TAG Takes Stake in Three Taranaki Permits
TAG Oil says that target depth in the Arakamu-1 (formerly known as the Eltham-1) well has been reached. The well is located in New Zealand's Taranaki Basin on the North Island. "Although good quality oil and gas shows were recorded in the wellbore, no significant reservoir zones were encountered. The well, therefore, has been plugged and abandoned" said Mr. Drew Cadenhead, CEO. "We are encouraged by the high quality oil shows while drilling, we know we're in a good hydrocarbon area and believe that thicker sandstones in this area will prove successful."
In addition Mr. Cadenhead announced that TAG Oil has signed Agreements (Deeds of Assignment and Assumption) with Denver-based companies Bridge Petroleum and Westech Energy, and Australian-based company ROC Oil to assume 100% of each of their working interests in three separate onshore Taranaki Permits. The agreements were signed in exchange for granting a Gross Over- Riding Royalty position to each company in the respective Permits.
Working Interests will be:
PEP 38745: 66.6% TAG is operator
PEP 38732: 100% TAG is operator
PEP 38767: 100% TAG is operator
Gross acreage covered under the agreements total 25,219-acres (net 20,974- acres). This transaction is subject to New Zealand Government approval. Approval of this transaction will increase TAG's holdings in New Zealand to a total of 4,063,706 gross acres (1,515,305 net).
Commenting on the agreements, Mr. Cadenhead noted, "Following on the heels of our SuppleJack discovery, we are pleased to continue to build our land base within the core of our focus areas."
TAG Oil is taking over as operator of all three permits, controlling the pace of operations and assuming all technical work within the permits. This acreage is situated very close to and/or adjoining the existing TAG land base, and gives the company more acreage offsetting new discoveries like SuppleJack.
TAG Oil Ltd. is an independent Canadian oil and gas exploration company with a well-balanced portfolio of world-class assets in and around the Canterbury and Taranaki basins of New Zealand. This regional focus supports the Company's mandate to explore in countries with low political risk and low government taxation, through the establishment of a portfolio of both high risk/high reward exploration projects and low risk/moderate reward acreage in producing basins. With exploration permits totaling 4,052,891 gross acres (net 1,500,330) TAG Oil is one of the largest holders of prospective acreage in New Zealand.
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