TAG Oil Announces Ratanui-1 Results, Updates Operations
February 14 2007 - 6:10PM
PR Newswire (US)
VANCOUVER, Feb. 14 /PRNewswire-FirstCall/ -- Independent Canadian
oil and gas company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF)
announced that the Ratanui-1 exploration well in PEP 38741 (TAG
45%) in onshore Taranaki, New Zealand, has reached a Total Depth of
2,120m (6,955'). After evaluation of wireline and drilling data,
the Joint Venture (Austral Pacific 55%, TAG 45%) has agreed to plug
and abandon the well. TAG Oil President Drew Cadenhead commented:
"The target Mt. Messenger Sands at Ratanui-1 were well-developed
but interpreted as water-wet. The Joint Venture can now decide what
course of action to take to determine the commercial feasibility in
developing the off-setting SuppleJack gas-condensate discovery."
Mangamingi-1: The Mangamingi-1 well (TAG 100%) in PEP 38758,
onshore Taranaki, New Zealand, is now ready for completion and
testing. Certain equipment and personnel from the Ratanui-1 drill
site will be moved immediately to the Mangamingi site. TAG
anticipates commencement of production testing by the end of the
month. Cheal: The Cheal development program in PMP 38156-S (TAG
30.5%), onshore Taranaki, is progressing on-time and on-budget.
Production testing has now been initiated on the recently drilled
Cheal-B site wells. Cheal B-1 is currently under test and has
averaged 170 BOE/D (133 BOPD + 225 mcf/d) in the first seven days
of the test program. "Cheal B-1 will be another solid cash flow
contributor to the overall Cheal production scheme. This project is
creating a strong foundation for TAG's continuing exploration
efforts in New Zealand," says TAG Oil President Drew Cadenhead.
Kate: On February 8th 2007, TAG announced the cancellation of the
Kate-1 well in the Canterbury Basin, South Island New Zealand. TAG
reiterates the company has at all times been prepared to honor its
obligations under an Agreement with Green Gate Limited to explore
the onshore portion of PEP 38260. TAG had already completed all
necessary seismic work and arranged drilling contracts and
pre-drilling construction work in anticipation of spudding Kate-1.
President Drew Cadenhead says, "This was a difficult decision for
TAG to make, but we felt it was inappropriate to continue on with
the well when there was uncertainty relating to working interests
in the permit. Drilling in these circumstances would have meant
putting significant TAG shareholders' funds at risk." TAG is
continuing to take legal advice. 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 3,105,211 gross acres (net 1,428,393).
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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