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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