TAG Oil Blog

30-Days' Deep on Cardiff-3 Drilling

Posted by Denise della Santina on Oct 25, 2013 2:31:00 PM

Cardiff-3 has reached a depth of 3,918 meters on day-30 of its drilling, and we expect it will take another two weeks to hit our projected depth of 4,900 meters. At that point, we should know whether to proceed with hydraulic fracturing stimulation or not, depending on the total meters of net gas pay, permeability, and the volume of original gas in place that we think we can access with this well bore.

If fracturing is required (the Taranaki Regional Council has granted consent, should it be called for), careful study has shown the formations we're targeting to be completely sealed by more than 4 kilometers of impermeable rock. And TAG will only use the new generation plant-based fracking fluids, which will be contained in a closed system along with the water used. 

On a mid-case (P-50) basis, the prospective resource estimate at Cardiff-3 is 160 BCF gas and 5.49 million barrels of condensate. Now only time...and a little more drilling...will tell.

Image 4

Topics: exploration well, Cardiff, Cardiff Deep Gas

Drilling Deep in the Taranaki Basin

Posted by Denise della Santina on Sep 19, 2013 8:27:00 AM

The team spudded the Cardiff-3 well on September 2nd, and we expect it will take six weeks total to reach its projected depth of 4,900 meters. As of yesterday, we were at about 1,000 meters.

This is the kickoff to our high impact, deep drilling campaign in Taranaki, which will run over the next six months, and it’s the first well to target one of our Kapuni Formation prospects. 

Kapuni, below the surface

The Kapuni Formation, comprised of the deep Oligocene and Eocene strata, is responsible forScreen Shot 2013 09 18 at 5.43.50 PM several major discoveries where 2P (proven and producing) reserves of 6.9 TCF gas and 372 mmbls oil/condensate have been discovered so far. This includes Shell’s nearby Kapuni Field, which has produced 1.5 TCF gas and 65 million barrels of condensate to date.

The Cardiff structure has been identified as a large anticlinal trap, some 12 km long by 3 km wide, with a number of potential pay zones within the Kapuni Sands Formation. The Cardiff gas/condensate discovery has the potential to become a substantial onshore resource, situated on trend and among several sizable deep gas/condensate discoveries in the Taranaki.

Gas with rich condensates was discovered at Cardiff within the upper Kapuni zone, which encountered 12m of net pay and flowed at over 3 million cubic feet and 100 barrels of condensate (light oil) per day with improving rates observed on long-term testing. This zone can be identified on 3D seismic to be a prospective target across the span of the Cardiff structure. And even greater resource potential exists in the deeper K1A and K3E zones, where strong gas shows were encountered over a gross 600m interval. This will be a primary target in the Cardiff-3 well.

And the big picture above the ground

More as this well, and our expanded Taranaki program as a whole, progress. We’ve got two drill rigs actively operating, and a third rig that will begin operating on our permit shortly, all within Taranaki’s main discovery fairway.

Things are rocking and rolling, and we’ll do our best to keep you informed!

Cardiff-3 deep well

Topics: Cardiff, Taranaki, Kapuni gas/condensate, Cardiff Deep Gas

Credit Suisse analysis? TAG Oil is differentiated from its peers.

Posted by Denise della Santina on Oct 5, 2012 8:50:00 AM
Credit Suisse logo

Credit Suisse has initiated coverage of TAG Oil, citing the company’s “layers of success” that include its portfolio of assets, location of operations, strong balance sheet and successful track record and demonstrated ability to execute.

What they specifically highlighted:

  • The 5,000 boe/d in behind pipe production that TAG is set to bring in by Q1/13 will contribute cash flow to a strong net cash balance of C$106 million at FQ1/13. That, plus the lack of long-term debt, will enable the Company to continue to self-fund its growth.
  • 380AandF prod 2012TAG’s proven success in the Taranaki Basin, and the Basin’s multiple layers of prospective hydrocarbon zones: the shallow basin plays of Cheal and Sidewinder which are fueling growth and profitability now, as well as the deeper condensate- rich plays of Hellfire and Cardiff, which will drive midterm growth in FY 2013 and 2014.
  • The potential of long-term tight oil: As exploration with Apache Corp continues in the East Coast Basin, the value generation potential of 13 billion barrels OOIP estimated in TAG Oil’s permit assets could be significant. 
  • New Zealand operations provide a low geopolitical risk, operating and transportation costs are lower cost than many North American oil and gas producers, and there are no seasonal considerations that impede many Canadian drilling operations.
You can access contact information for the Credit Suisse research analyst covering TAG Oil here.

Topics: East Coast Basin, Cardiff, Hellfire, third-party reports, unconventional oil, Financial coverage, Taranaki, Announcements, Apache Corp, New Zealand, Cheal Oil Field, tight oil

Cheal-C site testing photos

Posted by Denise della Santina on Nov 26, 2011 7:10:00 AM

New photos of the Cheal-C site are just in from the field. The wellhead in the center with the protection around it is the Cardiff-2A-ST1, which discovered deep liquid-rich gas.

Blog C Site

Mini-Cheal
Mini-Cheal set up for testing. This is it, starting from right: rented silver heater unit (runs on C2 gas), rental pump (blue), rental conditioning unit (green), and TAG’s silver heated storage tank.
 
Cheal-C1 and Cheal-C2 wells
The Cheal-C1 and Cheal-C2 wells: The red high pressure hose gets gas from C2 to heat our power fluid, and pipes bring the heated power fluid in—and oil out—on the C1 wellhead.
 
Jack Doyle, TAG Oil
Jack Doyle, TAG's head of engineering directs the team from Horizon.
Tank dipA tank dip is the only way to measure production for now.

Topics: Cardiff, Cheal-C site, Jack Doyle