VANCOUVER, June 6, 2011 /PRNewswire/ - TAG Oil Ltd.
(TSX-V: TAO) and (OTCQX: TAOIF) is
pleased to report that the recently drilled Cheal-C1
exploration well has now set production casing to total depth, in
order to production flow test the light oil potential identified in
both the Mt. Messenger (~1600m), and the deeper Moki (~2,200m)
formation targets. The Cheal-C1 well was drilled directionally from
the new "Cheal-C site" in TAG Oil's Petroleum Mining Permit 38156
(PMP 38156) in the Taranaki Basin, New
Zealand.
The Cheal-C1 well was drilled approximately 3.5 km to the
northwest of the existing Mt. Messenger producing wells, with
results extending the Mt. Messenger oil saturation area over a
considerably larger area than previously known. Over 15 meters of
net oil-and-gas bearing sandstones were intercepted in the Mt.
Messenger with good porosity and free oil encountered while
drilling through the zone.
The Mt. Messenger was the primary objective of the Cheal-C1 well
however it was deepened to a total depth of 2382 meters (7815
feet), to test the down-dip edge of a large closure within the
deeper Moki Formation. Strong oil and gas shows were encountered
within a 73-metre thick, high quality section of porous and
permeable sandstone. Any future wells directly targeting this Moki
Formation structure will be drilled in an updip position, which
could potentially intersect substantially more of the
hydrocarbon-charged Moki sandstones.
"We are very pleased to have extended the Mt. Messenger play
into the "C" block, and look forward to further exploiting this
oil-prone area." TAG Oil CEO Garth
Johnson commented. "We're also very optimistic about the
Moki Formation discovery potential, which is a prolific oil
producer in the offshore Maari oil field. However, very few wells
have targeted this formation onshore so we will need flow-test data
before any conclusions are reached in regards to its commercial
potential."
For further information on the Petroleum Mining Permit 38156 in
the Taranaki Basin, please visit TAG Oil's website.
(http://www.tagoil.com/operations.asp)
TAG Oil Ltd.
TAG Oil Ltd. (http://www.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 2,712 sections
of land in the onshore Taranaki and East Coast Basins of
New Zealand's North Island.
In the East Coast Basin, TAG Oil is pursuing the significant
unconventional resource potential estimated in the fractured shale
source-rock formations that are widespread over the Company's
acreage. These oil-rich, naturally fractured and thermally mature
source-rock formations have many similarities to North America's Bakken
Shale source-rock formation in the successful Williston
Basin.
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 Oil. These statements are
based on certain factors and assumptions including those related to
the exploration and development of TAG Oil's Cheal oil and gas
field and specifically the Cheal-C1 well located in the Taranaki
Basin of New Zealand. Actual
results may vary materially from the information provided in this
release. As a result, there is no representation by TAG Oil that
actual results realized in the future would be the same in whole or
in part as those presented herein. 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 51-101.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE TAG Oil Ltd.