TAG Oil Blog

Reporting on the Cardiff-3 deep gas well

Posted by Denise della Santina on Feb 25, 2014 9:22:00 AM

TAG Oil set out to establish a strong foundation (both operationally and financially) on its Taranaki shallow oil and gas opportunities, and with 31 successful wells in just a few years, we're pretty happy with how that's gone. But those of you who have been with us for awhile, know that we've also had an eye on prospects with even greater potential, such as the East Coast Basin's unconventional oil, and the Taranaki Basin's deep Eocene-level oil and gas. 

In the current quarter, TAG successfully drilled, logged and cased its first deep Eocene well,Image 1 Cardiff-3, which went to 4,863 meters depth, and intersected 45 meters (148 feet) of potential pay in the successful Kapuni Sands Formation. (We say "successful" because the Kapuni is a proven, strong producer elsewhere in the Taranaki, and its discovery by BP Shell Todd launched a new energy era for New Zealand a few decades ago.) And in the hopes of launching the next era in New Zealand energy, we're prepping to test Cardiff-3 in the near future.

Our shallow drilling program is still intrinsic to TAG's short and long-term success, but the goal with deep drilling is to capture reserves many times larger than what's possible with shallow Miocene drilling. An independent assessment by Sproule International Limited (effective 7/31/13) estimated the undiscovered resource potential on the Cardiff prospect on a P50 basis at 160 billion cubic feet gas and 5.59 million barrels of natural gas liquids.*  Time will tell!

For past posts on the Cardiff deep gas well:

December 10, 2013, A quick update on Cardiff's deep gas / condensate well

November 15, 2013, Cardiff-3 Deep Gas Drilling: One zone at a time, so far so good...

October 25, 2013, 30-Days' Deep on Cardiff-3

September 19, 2013, Drilling Deep in the Taranaki Basin

** Footnote **

Sproule is a qualified reserves evaluator in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook. Best Estimate is considered to be the best estimate of the in-place volumes that will actually be present. It is equally likely that the actual in-place volumes will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the in-place volumes will equal or exceed the best estimate.

Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of undiscovered petroleum initially in place is referred to as "prospective resources," the remainder as "unrecoverable."

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.  Prospective resources have both an associated chance of discovery and a chance of development.  There is no certainty that any portion of the resources will be discovered.  If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.

Topics: exploration well, Taranaki, Cardiff Deep Gas

Peanut butter & jelly, oil & gas, kids & dinosaurs

Posted by Denise della Santina on Feb 20, 2014 1:40:00 PM

Screen Shot 2014 02 19 at 3.16.47 PMSome combinations, like the ones in our title,  are tried and true classics. While others need a little extra encouragement.

So TAG Oil and its Kaheru joint venture partners Beach Energy and New Zealand Oil and Gas are harnessing kids’ love of dinosaurs – and their unlimited imaginations – to bring science to life outside of the classroom.

We’re in the business of fossil hunting, and we think there’s a great story to tell right under the feet of New Zealand’s kids that will ignite their interest in geology and the sciences in general.

So the JV is sponsoring “What Lives Down Under,” to teach and engage online and in a traveling roadshow. It’s fun for us to get in touch with our inner kid once in awhile, too.  

Topics: Taranaki, Announcements, New Zealand, oil and gas production

Report confirms Ng-1 oil generated from Whangai unconventional rocks

Posted by Denise della Santina on Feb 19, 2014 5:08:00 PM

We've been not so patiently awaiting the results of the independently conducted Reservoir Characterization Study (RCS) on TAG Oil's East Coast Basin, unconventional Ngapaeruru-1 well, and it has finally arrived. 

oil-rich Whangai shaleThis RCS study provides the first true unconventional data set ever acquired in the East Coast Basin, and the quality of this state-of-the-art data set provides the first specialized interpretation necessary to unlock the major oil and gas potential of TAG's East Coast Basin unconventional play.

As our team had hoped, the study confirms that oil is being generated in the Whangai source rocks, as well as a number of critical positives showing the Whangai to be a viable unconventional oil target. Not that it's a surprise to us, but independent confirmation is always good. (This is a studio shot of our oil-rich Whangai shale, above.)

A few highlights include:

- Analysis places the Whangai source rocks in the oil/condensate window, correlating well with the 50-degree API oil seeps in the basin

- The hydrocarbon-filled porosity exceeds the minimum standard thresholds for unconventional reservoirs

- Permeabilities exceed standard unconventional reservoir thresholds

- The Whangai Formation has very low clay content, indicating fracture stimulation can be highly effective

In order to prove the viability of moveable hydrocarbons from within these source rocks and the economic viability of this unconventional play, TAG can now move on scheduling perforation and production testing of Ngapaeruru-1.

For more detailed information, see our recent Q3 press release. And stay tuned for what happens next!

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