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.
SOURCE TAG Oil Ltd.
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