TAG Oil Blog

Cheal-B4ST exploration well gives us a strong flow test from multiple zones.

Posted by Kris Clark on May 31, 2011 12:09:00 AM

TAG Oil's Map of Taranaki Basin, New ZealandNews just how we like it: We drilled the Cheal-B4ST vertical exploration well to 1821m and encountered net pay in both the Urenui and Mt. Messenger Formations. Flow rates averaged 400 BOE per day (360 barrels of oil + 240 thousand cubic feet gas) after the first week of production.

The well encountered 17 meters of net pay within the Urenui at ~1400m and Mt. Messenger at ~1700m. These Miocene-aged zones were isolated and tested separately, confirming oil and gas flow rates from both. The Urenui test really opens a door on the potential reserve growth of the Cheal oil and gas field, which til now has relied on the Mt. Messenger formation only. The potential for PMP 38156 is just at the tip of the iceberg we hope.

Topics: Mt. Messenger, Urenui, Cheal Oil Field, Sidewinder Discovery

Cheal-B4ST exploration well perforation.

Posted by Kris Clark on May 28, 2011 12:16:00 AM

A few great photos of Darren dropping the bar to perforate Cheal-B4ST. 

Darren dropping the bar to perforate Cheal-B4ST



Topics: Cheal Oil Field

Cormark Securities, oil and gas analysts.

Posted by Denise della Santina on May 25, 2011 2:11:00 PM
Cormark Securities Inc. oil and gas Analyst David Beddis initiated investment coverage on TAG today.

Topics: third-party reports, Financial coverage

The roster of analysts continues to grow…as does TAG’s pipeline.

Posted by Kris Clark on May 25, 2011 12:17:00 AM
TAG Oil pipeline

David Beddis of Cormark Securities Inc. is now following TAG Oil. The current list of analysts includes: Peter Nicol of GMP Securities, Bill Newman of Mackie Research Capital, and Kevin Shaw of Wellington West Capital Markets Inc.

While any opinions regarding TAG’s performance made by these analysts are theirs alone, we think the coverage is an indication of TAG Oil’s sound strategy borne out by recent drilling and discovery results.

Meanwhile, lots of welding along the roadside as our pipeline grows. Most of this should be buried within a couple days. The pipe with the big bends will be done after....

Topics: third-party reports, Financial coverage, pipeline

TAG gets a substantial oil and gas reserve increase from Sproule.

Posted by Kris Clark on May 18, 2011 12:17:00 AM

Sproule International Limited, one of Canada’s largest independent petroleum engineering consulting companies, has released an assessment of TAG’s reserves in the Cheal Mining Permit and Sidewinder Exploration Permit increasing our probable reserve substantially.

After considering 2011 production, the 1,677,000 BOE in proved and probable reserves represents a 221% increase over their March 2010 reserve assessment.

Due to fiscal year-end 2011 cut-offs and the timing of April and May Sidewinder ops, the reserves relate primarily to the Cheal oil and gas field. Sidewinder’s reserve assessment was completed with information related only to the Sidewinder-1 well, and doesn’t (yet) include the now-completed Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells. We think this just means more good news for the future.

The assessment of reserves has assigned net proved and probable reserves remaining of 1,360,000 barrels of oil (2010 = 651,000 bbls) and 1,864 mmcf of associated gas (2010 = 258 mmcf). This reserves report, on a 2P basis, amounts to 1,677,000 barrels of oil equivalent assessed in a reserves area covering just 475 acres of the 7,487-acre Cheal permit and just 107 acres of the 7,910-acre Sidewinder permit.

TAG Oil exploration

Topics: Announcements, Cheal Oil Field, oil and gas production, Sidewinder Discovery

Cheal Exploration drilling with a step-out well.

