PRTODAY / NewswireToday Free press release distribution service network

More news: Energy
Written by / Agency / Source: TAG Oil Ltd

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

TAG Oil Announces an Additional $66 Million Capital Expenditure in New Zealand Targeting Reserve and Significant Production Growth - TAG Oil Ltd (TSX: TAO) and (OTCQX: TAOIF),announces that the Company is initiating a $66 million capital expenditure program within the 100%-controlled Cheal and Sidewinder fields in the Taranaki Basin, New Zealand - TagOil.com
TAG Oil Announces an Additional $66 Million Capital Expenditure in New Zealand Targeting Reserve and Significant Production Growth

 

NewswireToday - /newswire/ - Vancouver, British Columbia, Canada, 2012/03/06 - TAG Oil Ltd (TSX: TAO) and (OTCQX: TAOIF),announces that the Company is initiating a $66 million capital expenditure program within the 100%-controlled Cheal and Sidewinder fields in the Taranaki Basin, New Zealand - TagOil.com. TSE: TAO

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Energy Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

This program consists of continued high-impact exploration and development drilling targeting the shallow (~2000m) oil prone zones, deeper drilling (~4000m) targeting large liquids-rich gas prospects and various workover operations to existing wells. In addition, TAG will also expand the Company's 100%-owned production infrastructure in order to bring additional production on-stream arising from new discoveries and production that currently sits behind pipe. This capital expenditure program will be funded from existing working capital and revenues from current oil and gas production.

Ongoing Cheal and Sidewinder Field Drilling and Secondary Recovery Plans
TAG's shallow drilling and workover program will focus on building proved and probable reserves, increasing net present value of reserves, increasing recovery factors and increasing daily production. The drilling plan continues to build upon TAG's highly successful exploration, appraisal and development program at both the Cheal and Sidewinder oil and gas fields. In addition, TAG's program also includes workovers to a number of existing wells to perforate previously bypassed oil pay intersected within the Urenui Formation and to initiate Cheal's first waterflood recovery program.

Deep Drilling Targets Significant Liquids-Rich Gas Prospects
Using TAG's proprietary 3D-seismic data, the Company has identified two deep liquids-rich gas plays with undiscovered resource potential of approximately 500 billion cubic feet of gas and approximately 20 million barrels of associated condensates:

TAG intends to drill one well targeting the Hellfire prospect in the latter part of 2012. The Hellfire prospect is approximately 10 square kilometers in size, and is located within TAG's Sidewinder field permit. Identified clearly on TAG's seismic, Hellfire is a considerable structural high in the Kapuni Formation, where numerous large fields have been discovered in the area. Hellfire lies on a broad regional trend that runs directly beneath TAG's new Sidewinder Production Facility.

TAG's Cardiff prospect is another large prospect of similar size to Hellfire, also in the Kapuni Formation, which is offsetting New Zealand's landmark Kapuni gas and condensate field discovery operated by Shell Todd Oil Services. TAG intends to re-enter the Cardiff-2A well, where gas and condensates were previously flow tested from a vertical well for an extended period. The new horizontal whipstock section will utilize the top hole section of the historical Cardiff wellbore, and will provide hundreds of meters of potential pay zone penetration versus the approximately 20 meters of vertical gas and condensate pay in the original well.

TAG's Infrastructure Plans
TAG's recent drilling of 14 successful wells in a row, combined with an ongoing Taranaki drilling program, has necessitated the immediate expansion of infrastructure at Cheal as follows:

• Tripling oil lifting capacity;
• Tripling gas compression capacity;
• Building a gas plant at Cheal capable of stripping LPG and liquid hydrocarbons from Cheal gas;
• Building the Cheal-C site oil battery to establish permanent production from recent Cheal-C discoveries, as well as allow for future development;
• Adding new pipelines to tie the Cheal-C site to the Cheal-A site and add a new 6,000 meter pipeline from Cheal to New Zealand's open access gas transmission line to maximize marketability of TAG's gas production;
• Establishing TAG as a third-party gas processor in Taranaki.

TAG Oil CEO, Garth Johnson commented,"TAG's substantial growth over the past year has prompted this new capital expenditure program, which is the largest in the history of our company. As one of New Zealand's most prominent oil companies, I'm very excited to enter this next phase of growth and increasing our contributions to the local economy. Our excellent drilling success has surpassed our infrastructure capabilities and the investment into expanding our infrastructure will allow us to bring all of our current production on stream, as well as provide commercialization of all future discoveries without delay."

