TAG Oil has initiated a mid-year independent review of the reserves on its 30.5% interest in the Cheal Oil Pool, onshore Taranaki Basin, New Zealand.
The report will be completed by Sproule International Limited, a subsidiary of Sproule Associates Limited, one of the largest and most highly regarded geological, geophysical and petroleum engineering consulting companies in North America.
TAG Oil CEO, Garth Johnson, said, "Our last Cheal reserve report dated March 31, 2008 was completed just as the plant was being brought onto permanent production. The Joint Venture has since drilled three wells, has established more definitive operating costs and has adjusted the development plan to recognize drilling results, production trends, changing market conditions and lower oil prices.
"As a result of the combination of these factors the Company's management believes there has likely been a decrease in the net present value of the Cheal reserves since our last reserves report. Although TAG remains in a strong financial position, we want to keep our shareholders informed if there is a material difference."
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