TAG Oil's Cheal Infrastructure Expansion Complete Paving Way for Continued Oil & Gas Production Growth in Taranaki

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[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, April 4, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:\n TAOIF), is pleased to report that the Company's Cheal infrastructure\n expansion project in the Taranaki region of New Zealand has been\n completed. Together with TAG's existing production infrastructure and\n pipeline network, the Company now has the capacity to fully\n commercialize the successes (past and future) of its onshore Taranaki\n Basin assets.\n\n\nThis major expansion establishes TAG Oil as a completely independent\n processor, transporter, and marketer of the gas the Company discovers,\n extracts and produces, opening significant new opportunities to supply\n the thriving Taranaki natural gas market.\n\n\nShut-in wells now being placed into long-term production \n\n\nWith this completed infrastructure expansion, previously shut-in wells\n from TAG's successful 2012 shallow drilling program are now being\n placed into long term production. The Company will continue to identify\n areas of the new infrastructure that requires optimization, as final\n commissioning work continues in the coming weeks. TAG's total\n production capability from tested shallow wells and the new liquids\n potential of the expanded gas plant is in excess of 5000 barrels of oil\n equivalent per day.\n\n\nTAG Oil CEO, Garth Johnson commented, \"I congratulate our entire team\n who have worked tirelessly to finish this project on time and on budget\n and they've done so to the highest safety and environmental standards.\n Even more impressive is the fact that during this complex\n infrastructure project, the team continued our unprecedented rate of\n successful new well drilling in Taranaki. With control of this critical\n infrastructure, TAG Oil is poised to grow even stronger, including new\n opportunities to leverage our natural gas assets.\"\n\n\nNew Zealand market drives value of TAG's oil up to 30% and gas up to\n 100% higher than Q1 2013 North American prices.\n\n\nOne component of the Company's strategic focus on New Zealand - and a\n driver of the Cheal infrastructure expansion - is the high relative\n value of the oil and gas TAG produces. In addition to enjoying oil\n prices which, in February 2013, averaged CDN$30/bbl higher than West\n Texas Intermediate, TAG's contracted gas price (NZ$5.40/mcf) is more\n than double the 2012 Canadian gas price averag...

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