TAG Oil Says Cheal Facility Nearing Completion



TAG Oil said that the Cheal Production Facility (TAG: 30.5%) is nearing completion, and pre-commissioning operations are now concurrently underway with final construction activities.

The plant is scheduled for fulltime production start-up by mid-September. Storage and marketing concerns previously reported have now been addressed and a staged facility start-up is scheduled to begin in late August.

Initial oil production is forecast to ramp up from 350-400 bbls/day (107-122 bbls/day net to TAG) currently producing through temporary facilities to 800 bbls/day (244 bbls/day net to TAG) once the Cheal Production Facility is fully operational. Further scheduled development drilling from the A-Site in the first quarter of 2008 is anticipated to increase production to 1400-1500 bbls/day (427-458 bbls/day net to TAG).

TAG Oil Ltd. is an independent Canadian oil and gas exploration and production company with a well-balanced portfolio of producing and exploration assets totaling 560,016 gross acres (net 203,334) in and around the Taranaki and East Coast Basins of New Zealand.

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