TAG Oil Blog

Oil and gas exploration as (responsible) economic engine

Posted by Denise della Santina on May 26, 2013 10:19:00 PM

There’s been a lot of good, constructive dialogue in New Zealand recently between industry, indigenous populations and local government, most recently in the East Coast Basin where TAG Oil is actively exploring and the Ngati Kuhungunu iwi live.

As reported recently in the online FW+, iwi members are supporting economic development in addition to tending to environmental concerns.

describe the imageTAG is 100% committed to observing blue-chip standards of operation, and we take our responsibility to the environment very seriously. Over the past 15 years, we’ve developed resources in the safest way possible -- with the most sophisticated methods available -- doing our utmost to not compromise New Zealand’s rich beauty or natural resources. We’ll continue to do so, and we very much appreciate it when our professionalism and care are acknowledged and respected as much as we respect the concerns of our neighbors.

We live here too, with our children and grandchildren. We’re also engineers, scientists and business people who apply substantial resources to due diligence and the search of facts and knowledge. An open, informed and measured discussion on balancing economic and environmental concerns is critical, and we look forward to continuing the conversation.

“The iwi wanted to help the whole community into work. Oil and gas exploration could help achieve that….” To link to the full FW+ article, please click here: http://bit.ly/Z3p9u4

Topics: East Coast Basin, unconventional oil, New Zealand, Canterbury Basin

Intersecting oil & gas shows in our East Coast Basin source rock

Posted by Denise della Santina on May 20, 2013 10:29:00 AM

Our team is happy to report that our Ngapaeruru-1 exploration well successfully drilled through the Waipawa and Whangai source rock formations in permit 38349, an area we call Boar Hill. Early mud-log analysis returned predominantly wet gas and oil indications – meaning the presence of gas zones or soluble gas in oil – which is incredibly exciting.

This was our first unconventional target in the East Coast Basin, and New Zealand’s first test directly targeting the naturally fractured Waipawa and Whangai formation source rocks, which have been estimated to contain a significant oil and gas resource. While we encountered tricky drilling conditions, everything went smoothly. 

Now on to analysis.

During drilling we cut and recovered sidewall cores over several intervals within the 155 meters of potential unconventional oil and gas pay, sampled total organic content (TOC) and acquired gas analysis at depth. Our team, as well as independent labratories, are now undergoing a detailed evaluation and analysis to determine source rock quality, fracture identification, geochemistry, and more. This data will not only help us better understand the long term feasibility of our East Coast Basin opportunity, but it will guide our technical team to the best completion method and production testing of the well. 

We’ll keep you updated!

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 Sunset over the groundbreaking Ngapaeruru-1 exploration well.

Topics: exploration well, East Coast Basin, unconventional oil, tight oil

Targeting first oil & gas discovery potential in the ECB

Posted by Denise della Santina on May 2, 2013 1:56:00 PM

Here's one of the first photos to come in from TAG Oil's Ngapaeruru-1 wellsite, spudded on April 22nd. Our exploration team is targeting the Waipawa Black Shale and Whangai source rock formations at an anticipated depth of 1,800 meters to test the unconventional discovery potential in this portion of New Zealand's East Coast Basin.


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This is another step in TAG's long-term strategic plan: to leverage the success -- and cash flow -- of the Company's lower risk conventional assets in the Taranaki Basin, in order to intelligently pursue higher impact exploration opportunities elsewhere in New Zealand.

The Waipawa Black Shale and Whangai formations are oil-and gas-rich source rocks present throughout most of TAG's million-acre East Coast Basin land holdings. Oil sampled from seeps on TAG's East Coast permits proved to be from the Waipawa Black Shale and Whangai formations, and high-quality live oil recovered from shallow wells drilled in 2011 was also confirmed to be generated from these source rocks

Extensive geotechnical work on TAG's East Coast acreage, including proprietary 2D and 3D seismic, have confirmed that the source rock parameters compare favorably to commercial unconventional tight oil and gas plays throughout the world, comparable in total organic carbon content and oil and gas maturity levels, for example, to North Dakota's Bakken shale. 

Topics: exploration well, East Coast Basin, unconventional oil, Technical team, tight oil