TAG Flows Rates of 8.8 MMcf/d at Sidewinder-2

TAG Oil reported that a 4-Point Isochronal flow test was completed over the main discovery zone in the Sidewinder-2 discovery well, which achieved stabilized flow rates of 8.8 million cubic feet per day (~1467 BOE per day) with less than a 25% drawdown.

The results from Sidewinder-2 further strengthen the already robust project economics, with anticipated full-time commercial production commencing upon completion of the new Sidewinder production facilities in a few months time. The Sidewinder-2 well is the fourth Sidewinder well that has been flow tested, all of which have achieved excellent flow rates, as summarized below:

Sidewinder Discovery Flow Test Results

Sidewinder Well Gas Flow Rate (MMcfpd) BOE Flow Rate (boepd) Final Drawdown Rate Net O&G Encountered
Sidewinder-1 7.40 1,233 28% 14 meters
Sidewinder-2 8.80 1,467 25% 47 meters
Sidewinder-3 7.21 1,202 40% 15.4 meters
Sidewinder-4 6.98 1,163 25% 19 meters
Totals 30.39 MMcfpd 5,065 Boepd    

 The Sidewinder-2 exploration well was drilled to a depth of 1,597 meters (5,238 feet), intersecting the main Sidewinder discovery zone, as well as four other separate oil-and-gas charged zones of interest totaling 47 meters (157 feet) of net pay. The interpreted pay zones are primarily within the Miocene-aged Mt. Messenger Formation; however oil shows were also encountered in the shallower Urenui Formation.

The Sidewinder oil and gas discoveries are located in TAG Oil's Petroleum Exploration Permit 38748 (TAG 100%) in the Taranaki Basin, New Zealand, with further exploration drilling in the lightly-explored area scheduled to recommence in September 2011. TAG will continue to target the widespread high-impact prospects identified in the Mt. Messenger Formation.