Canada’s Tag Oil has seen fresh flow test success at its prolific Cheal field in New Zealand’s Taranaki Basin.
The Vancouver-based player said the Cheal B7 discovery well had been flow tested and was naturally flowing at an average rate of more than 1100 barrels of light oil per day plus associated gas.
Cheal B7 is situated northeast of B5, the most recent discovery at the field. Drilled to a total depth of around 2100 metres, B7 encountered a total of 18 metres of high-quality oil-and-gas bearing sands within the targeted Urenui and Mt. Messenger Formations, the company said.
Chief executive Garth Johnson said the results from Cheal B7 made it fourteen hits in a row for the company at the field.
He added that the Cheal production facility was being upgraded to ensure it can handle production from all current and future wells.
The latest production takes Cheal’s total output rate over 4000 barrels of oil equivalent per day, 70% of which is light oil and which does not include ‘behind pipe’ production awaiting new infrastructure at the field, according to Tag.
Cheal-B6, Cheal-A9 and Cheal-A10 all encountered hydrocarbons and are currently in production testing.
Tag Oil owns a 100% interest in the Cheal oil and gas field, which is located in Petroleum Mining Permit 38156 in the Taranaki Basin.
A Toronto-listed explorer, its operations are focused exclusively in New Zealand.