TAG Oil Abandons Honeysuckle-1 Well

TAG Oil reports that the Honeysuckle-1 well in Taranaki, New Zealand has been plugged and abandoned.

TAG President and CEO Drew Cadenhead commented, "Although we're not satisfied with the results, Honeysuckle-1 has provided the joint venture team with data which will prove vital in our 2004 drilling campaign. We encountered 3 separate oil zones, including the primary P-1 zone, proving again that the Mt. Messenger formation is oil and gas prone. TAG's technical team is already pouring over the data and has drawn important conclusions that we'll put to use in our next well, MiroMiro-1."

In other news the New Zealand Government has announced a series of tax and royalty changes one of which substantially reduces royalties on gas sales from 5% down to 1%. TAG Oil CFO Garth Johnson commented, "New Zealand already had one of the best fiscal regimes in the world. These new amendments will impact our upcoming deep gas program even further and will increase our profit margins on new discoveries."