Tag Reports NZ Duster

Tag Oil Ltd. said that its Mangamingi-1 well in PEP 38758 in the hills of eastern Taranaki, New Zealand, has been perforated from 1776.5-1786m (5828-5860 feet) where the well flowed natural gas to flare as well as some formation water. The company deemed the gas flow rates to be uneconomical given the remote location of this wildcat well and have now initiated an abandonment program. Follow up technical work is underway to high-grade areas of potential oil accumulation in this newly identified hydrocarbon fairway.

At the Cheal Oil Field located in PMP 38156 (TAG 30.5%), Cheal B-2 is currently under production test and is averaging approximately 150 bbls/d + 100mcf/d of gas, gross. Cheal B-2 is the third Cheal B well to be production tested and follows Cheal B-3 which tested at rates of 450bbls/d and Cheal B-1 that tested at rates of 133bbls/d + 225mcf/d of gas. Construction on the permanent production facilities continues on schedule for completion by mid-year.

Tag Oil Ltd. is an independent Canadian oil and gas exploration and production company with a well-balanced portfolio of assets in and around the Canterbury, Taranaki and East Coast basins of New Zealand. With exploration permits totaling 1,704,918 gross acres (net 1,076,848) Tag Oil is one of the largest holders of prospective acreage in New Zealand.