About TAG Oil Ltd
TAG Oil Ltd (tagoil.com)is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. With 100% control over all its core assets, including oil and gas production infrastructure, TAG is anticipating substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact exploration prospects identified across more than 1,300 sections of land in the onshore Taranaki and East Coast Basins of New Zealand's North Island.

In the East Coast Basin, TAG has entered into a farm-out agreement with Apache Corp to explore and potentially develop the major unconventional resource potential estimated in the tight oil source-rock formations that are widespread over the Company's acreage. These oil-rich and naturally fractured formations have many similarities to North America's Bakken source-rock formation in the successful Williston Basin.

"BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Important Information:
It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate.

The term "undiscovered resources" is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically viable or technically feasible to produce.

Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. TAG's future success in exploiting and increasing its current reserve base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that TAG's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if TAG encounters unforeseen geological conditions. TAG is subject to uncertainties related to the proximity of any reserves that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such reserves may be found. Adverse climatic conditions at such properties may also hinder TAG's ability to carry on exploration or production activities continuously throughout any given year.

The significant positive factors that are relevant to the resource estimate are:
• proven production in close proximity;
• proven commercial quality reservoirs in close proximity; and
• oil and gas shows while drilling wells nearby.

The significant negative factors that are relevant to the resource estimate are:
• tectonically complex geology could compromise seal potential; and
• seismic attribute mapping in the two deep liquids-rich gas plays can be indicative but not certain in identifying proven resource

Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of TAG. Such statements can generally, but not always, identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

All estimates and statements that describe the Company's objectives, goals, or future plans relating to operations in the Taranaki and East Coast Basins are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary materially from the information provided in this release, and there is no representation by TAG that the actual results realized in the future will be the same in whole or in part as those presented herein.

Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG's most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG's SEDAR profile at sedar.com/.

TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors change.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Energy Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: TAG Oil Ltd

 
 

Availability: All Regions (Including Int'l)

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+] / [Company listed above is a registered member of our network. Content made possible by PRZOOM / PRTODAY indexing services]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Energy articles,
CATCH Visitors via Your Competitors Announcements!


TAG Oil Announces an Additional $66 Million Capital Expenditure in New Zealand Targeting Reserve and Significant Production Growth

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

TAG Oil Ltd |
Publisher Contact: Dan Brown / Garth Johnson - TagOil.com 
604-682-6496 info[.]tagoil.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any TAG Oil Ltd securities in any jurisdiction including any other companies listed or named in this release.

Energy via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From TAG Oil Ltd / Company Profile


Read Energy Most Recent Related Newswires:

ENGIE and Statoil Agree on the Renegotiation of Their Long-term Gas Supply Contracts
ENGIE and AES Andres Leverage Core Strengths to Provide Reliable and Competitive LNG Supply in the Caribbean
Power Costs, Inc. (PCI) and GE Power Collaborate to Link Energy Operations with Energy Trading for End-to-End Machine to Market Software Solutions
GE Oil & Gas Signs Agreement with TAG GmbH to Install New Tuning Maintenance (TUMAS) Software on Entire Fleet of Gas Turbines
ENGIE Announces Two New Major Collaborations to Foster New Innovative Green Gas Production Methods Across Europe
Enel Inaugurates Apiacás Hydropower Complex in Brazil
Steam and Gas Turbine Manufacturers Realign Strategies to Harness Growth Opportunities within Clean Power Generation
Enel Starts Construction of Peru’s Largest Solar PV Plant
GE and Maersk Drilling to Pilot Marine Digital Transformation
SolarWinds to Join the Discussion on Interoperable IT Management for Defense Forces at AFCEA’s TechNet Asia-Pacific 2016
BP and GE Launch New Offshore Digital Technology with Plans to Deploy Globally
GE Digital Acquires ServiceMax to Extend Predix and Analytics Across Field Service Processes
GE Digital Launches Collaborative App Development Program to Expand Digital Industrial Ecosystem
Voith Awarded A Prestigious Automation Contract for Two Norwegian Hydropower Plants
Joint Wind Farm Pilot Project by ENGIE, EDP Renewables, La Caisse Des Dépôts, Eiffage/Principle Power, GE Selected from Call for Floating Wind Turbine

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  BizJobs.com

Visit  JobsWare.com





 
  ©2016 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)