TAG Oil Provides Operational Update

About this update from Tag Oil Ltd

[{"type":"text","content":"\n\n\n\nTAG Oil Provides Operational Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Oct. 19, 2017\n\n\n\nVANCOUVER, Oct. 19, 2017 /CNW/ - TAG Oil Ltd. (\"TAG\") (TSX: TAO and OTCQX: TAOIF) announces the following update on its operations in New Zealand and Australia. \n\nNew Zealand\n\nNet production to TAG in New Zealand averaged approximately 1,110 boe/d over September, which is down slightly from the 1,169 boe/d (79% oil) average over the three months ended June 30, 2017. The decline is the result of several factors, but is primarily due to the Cheal-A12 well being shut-in due to a pump failure and the waterflood response taking longer than expected to begin increasing production. Recent workover activity over the past week has restored approximately 140 boe/d and TAG expects to exit fiscal 2018 at March 31, 2018 with production of ~1,300 boe/d.\n\nThe decline in production has been partially offset by the recent rise in the price of Brent crude. Over September, the average price received by TAG was approximately US$58/bbl after taking in to account the quality differential that TAG receives for its oil.\n\nTAG's waterflood program is continuing, with water injection rates of ~2,000 bw/d at the Cheal permit (PMP 38156, 100% TAG) and ~900 bw/d at the Cheal East permit (PEP 54877, 70% TAG). There are very early indications of a pressure response and lower than forecast decline rates at the main Cheal permit field; however, based on additional modelling work and more accurate pressure data, current expectations are that a more definitive uplift of production and recovery factors will likely be seen by mid-2018. \n\nOn the exploration front, preparations are underway for the drilling of the Pukatea-1 exploration well (PEP 51135, 70% TAG). The well is tentatively scheduled to spud on January 31, 2018, which will be targeting the Tikorangi Limestone formation in a location up-dip and above the lowest known oil produced from the adjacent Waihapa field. \n\nAustralia\n\nIn Australia, production from the Bennett field is over 20 bbl/d of l...

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