TAG Oil Blog

National Bank Financial now covering TAG Oil

Posted by Denise della Santina on Sep 17, 2012 11:50:00 AM
National Bank Financialnbf logo initiates coverage on TAG Oil with an "Outperform" rating. They particularly appreciate the Company's attractive valuation, the mix of Taranaki Basin conventional oil and gas production with unconventional hydrocarbon exploration in the East Coast Basin, and our three high-impact, liquids-rich, drill-ready prospects, Cardiff and Hellfire.

Topics: third-party reports, unconventional oil, Financial coverage, oil and gas production

Improvements are good for TAG Oil and the neighborhood

Posted by Denise della Santina on Sep 5, 2012 10:33:00 PM
We’ve added attenuators (mufflers) on top of the power units for Nova-1 No more flaring to dirt pits for TAG! This is one of our new "flare stacks" with built in containment

(Top) No more flaring to dirt pits for TAG! This is one of our new "flare stacks" with built in containment. Though commonplace in Canada, this is a first in New Zealand. Other New Zealand operators are very interested to see how these work, as are the regulatory bodies in New Zealand.

(Left) We’ve added attenuators (mufflers) on top of the power units for Nova-1. These cut the rig noise almost in half, appreciated by neighbors and our team alike.

Cheal Production Station flare, which will be sold once the infrastructure upgrade is finished.

Cheal Production Station flare, which will be sold once the infrastructure upgrade is finished.

enjoying the winter sunshine

Here’s Jesse, a Cheal operator, enjoying the winter sunshine as TAG tankers "fill'er up."


Topics: Cheal Production Facility, Mt. Messenger, Taranaki, Cheal-C site, New Zealand, pipeline, Cheal Oil Field, oil and gas production

Sidewinder Facility: updating TAG Oil’s gas-processing capacity

Posted by Denise della Santina on Jun 27, 2012 10:29:00 AM

With the number of oil and gas wells TAG has online, waiting to come online, and yet to be drilled, we’ve been upgrading the infrastructure of our Cheal and Sidewinder oil and gas production facilities to ensure that we have the capacity to handle existing and future production.

Sidewinder’s compression unit has been installed and is now operational at full capacity with only two of four wells maintaining this capacity. These high deliverability reserves are being conservatively produced at approximately 8-10mmcf/d with the single compressor to ensure many years of profitable operations from the Sidewinder Production Facility. The Production Station has been purposely built in modules that will allow further expansion should drill results (we hope) warrant. 

TAG 004 sidewinder jun12
Sidewinder Production station entrance with beautiful Mt. Taranaki in the background.
TAG006 compressor jun12
Here’s the new compressor being fine-tuned. This is the unit that should increase field production to 8 to 10 million cubic feet of gas per day in the near future.
TAG 002 geymouth jun12
An interesting shot that shows our neighbor Greymouth Petroleum and the Tiger-1 drilling rig in the background; gives you a feel for how close they’re drilling to TAG‘s property.

Topics: Taranaki, Sidewinder Production Facility, oil and gas production

Average BOE production costs go down, as oil and gas production increases

Posted by Denise della Santina on Feb 14, 2012 3:40:00 PM

Here’s a compelling set of figures to come out of TAG Oil’s third quarter financials.

Production revenue increased to:

$12,976,714 for the quarter
(nine months: $26,206,992)

compared to

$3,851,621 (nine months: $8,078,684) in Q3 of FY2011

Per barrel production, storage and transport costs reduced to:

$6.94 per boe for the quarter
(nine months: $10.73)

compared to

$16.57 per boe (nine months: $18.15) in Q3 of FY2011

Meanwhile,

TAG sold light oil:

 

94,545 barrels (nine months: 209,130) in the quarter

at an average price of:

$113.11 per barrel

TAG sold gas:

92,112 boe (nine months: 105,659 boe)

at an average price of:

$4.02 per mcf

Topics: Financials, oil and gas production

TAG Oil CEO & Controller visit the field

Posted by Kris Clark on Feb 9, 2012 8:18:00 AM

On a recent trip to Taranaki New Zealand, TAG Oil CEO Garth Johnson and Controller Dan Brown snapped some photos for the blog. They were down under for meetings with the technical team and local community leaders, and of course, to experience the new developments at TAG's Cheal and Sidewinder oil and gas discovery areas first-hand. 

