TAG Oil Blog

Winter scenes from Cheal.

Posted by Denise della Santina on Aug 7, 2011 1:30:00 PM

Though it's winter in New Zealand, snowfall is still rare on the valley floor. Except for a few snowballs, it doesn't slow down work at the Cheal drill-site or Production Facility.

Snow at the Production Facility Snow in July
Ensign 6 service rig at the Cheal-C1 well, tests the multiple oil and gas bearing zones amidst a rare snowfall. Cheal oil and gas field production station with The first ever snow on-site Cheal oil and gas field production station.

Topics: Cheal Production Facility, Cheal Oil Field

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

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

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

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

Another light oil discovery at Cheal.

Posted by Kris Clark on Mar 3, 2011 4:38:00 PM
Cheal Formation Diagram
We put this cross section together illustrating the formations we’re intersecting, including Urenui, Mt. Messenger and Moki.

PEP 38156 (PMP 38156) came through. We drilled Cheal-B4ST to a total depth of 1810 meters, encountering 17 meters of net oil-bearing sandstones within the Urenui and Mt. Messenger Formations. Electric logs show great porosity and permeability, indicating four separate zones are likely to be oil-charged. Two of the four zones intersected are oil-bearing zones never before encountered in wells within this permit…demonstrating that the whole 7500-acre permit area is oil-prone, with multiple shallow horizons prospective for discovery.

Now it’s on to flow testing and the rest of the planned wells in our Taranaki Basin acreage.

Topics: exploration well, Mt. Messenger, Urenui, Announcements, PMP 38156-D, Cheal Oil Field

Preparations for Cheal-B4ST are in full swing

Posted by Kris Clark on Feb 14, 2011 4:03:00 AM
multi-phase frac
These are the actual balls we used for our multi-phase frac - forgot I had this photo on the camera

Permit 38156 is a hive of activity as we lay the groundwork for the new Cheal well. Cheal-B4 was suspended by its previous operator back in 2006…we're eager to see if our tests bear out as we think they will based on our data.

 

 

 

 

Topics: exploration well, PMP 38156-D, Cheal Oil Field

Phase II ends and Phase III begins.

Posted by Kris Clark on Jan 19, 2011 11:29:00 PM

Some pictures from the prep work for Phase 3 North Island Taranaki Basin ops, covering Cheal, Cardiff and Sidewinder.

Cheal-BH-1
Temporary pipe work at Cheal-BH-1—already our best well at Cheal—waiting on 225m of perfs.
Old Cardiff 2A wellhead
The old Cardiff 2A wellhead. Doesn’t look like much but there's gas down there.
 InterDrill rig
InterDrill rig at Sidewinder, ready to drill 3 more 25m conductor holes: Sidewinder-2, 3, and possibly 4

Topics: Mt. Messenger, Urenui, PMP 38156-D, Cheal Oil Field, Sidewinder Discovery, Cardiff Deep Gas, PEP 38748