Posted by Kris Clark on May 16, 2011 12:18:00 AM

Exploration drilling is set to resume at Cheal; our next target is the Cheal-C1 exploration well, a 3.5-kilometer step-out well to the northwest of where we’re already producing light oil and gas. Cheal-C1 will test the Mt. Messenger (~1800m) and Urenui Formation sandstones (~1400m) ID’d on 3-D seismic and supported by strong bypassed oil and gas shows in the nearby deep Cardiff-1 well (~4000 meters) drilled by a previous operator back in 1995. Positive results from Cheal-C1 will lead to an immediate rig skid on the Cheal C site to drill the directional Cheal-C2 well targeting the same multiple formations located about 500 meters (1640 feet) northeast.

Topics: Mt. Messenger, Urenui, Cheal Oil Field, Cardiff Deep Gas

TAG Sidewinder gas pipeline gets welded.

Posted by Denise della Santina on May 12, 2011 4:59:00 PM

And some more Sidewinder gas pipeline photos are in from the field, these showing some of the welding process. The drizzle shouldn't slow things down, as TAG works to link its gas discovery with the North Island's main high-capacity pipeline.

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Topics: pipeline, Sidewinder Discovery

Flow test preparations.

Posted by Kris Clark on May 10, 2011 12:20:00 AM

Completion operations and flow testing of the Cheal-B4ST discovery well, the first of our high-impact exploration wells to be drilled in TAG’s Taranaki Basin acreage, is underway. Cheal-B4ST encountered 17 meters (56 feet) of net pay within four previously untested Miocene-aged zones…

Flow testing of Cheal-B4ST discovery well

Topics: Cheal Oil Field

Laying track: the Sidewinder gas pipeline is underway.

Posted by Denise della Santina on May 9, 2011 2:51:00 PM

Here we are building, on a great fall day, the pipeline that will link gas from TAG's Sidewinder oil and gas discovery into the Taranaki Basin's main high-capacity pipeline. 

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Topics: pipeline, Sidewinder Discovery

750 barrels a day…and that’s just the beginning.

Posted by Kris Clark on May 9, 2011 12:21:00 AM
TAG Oil PMP 38156 Cheal oil and gas field

TAG Oil’s PMP 38156 Cheal oil and gas field is producing about 750 barrels of oil equivalent a day…so far. That’s just 4 out of the 9 flowing wells, from the relatively shallow Mt. Messenger and Urenui Formations, with a lot more drilling operations and completion work still to go.

With proven and probable (2P) reserves presently assigned to only ~5% of the total Cheal Mining Permit acreage, the Cheal Mining Permit has some solid reserve and production growth potential. Especially if you look at how lightly explored the area is, and the number of perspective producer formations we still have to go at depths of 1400 to 4000 meters.

And owning our own oil and gas production infrastructure at Cheal allows TAG to control the timing of operations in case we want to fast-track any production arising from additional successes. There’s a lot of work ahead, but all in all it’s a good spot to be in.

Topics: Mt. Messenger, Urenui, Cheal Oil Field, oil and gas production

Sidewinder oil discovery flow test preparations.

Posted by Kris Clark on May 7, 2011 5:26:00 PM

Prepping to commence flow testing of Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells in a few weeks’ time. And we keep cranking on the Sidewinder Production Station for its anticipated completion by mid-year.

Topics: oil and gas production, Sidewinder Discovery

Sidewinder-4…another oil and gas strike.

Posted by Kris Clark on May 6, 2011 5:16:00 PM
Sidewinder-2

Fortunately, this kind of news never gets old. The Mt. Messenger sandstones and PEP 38748 continue to pay off.

The interpreted total hydrocarbon column at TAG's Sidewinder discovery now exceeds 60 meters in thickness, with no water column evident in any of the Sidewinder wells.

The Sidewinder-4 well, sidetracked to a location down-dip of Sidewinder-3, targeted a fault-bounded 3-D anomaly which intercepted a gross 29 meter-thick sandstone reservoir. Total depth is 1410 meters with 19 meters of net oil-and-gas-charged sandstones; electric logs indicate hydrocarbon charge to the base of the sandstone. Free oil was observed over the shakers during the drilling operation from the target zone, and consistent with all of the Sidewinder wells drilled to date, the oil-and-gas-charged sandstones encountered in Sidewinder-4 have excellent porosity and permeability.

Topics: Mt. Messenger, Announcements, Sidewinder Discovery, PEP 38748