of the Sidewinder production facilities." The Sidewinder oil and gas discoveries are located in TAG Oil's Petroleum Exploration Permit 38748 (TAG 100%) in the Taranaki Basin, New Zealand. Cheal-C1 Testing Confirms Oil Discovery TAG also reports that testing of the Cheal-C1 exploration well confirms the oil and gas discovery in the Cheal "C" area. Cheal-C1 intercepted oil-and-gas-bearing sands in the Mt. Messenger Formation producing substantial volumes of light oil during swab testing along with clean, dry gas at rates between 1.5 million to 3 million cubic feet per day.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV