TAG Oil Says Gas Flows at Radnor-1a Sub-Economic
TAG Oil reports that the Radnor-1a well has been perforated over the McKee Sandstone interval from 4625-4286m measured depth, with no water inflowing into the well bore from the under bearing sands of the Kapuni Formation. Initial inflow rates of gas are considered sub-economic at this time and the Parker Rig 188 has been released.
Downhole gauges are presently being run into the well bore to determine if the low gas rates measured are due to formation damage or from low reservoir permeability. Once these gauges are analyzed, a decision will be made as to the plan going forward on the permit.
The Radnor-1A exploration well is located in PMP 38157 in New Zealand.
Participants in the sidetrack operation are the TAG Oil (33.33%) and Bridge Petroleum Limited (33.33%) with TAG assuming, on a sole-risk basis under the terms of the joint operating agreement, another 33.33% interest in the well. Under the sole-risk provisions of the JOA, TAG is entitled to recover 1500% of the costs associated with the sole-risk interest prior to any revenue reverting back to the joint venture partner that did not participate in the operation.
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