TAG Oil Suspends Cheal B-4 Well for Potential Sidetrack Operation; Starts Mobilization of Bonus #2 Drilling Rig to Mangamingi Ex
December 22 2006 - 2:49PM
PR Newswire (US)
VANCOUVER, Dec. 22 /PRNewswire-FirstCall/ -- Independent Canadian
oil and gas company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF)
announced that the Cheal-B4 directional well located in PMP
38156-01 (TAG 30.5%) New Zealand, has reached a total measured
depth of 2900m (9514'), vertical depth of 2362m (7750'). After
evaluating the wireline logs, the Joint Venture has agreed to
temporarily suspend operations on the well while considering a
potential sidetrack operation. President Drew Cadenhead noted:
"Cheal B4 has intercepted a couple of thin oil zones. This well is
the first well into a previously untested fault block in this Cheal
area and we are happy to prove that oil is clearly trapped in this
compartment as well as the main Cheal area tested with our previous
three development wells from the B-site. What we need in this Block
is thicker reservoir sands. We'll now focus on testing and
completing our first round of Cheal development wells and
maximizing cash flow from the project in the New Year."
Participants in the Cheal program are the Company (30.5%),
Arrowhead Energy Limited (33%) and Austral Pacific Energy (NZ)
Limited (36.5%). TAG also announced that the Bonus Drilling Rig #2
has commenced mobilization to the Mangamingi-1 exploration wellsite
located in PEP 38758 (TAG 100%, operator) New Zealand. Cadenhead
commented, "The Bonus Rig was held up on another operators well
longer than anticipated. We were hoping to get our well drilled
before Christmas, but it looks like we'll now be spudding first
thing in the New Year." Mangamingi-1 is the first well to be
drilled on PEP 38758 based on the results of 35 km's of 2D seismic
that the Company collected in January 2006, as well as detailed
geochemical sampling that indicated hydrocarbon presence in the
area. About TAG Oil: TAG Oil Ltd. is an independent Canadian oil
and gas exploration and production company with a well-balanced
portfolio of assets in and around the Canterbury, Taranaki and East
Coast basins of New Zealand. With exploration permits totaling
3,686,593 gross acres (net 1,847,593). TAG Oil is one of the
largest holders of prospective acreage in New Zealand. Forward
Looking Statements: Statements contained in this news release that
are not historical facts are forward-looking statements that
involve various risks and uncertainty affecting the business of TAG
Oil. Actual results may vary materially from the information
provided in this release. As a result there is no representation by
TAG Oil that the actual results realized in the future will be the
same in whole or in part as those presented herein. Actual results
may differ materially from the results predicted, and reported
results should not be considered as an indication of future
performance. Factors that could cause actual results to differ from
those contained in the forward-looking statements, are set forth in
filings that the Company has made, including the Company's most
recent reports in Canada under National Instrument 51-102 and in
the United States under Forms 20-F and 6K. The TSX Venture Exchange
has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release. CONTACT: Garth Johnson, ,
(604) 609-3350 DATASOURCE: TAG Oil Ltd. CONTACT: Garth Johnson, ,
(604) 609-3350
Copyright