Tag Oil plans to sink 13 exploration wells

Drill plans: Tag Oil makes 13-well programme for 2013

Canadian explorer Tag Oil has said it plans to drill thirteen exploration wells in New Zealand’s Taranaki and East Coast basins in the coming year.

Chief executive Garth Johnson said the drill plans were backed by increased revenues from the past two years after 21 consecutive well successes in the Taranaki Basin.

He said operating cash flow from current production of around 2000 barrels of oil equivalent (boe) per day would fund the $36 million estimated cost of drilling, completing and testing the 13 wells.|

The Vancouver-based, Toronto-listed outfit said the probes would be sunk on its Cheal and Sidewinder light oil fields and on newly awarded acreage from last month’s New Zealand licence round.

Tag Oil plans to continue to aim at Mt Messenger and Urenui formation targets, as well as deeper high-impact targets in the Kapuni formation using Ensign Drilling’s Deep Rig 31.

The first deep probe, provisionally slated for May, will target the Cardiff prospect where gas-rich condensates were discovered and tested within a 600-metre interval in the Kapuni Formation in 1992.

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