Tag plans Taranaki spending spree

Big plans: Tag Oil is planning to spend C$66 million to boost output at its onshore fields in New Zealand’s onshore Taranaki basin

RUSSELL SEARANCKE

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Josh Lewis

 07 March 2012 03:02 GMT

Canadian company Tag Oil has announced a C$66 million (US$66 million) capital expenditure program to boost reserves and production at its Cheal and Sidewinder fields in New Zealand’s onshore Taranaki basin.

Tag said the money would be spent to continue exploration and development drilling on the fields, targeting shallow oil prone zones at about 2000 metres and deeper liquids-rich gas prospects at about 4000 metres.

It also plans to carry out workover operations to existing wells and expand production infrastructure to allow additional output from new discoveries to be brought onstream.

“Tag's substantial growth over the past year has prompted this new capital expenditure program, which is the largest in the history of our company,” chief executive Garth Johnson said.

“Our excellent drilling success has…

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