TAG Oil Ltd., Vancouver, (TSX: TAO, OTCQX: TAOIF) has resumed drilling operations at its 100%-owned Cheal oil and gas field, with the spudding of the Cheal-C2 well. TAG anticipates drilling five new wells at Cheal before moving the drill rig to the Sidewinder oil and gas field, both oil and gas fields are located in the onshore Taranaki Basin, New Zealand.
This next phase of development drilling will continue to target the multi-zone Miocene prospects identified on 3D seismic within the Mt. Messenger (~1800m) and Urenui (~1400m) Formations. It is anticipated that commercialization of any successful new well arising from this drilling campaign can occur rapidly through TAG's 100%-owned production facilities.
In addition to the drilling activity, TAG Oil will also initiate a water flood program at the Cheal "A" pool. This secondary recovery strategy is both good oilfield practice and can cost-effectively increase ultimate reserve recoveries, as well as increasing the net present value of the pool.
"Given the strong results of TAG's previous drilling program, including six successful exploration wells drilled in succession over a six-month time span, I'm confident this next phase of drilling will continue to yield good results," says Garth Johnson, CEO. "Now that Apache Corporation has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG's East Coast Basin exploration permits, we can utilize TAG's strong working capital position and growing cash flow to accelerate exploration and development of our high-impact Taranaki acreage."
Recommended Reading
‘Oversupplied’ NatGas Market Aiding Williams’ Storage Business
2024-05-08 - Midstream company Williams saw overall demand growth as heavy gas volumes passed through its network.
Tallgrass Declares Open Season for CO2 Transport Pipeline
2024-05-06 - Tallgrass Energy’s Trailblazer project, originally a natural gas pipeline, would move greenhouse gas from Nebraska and Colorado and store it in geological formations in Wyoming.
Targa Expects Another Major Permian Pipeline Project This Year
2024-05-03 - Targa Resources says different projects are falling in place for gas capacity expansion
US Appeals Court Upholds FERC Approvals for Gas Pipeline Expansion
2024-05-02 - A unanimous three-judge panel of the U.S. Circuit Court of Appeals for the D.C. Circuit held that the Federal Energy Regulatory Commission was right to determine the Evangeline Pass Expansion project is functionally separate from four related gas infrastructure developments.
Enterprise Targets FID for SPOT Project by End of 2024
2024-05-01 - Enterprise Products Partners’ co-CEO disputed capex figures reported in the media regarding its Sea Port Oil Export Terminal.