Ensign Rig set up to drill Cheal B7
The Ensign Rig getting set up to drill Cheal -B7, TAG's follow-up to the highly successful B5 well. Cheal-B5 had the most extensive pay interval ever recorded by a Cheal well, and the highest flow rate recorded from from a Mt. Messenger well.

Executive Assistant Dan Brown in front of B5
TAG Controller Dan Brown stands proudly in front of the Cheal-B5 wellhead. As announced December 5th, TAG perforated and flow tested 20 meters of continuous oil-and-gas pay in the Cheal-B5 well, in the 35 meters of net pay intercepted within the primary Mt. Messenger Formation. Today it’s still going strong. 

CEO Garth Johnson and Lead Engineer Jack Doyle
Lead engineer Jack Doyle and CEO Garth Johnson, in front of the Cheal-C2 discovery well. This important step-out well in TAG's C-block discovery area flow tested ~14 million cubic feet per day (~2,333 BOE/day) on a 48/64" choke, with associated condensate production increasing during testing. Located about 3.5 km's NW of TAG's Cheal-B5 well, it significantly extends the known oil-and-gas saturation area within TAG’s Cheal permit. The success of Cheal-C2 also adds another high-impact target to TAG's prospect portfolio in the Mt. Messenger and Urenui formations.

New Plymouth's Sidewinder Facility
A shot of the loading arm at the Sidewinder Facility: used to fill the oil tank in the background with oil produced from TAG’s successful Sidewinder exploration wells drilled in late 2011.  

Topics: Mt. Messenger, Taranaki, Cheal-C site, Cheal Oil Field, oil and gas production, Sidewinder Discovery

TAG Oil Double Vision

Posted by Denise della Santina on Dec 30, 2011 1:29:00 PM

A tanker of TAG’s crude oil drives past the TAG offices, en route from the Omata Tank Farm on the outskirts of New Plymouth, where our oil gets delivered from the Cheal field. 

TAG Oil

Topics: Taranaki, New Zealand, oil and gas production

Putting the Sidewinder Oil and Gas Facility through its paces

Posted by Denise della Santina on Oct 3, 2011 1:49:00 PM

In preparation for putting TAG’s Sidewinder Production Facility into operation, it’s getting put through its paces with final review and testing. It was a gray day in Taranaki but the “views” looked good to us.

Sidewinder Plant
An overview of the Sidewinder Plant from the north.
Sidewinder-1 wellhead
Sidewinder-1 wellhead with a tie-in to the Plant. The pipe comes out of wellhead, into the cellar, then heads underground about 20m to the plant site.
 
horizontal hydrocarbon tank
Our horizontal hydrocarbon tank receives free oil and stripped condensate from the gas stream, holding approximately 400 bbls that’s trucked out for sales.
 
Separator manifold system
The separator manifold system – she’s a thing of beauty – allows us to direct specific wells to either of our two inlet separators.
 
inlet-to-gas chromatograph
Somewhat less slick looking but no less important, this is our inlet-to-gas chromatograph.
 
Inlet Separator 1
Here are the guys running a final test on Inlet Separator #1. It’s looking good.
 
Inlet Separator 2
This is the backside of Inlet Separator #2.
 
TAG Oil's Drilling and Completion Manager Jack Doyle
TAG's Drilling and Completion Manager Jack Doyle inspects the meter skid piping.
 
low temperature knock-out skid
The low temperature knock-out skid lowers gas temperature to -2C, which causes all the entrained condensate to condense and fall out for sales. That insures we’re shipping dry gas.
 
