TAG Oil Provides Drilling Update
05 July 2008 - 7:37AM
PR Newswire (US)
VANCOUVER, July 4 /PRNewswire-FirstCall/ -- TAG Oil Ltd. (TSX-V:
TAO/ OTCBB: TAGOF), announces that the drilling of the Cheal A6
well reached a total depth of 1930 meters on June 26th, 2008. The
well intercepted an oil bearing MM3 Formation as planned at
approximately 1818 meters measured depth, but the net sand interval
was interpreted as thinner than prognosed and would be uneconomic
to complete. The Cheal Joint Venture (Austral Pacific Energy Ltd.
69.5% and TAG Oil Ltd. 30.5%) agreed to plug and abandon the MM3
zone in this well bore, set a whipstock plug at 1359 meters and
kick off a side track well to a targeted location approximately 150
meters to the south of the original A6 penetration. This location
was interpreted from the Brecon 3-D seismic data set to have
thicker net sands, although slightly closer to the regional
oil/water contact. Cheal A6ST was drilled to a total depth of 1936
meters on July 2nd, 2008 and intercepted the targeted MM3 sands as
prognosed, well above the regional oil/water contact. After
evaluation of all subsurface data the Joint Venture has agreed to
plug and abandon the A6ST well as a sub-commercial hydrocarbon
discovery. A new whipstock plug will be set in the wellbore and the
rig will now commence drilling the Cheal A7 well from the same
surface location. The Cheal A6 and A6ST wells were targeting a
separate lobe of sand from the main Cheal "A" Pool while Cheal A7
is a step-out well targeting an extension of the same pool
containing the successful Cheal A3 and A4 wells. Garth Johnson, TAG
Oil Chief Executive Officer said, "Although we are encouraged that
we encountered oil bearing sands in Cheal A6 and A6ST, we were
disappointed that net pay thicknesses in this separate lobe of sand
were materially thinner than the "A" Pool and that completion
operations were not justified. We look forward to better results at
Cheal A7 where we are targeting the same Mt. Messenger sand body as
the A3 and A4 wells." About TAG Oil TAG Oil Ltd. is a new oil and
gas producer in the Taranaki Basin, New Zealand. TAG is well
funded, debt free and is poised to grow through production,
development and exploration drilling on the Company's high-graded
Taranaki exploration acreage. 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 Oil. Actual results may
vary materially from the information provided in this release. As a
result there is no representation by TAG Oil that the actual
results realized in the future will be the same in whole or in part
as those presented herein. Actual results may differ materially
from the results predicted, and reported results should not be
considered as an indication of future performance. Factors that
could cause actual results to differ from those contained in the
forward-looking statements, are set forth in, but are not limited
to, filings that the Company and its independent evaluator have
made, including the Company's most recent reports in Canada under
National Instrument 51-102 and in the United States under Forms
20-F and 6K. The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of this release.
CONTACT: Garth Johnson, CEO, (604) 609-3350, Website:
http://www.tagoil.com/ DATASOURCE: TAG Oil Ltd. CONTACT: Garth
Johnson, CEO, (604) 609-3350, Website: http://www.tagoil.com/
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