Business
TAG Oil Announces 2015 First Quarter Results: Strong Revenue and Production Growth
VANCOUVER , Aug. 14, 2014 /CNW/ - After a successful first quarter 2015 drilling program,...
About this update from Tag Oil Ltd
[{"type":"text","content":"\n\nVANCOUVER, Aug. 14, 2014 /CNW/ - After a successful first quarter 2015 drilling program, TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to announce growth of production and associated revenues from first quarter operations and drilling activity. \n\nTAG's current net production at the beginning of August was 1,977 barrels of oil equivalent per day (81% oil), in line with the annual average production forecast of 2,000 boe/d for fiscal year 2015.\n\nDuring the quarter, TAG drilled and tested two successful development wells at the Cheal field in the Taranaki Basin of New Zealand; Cheal-B9 and B10 (100% TAG) that produced a combined average of 351 boe/d during testing. Production has remained steady, growing slightly as production methods are optimized as part of the testing program. The Company has now moved the Nova-1 drilling rig to the Company's PEP 38348 permit located in New Zealand's East Coast Basin to drill the Waitangi Valley-1 unconventional well targeting the Waipawa Black Shale and the thick Whangai source rocks.\n\nFollowing Waitangi Valley-1, the rig will return to Taranaki and complete the remainder of the Company's fiscal 2015 drilling program. This program consists of five more shallow wells including two step-out wells at the Sidewinder field, shifting the focus from gas wells to targeting the significant shallow oil potential identified. In addition, the Company is planning to drill the Boar Hill-1 unconventional exploration well in the East Coast Basin and one frontier exploration well in the Canterbury Basin.\n\nBased on stabilized production trends at Cheal, the Company's most recent results with Cheal-B9 and B10, and the number of development drilling prospects already identified, the Company is considering a number of business growth opportunities. One such opportunity may include contracting with additional drilling services required to expedite drilling operations, with a view to further grow shallow production within the Cheal and Sidewinder fields.\n\nTAG CEO Garth Johnson commented, \"I am very pleased with our operational progress and commend the team for successfully executing our ambitious drilling program safely. I am also pleased that we have expanded the scope of our oil development area into the Greater Cheal area (Cheal E and G sites) as we look at the potential to increase the pac...