TAG Oil Blog

TAG Oil a Top Pick on Business News Network

Posted by Denise della Santina on Apr 29, 2012 4:53:00 PM


A nice bit of press at BNN (Business News Network) Canada, picking TAG Oil as a top stock pick recently. There's a short ad, but at about minute 1:23 you'll see TAG Oil selected as Robert McWhirter's (of Selective Asset Management) first Top Pick: http://ow.ly/azkxS

We'll forgive them for mis-classifying us as a Venezuelan company, since the rest of the profile is spot on.

Topics: East Coast Basin, unconventional oil, Financial coverage, Announcements, tight oil

Farmout agreement with Apache Corporation on the East Coast Basin

Posted by Denise della Santina on Sep 6, 2011 2:48:00 PM

This news is in a press release on our site, but it bears repeating in the blog: We've entered into a farmout agreement with Apache Corporation to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand. 

Apache has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG’s East Coast Basin exploration permits PEP 38348, PEP 38349 and PEP 50940 (“the Permits”). The Permits comprise in excess of one million prospective acres of onshore oil and gas opportunities located on the southeast portion of the North Island. TAG currently holds a 100% working interest in the properties.

Apache has agreed to pay for a portion of TAG’s direct costs incurred to date, as well as providing TAG a full carry on three phases of operations to a maximum agreed cost in each phase. If the agreed cost is exceeded in any phase, or if additional operations are conducted, Apache will pay a majority share of any drilling or seismic costs in the specified percentages set out in the Agreement.

Each phase of operations will include an aggressive program of both 2D / 3D seismic and drilling with Apache earning an increasing interest in the Permits as follows:  

Phase 1: Apache will earn a 50% interest in 5,120 acres of the Permits after operations are conducted and by committing to Phase 2.

Phase 2:  Apache will earn a 25% interest in the Permits after operations are conducted and by committing to Phase 3.

Phase 3: Apache will earn a 50% interest in the Permits after operations are conducted and by committing to Phase 4 operations.

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Subject to certain conditions, the planned exploration work program will be conducted over the next four years. Seismic operations will start in 2011 with drilling to commence in 2012.

Apache will be the Operator for all activities undertaken pursuant to the Agreement, excluding the initial four vertical wells of the work program that TAG will operate with Apache’s assistance.  Apache will spend up to $100 million upon completion of Phase 3 to earn a 50% interest in the Permits. At the end of Phase 3 operations TAG will remain as operator of the Permits.  If Apache commits to Phase 4 operations, all costs will then be shared equally between Apache and TAG going forward.

We're excited and honored to partner with Apache in the East Coast Basin to achieve a common goal of converting the potential of the Basin to proven reserves with integrity, respect and excellence in a safe and environmentally responsible manner. We are planning an aggressive exploration program with Apache with a starting date of September 2011 to initiate seismic acquisition with drilling to begin in early 2012.

Topics: East Coast Basin, unconventional oil, Announcements, tight oil

This rock could power the world: Time Magazine and TAG Oil.

Posted by Kris Clark on Jul 12, 2011 12:03:00 AM
Time Magazine article on oil and gas-rich shale

Okay so Time Magazine’s article isn’t about TAG Oil, but it could be. Because they’re talking about the vast amounts of oil and gas that’s being found in tight oil plays.

They’re finding major amounts of oil and so much natural gas in the United States, that it could potentially eliminate America’s reliance to foreign oil (for more info see http://www.chk.com/Independence/energy-independence.html). 

Unconventional tight oil is exactly what TAG is targeting a half a world away, in the East Coast Basin in New Zealand. There are actually two formations in the East Coast Basin and they are the “source rocks”  generating the high-quality oil (50 degree API) found in drilling and in the many oil seeps throughout the Basin.

Waipawa Black Shale
Oil-permeated Waipawa
source rock

The East Coast Basin’s Waipawa and Whangai formations are rich in total organic carbon content and have oil and gas maturity levels that compare to North America’s highly successful Bakken.

The East Coast Basin tight oil formations have measured primary porosities that are in the 22-30% range, favorably above what’s typically found in the Bakken.

Click here for an independent assessment of the major undiscovered resource potential in TAG’s East Coast Basin unconventional venture. 

Topics: East Coast Basin, unconventional oil, tight oil