Business
TAG Oil's Taranaki Basin Success Paves the Way for Future Growth in New Zealand
VANCOUVER , May 28, 2013 /CNW/ - May 28, 2013 - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TA...
About this update from Tag Oil Ltd
[{"type":"text","content":"\n\n\nVANCOUVER, May 28, 2013 /CNW/ - May 28, 2013 - TAG Oil Ltd. (TSX: TAO)\n and (OTCQX: TAOIF), reports that with the completion of the Company's\n Taranaki Basin production facility expansion and associated pipeline,\n all but six wells capable of commercial production have now been tied\n into the facility and optimized for long-term production.\n\n\nWith all production facilities (100% owned and operated by TAG) now in\n place, the Company is able to rapidly commercialize any new discoveries\n and leverage its strong Taranaki-region operational position. This\n includes maximizing TAG Oil's position as a completely independent\n processor, transporter, and marketer of the oil and gas the Company\n discovers, extracts and produces.\n\n\nTAG's current production — entirely from the shallow Miocene section\n within the Cheal and Sidewinder fields — varies between 2,500 to 3,000\n barrels of oil equivalent per day (\"BOE\"), with an average baseline\n production of 2,700 BOE's per day over the past ten days. Baseline\n production will increase as remaining shut-in wells are brought on\n stream, as well as any success arising from the ten new wells planned\n to be drilled by year's end which could materially increase this\n production figure.\n\n\nThis baseline production and cash-flow platform, combined with extensive\n production infrastructure provides a strong foundation for TAG Oil's\n foray into many years of high impact exploration opportunities. New\n Zealand is recognized as an untapped oil and gas frontier with some of\n the best fiscal terms and lowest royalties in the industry, and where\n TAG can enjoy the benefits of a high impact international portfolio\n without the political and economic disadvantages associated with many\n other parts of the world.\n\n\nRobust netbacks of $73 per barrel of oil and $3.88 per MCF of gas.\nTAG's current production in Taranaki consists of roughly a 46/54 split\n of light oil and natural gas: TAG receives Brent Crude oil prices which\n averaged 15% higher than North American pricing year-to-date, and a\n thriving New Zealand natural gas market with prices at 34% higher than\n North America.\n\n\n\"TAG Oil's shallow drilling campaign of the past two years resulted in\n baseline production from a well-executed drilling campaign. In addition\n to adding reserves and cash...