TAG Oil Spuds Mangamingi Exploration Well, Updates Operations
January 10 2007 - 10:14AM
PR Newswire (US)
VANCOUVER, Jan. 10 /PRNewswire-FirstCall/ -- Independent Canadian
oil and gas company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF)
announced that the Mangamingi-1 exploration well located in PEP
38758 (TAG 100%) in onshore Taranaki, New Zealand, has commenced
drilling operations. Bonus Drilling Rig #2 will drill an 1,835m
directional well targeting several previously untested exploration
targets. Mangamingi-1 will take approximately 14 days to reach
Total Depth. TAG Oil President Drew Cadenhead commented:
"Mangamingi-1 is the first well to test the hydrocarbon potential
of a number of different targets in this eastern part of the
Taranaki Basin. We were encouraged by strong hydrocarbon indicators
from a geochemical survey we conducted last year, and followed that
with a 2-D seismic program that identified some interesting
structures. These seismic closures coincide with the geochemical
anomalies and we will drill this directional well through a number
of potential zones. We envisage potential in the conventional
shallow Kiore Sands similar to the Kauri Field to the South of us,
and further potential in the Urenui and Mt. Messenger Sands that
are producing oil at the Cheal Field, but we're also keen to test
the unconventional potential in the fractured Murihiku Basement."
Elsewhere in the Taranaki Basin, the Cheal Oil Pool Development and
Production Station Project, located in PMP 38156-S (TAG 30.5%),
continues in anticipation of full capability (1,900 bbls/day) by
the end of June 2007. At the Cheal Production Facility, the
foundations have been poured, and the installation of the three
large oil storage tanks and the fabrication of the first of two
separator vessels have all been completed. TAG anticipates that
workovers will commence this month on Cheal-3 and Cheal-4 to
prepare the wells for long term production into the Facility. The
four wells from the Cheal-B site that were drilled late 2006, will
also be completed and tested for oil flow capability. The Ratanui-1
well, located in PEP 38741 in onshore Taranaki, (TAG 45%) is
scheduled for a February spud date using Ensign Drilling Rig #19.
This 2,120m planned depth well is a follow-up to last year's
SuppleJack Drilling Program and will further test the Mount
Messenger potential in the proven hydrocarbon-prone SuppleJack
area. Cadenhead noted, "This well will penetrate a separate anomaly
from the SuppleJack wells, but will be integral to the commercial
development potential of the project as a whole." The well is
scheduled to take approximately 14 days to reach Total Depth. TAG
also announces that all land access agreements are now completed
for both the Kate and the Salmon prospects in the Canterbury Basin
on the South Island of New Zealand. TAG anticipates commencement of
the drilling program in February with the Kate-1 exploration well
in PEP 38260 (TAG 70%). This 2000m test will evaluate the Kate
surface anticline 30 km's North of Christchurch, New Zealand's
third largest city. This 15 square kilometer surface feature was
found to have high quality oil seeps around the perimeter of the
structure, and has not had a well drilled to date within the 1.3
million-acre Permit. Later in the year, a contingent test of TAG's
Salmon prospect in PEP 38256 (TAG 100%) is also anticipated.
Cadenhead commented, "We've been waiting a while to get Kate
drilled, having the access agreements in place is a big step
forward." 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
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