Business
TAG Oil Ltd. Provides Taranaki Operations Update
VANCOUVER , Jan. 9, 2014 /CNW/ - TAG Oil Ltd. (the "Company" or "TAG") (TSX: TAO) an...
About this update from Tag Oil Ltd
[{"type":"text","content":"\n\nVANCOUVER, Jan. 9, 2014 /CNW/ - TAG Oil Ltd. (the \"Company\" or \"TAG\") (TSX: TAO) and (OTCQX: TAOIF) is pleased to provide the following exploration and development drilling update in both the shallow and deeper targets within the Taranaki Basin. As TAG enters calendar year 2014, the Company will be maintaining its strategy of deploying capital to high impact exploration targets while developing shallow reservoirs to provide sustainable capital for continuous exploration activities.\n\nDeep / Eocene Exploration Taranaki Program (TAG 100%)\n\nTAG is pleased to announce the Cardiff-3 well targeting the Eocene-aged Kapuni Formation reached Total Depth of 4,863 meters in December, fully penetrating and evaluating all three deep target zones as planned; the well took longer to drill than anticipated due to encountering thick coal sections in the Eocene-aged Mangahewa Formation. \n\nCondensate-rich gas shows were recorded in all three target zones within the Kapuni Formation and as a result TAG is casing the well to total depth and will pursue a completion and testing program. Evaluation will begin with perforation and, if necessary, hydraulic stimulation of the deepest targeted prospect, the Kapuni K3E zone. Following evaluation of the K3E zone, the shallower K1A and Mckee Sand zones will be evaluated and a decision will then be made on an overall production strategy.  In total TAG encountered over 230 meters of potential net pay over the three target zones to be evaluated.\n\nTAG COO Drew Cadenhead commented; \"Significant data collected during the drilling operation is encouraging, and we will now move on to flow-testing which is the only definitive way to evaluate commercial success in these condensate rich tight-gas plays. This next stage of evaluation will occur throughout the next few months.\"\n\nShallow / Miocene Development Taranaki Program\n\nCheal-E Site (TAG 70%)\n\nTAG successfully completed its initial five well drilling program at the Cheal-E Site in mid-December. Cheal-E1 has been naturally flowing through a 17/64\" choke, for 44 days and has produced at an average of 547 BOE/d (88% oil) while Cheal-E4 has been naturally flowing through a 10/64\" choke for 7 days and has produced an average of 315 boe/d (87% oil). In aggregate Cheal-E1 and Cheal-E4 have produced more than 23,100 barrels of oil (26,400...