TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to report progress of the Cheal-E-JV-6 well (Cheal-E6) and Cheal-E7 wells, located in New Zealand's Taranaki Basin where TAG Oil has extensive oil and gas operations. These new wells continue to demonstrate the prospectivity and the potential for further success in TAG's Cheal acreage which remains relatively lightly explored.
Cheal-E6 Well Testing Operations:
Over a period of eleven days the Cheal-E-JV-6 well (Cheal-E6) continues to naturally free flow under a 16/64 choke at stable rates. During the test period Cheal-E6 (TAG: 70%) produced an average of 325 boe/d (81% oil) for a total of 3,178 barrels of oil and 4,456 mscf of gas. The well will be shut-in for a planned pressure build-up test up for a period of three days and then will resume ongoing production into TAG's production facilities.
Cheal-E7 Drilling Operations:
TAG has completed drilling of the Cheal-E7 well (TAG: 100%) to a total depth of 1,921 meters (6,302 feet) and interpretations of electric logs indicate the well has intersected over 10.6 meters (34.78 feet) of net oil and gas bearing sands in the Mt. Messenger Formation, the main objective of the well. Cheal-E7 is being completed as a potential oil well with production testing to begin in early 2015 and if economic, will be immediately commercialized through TAG's 100%-owned production infrastructure.