TAG Oil's Facility Manager James Watchorn
TAG's Facility Manager James Watchorn inspects the J/T valve on the low temperature separator skid. Hey James, how about a smile for the camera?
 
Heat-to-heat transfer units
Heat-to-heat transfer units that warm the gas back up after we cool it to squeeze the condensate out. Gas must be warmed up before entering the pipeline to avoid hydrate freezing in the line.
 
James inspects the low temperature separator
James inspects the low temperature separator.
 
Coriolis meters, U-meters
These are the Coriolis meters (U-meters) that actually measure the out-flowing gas to sales.
 
Vector's gas chromatograph
This is Vector's gas chromatograph at our site. They maintain this piece of equipment to insure TAG is shipping "Spec Gas" into their pipeline.
 
meter skid
This is the meter skid - the cash register. It measures out-flowing gas with one last condensate stabilization tower to wring out the last bit of condensate that might be in the gas before TAG Oil ships it.
last check before shipping the gas
Last check before shipping gas: fill the pipeline up with water, pressure it up and make sure there are no leaks. There weren't!

Topics: pipeline, Sidewinder Production Facility, oil and gas production

TAG Oil's tanker trucks head out in New Zealand.

Posted by Denise della Santina on Aug 12, 2011 7:14:00 AM
Our new fleet of TAG Oil petroleum transport trucks
We're pretty chuffed with our new fleet of TAG Oil petroleum transport trucks... what more is there to say?
Loading up at Cheal, with a rare valley snow behind.
Loading up at Cheal, with a rare valley snow behind.

Topics: Cheal Production Facility, oil and gas production

A gas tie-in primer from TAG Oil COO Drew Cadenhead P.Geol.

Posted by Denise della Santina on Aug 10, 2011 6:14:00 PM

LTS Skid

LTS Skid: This is the guts of our process. The LTS skid is where we send our high pressure rich gas and it flows through a JT (Joules Thomson) valve. Through this JT valve there is a significant pressure drop, and in turn the temperature drops as well. The temperature drop causes liquids entrained in the gas phase to drop out. These liquids, once dropped out, remain stable in liquid form and are shipped to our tanks.
 

Gas-to-gas exchangers

Gas-to-Gas Exchangers: The gas-to-gas exchangers on the skid help with the JT effect, where the two gas streams flow past each other in separate tube bundles.
 

Gas Export

Gas Export: This is the cash register. We have a gas coalescer vessel on the skid to ensure we don’t flow any debris or liquids through our Coriolis meters. All that’s left then is gas, and the Coriolis meters measure the flow volumes that TAG Oil gets paid on.
 

Vector Hot Tap

Vector Hot Tap: Not much to look at, this is the entrance point for TAG Oil gas into the Vector system and then onto sales. Vector can’t take a transmission line out of service for a tie in, so the hot tap is a high pressure, live tie in. TAG’s tie in work is being done with large amounts of Vector gas flowing through the line at high pressure.

Topics: Sidewinder Production Facility, oil and gas production

TAG’s production capability soars.

Posted by Denise della Santina on Aug 5, 2011 2:26:00 PM

During the 2011 fiscal year TAG's production rate averaged 413 barrels of oil equivalent (BOE) a day. Current production is now at approximately 950 BOE a day with a ramp-up of more than 5,000 BOE per day as TAG brings "behind-pipe" production online over the coming months.

Now that's what I call a serious production growth curve. This kind of growth doesn’t happen very often to oil companies, but it does happen once an awhile and for TAG, this is our time. Really amazing when you consider we've just begun our exploration cycle in earnest.

Taranaki production chart 

Once the new Sidewinder production facilities and the Cheal facility upgrade are completed we can get the new babies into full-time production and start hitting these numbers.

Topics: oil and gas production