TAG Oil Announces Oil Discovery at Cheal Step Out Well
12 July 2008 - 6:51AM
PR Newswire (US)
VANCOUVER, July 11 /PRNewswire-FirstCall/ -- Oil and gas producer
and explorer, TAG Oil Ltd. (TSX-V: TAO/OTCBB: TAGOF), announces the
success of the Cheal A7 step-out well at the Cheal oil field,
located in the onshore Taranaki Basin, New Zealand. The well has
been drilled, logged and both of the Mt. Messenger sandstone
reservoirs targeted are interpreted as oil saturated. "We are
pleased with the results of the Cheal A7 step-out well, the
electrical logs indicate good quality reservoir sands over both the
MM2 and MM3 zones. We look forward to increased production flowing
into the Cheal facility at a time of record high oil prices," said
Garth Johnson, Chief Executive Officer. The Cheal A7 well was
drilled to a total measured depth of 1848 meters and intercepted
approximately 7 meters of oil bearing sands within the Mt.
Messenger formation. The Cheal Joint Venture (TAG 30.5%) is in the
process of completing the well and preparing a temporary tie back
into the Cheal Production Facility to production test the well in
the near future. Mr. Johnson further commented "We also look
forward to incorporating the new data from both the Cheal A6 and A7
wells into our 3D seismic model. We're optimistic this newly
acquired data will help us define future exploration drilling
opportunities in the greater Cheal trend where TAG holds a 30.5%
interest in the 11,500-acre Cheal Exploration Permit." About TAG
Oil Ltd. 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. DATASOURCE: TAG Oil Ltd.
CONTACT: Garth Johnson, CEO, (604) 609-3350; Website:
http://www.tagoil.com/
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