Tag Oil Ltd. spud an exploration well in its 100-percent owned Petroleum Exploration Permit 38349 in the East Coast Basin of New Zealand. The Ngapaeruru-1 exploration well is targeting the Waipawa black shale and Whangai source rock formations at a depth of 5,906 feet. The well is designed to test the unconventional discovery potential in this portion of the basin.
"Our strategy has always been to build reserves, production infrastructure, and cash flow from our lower risk conventional assets, leveraging these successes to intelligently pursue high-impact opportunities such as the East Coast Basin," said Garth Johnson, Tag Oil's CEO, in a released statement.
"With TAG's continued success in the Taranaki Basin - and our successful commercialization of these discoveries - we continue to deliver on the first part of this plan. Drilling Ngapaeruru-1 is another step in delivering on our business plan: pursuing higher risk, higher impact exploration wells from a very strong financial position."
Tag Oil has conducted extensive geotechnical work on the company's East Coast acreage, including proprietary 2D and 3D seismic that have confirmed that the source rock parameters in the play compare favorably to commercial unconventional plays throughout the world. The company said 528 million proven Taranaki oil reserves and6.9 trillion cubic feet of proven gas reserves have been discovered to date.
The company is using Webster Drilling's Nova No. 1 drilling rig which was mobilized from the company's Sidewinder oil and gas field in the Taranaki Basin.
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