Tag Oil Discovers Oil in Taranaki Basin

Tag Oil reported a new oil discovery in New Zealand's Taranaki Basin with the Sidewinder-1 exploration well, located within TAG's 100%-controlled, 7,910 acre, Broadside exploration permit PEP 38748.

The Sidewinder-1 well was drilled to a total depth of 1,601m, and encountered 14 meters of net (22m gross) oil-bearing sandstones in the Mt. Messenger Formation. Electric logs indicate excellent reservoir qualities, with average porosities of 22.5% and oil saturations of 60%.

"We are extremely pleased to achieve oil pay in excess of what we had anticipated; these results also increase the likelihood of additional discoveries and the prospectivity of the Broadside permit," commented Garth Johnson, CEO of TAG Oil. "TAG will now proceed to complete the Sidewinder-1 well for production. We'll commence flow testing immediately after completing the fracture stimulation of the Cheal B-3 well, located in our 100%-owned Cheal Mining Permit."

The drill rig will now move to the Cheal Mining Permit to initiate drilling of the Cheal-BH-1 horizontal well. This well, with a total measured depth of 2,325m, including a 600m horizontal section, will be drilled into the proven producing area of the Cheal A block, and target the widespread turbidite fan deposits identified in the Mt. Messenger Formation. Cheal-BH-1 will be completed with a multi-stage fracture treatment along the horizontal section.