VANCOUVER, BC, Dec. 15,
2022 /CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) ("TAG Oil" or the "Company") is pleased
to provide an operations update as the Company initiates Phase 1 of
its strategic development program of the unconventional
Abu Roash "F" ("ARF") reservoir in
the Badr Oil Field ("BED-1") over the first half of 2023,
consisting of the following:
- First Well Re-Completion: TAG Oil has
chosen the BED 1-7 vertical well for its first re-completion and
evaluation operations in BED-1. The well had previously tested at a
peak rate of 418 barrels of 24ᵒ API oil and produced ~20,000
barrels of oil from the ARF during a one-year production period
before being suspended.
The first stage of operations will involve conditioning the
open-hole section of the well with a production liner,
re-completing the ARF and conducting a Diagnostic Fracture
Injection Test (DFIT) to provide information on the geo-mechanical
properties and imaging the natural fracture network in the ARF
reservoir. This will be followed with hydraulic fracture
stimulation to improve permeability and productivity, flow-back and
a production cycle to assess the potential of oil recovery from the
ARF. Services and equipment for these operations are being secured,
which TAG Oil has scheduled to be in place for operations to
commence in mid-January 2023. The
Company anticipates being able to provide well results in
March 2023.
- First Horizontal Well: The data that is
collected from BED 1-7 and incorporated into the modeling studies
will help facilitate plans for drilling the first horizontal ARF
well in BED-1. The Company has submitted the requisite drilling and
environmental permits for the first well and anticipates that a
drilling rig will be secured and ready to spud in the period of
May/June 2023.
The Company will be observing production performance of these
two wells and will likely plan to drill one more horizontal well in
Q4 2023 or early in 2024.
TAG Oil also announces the grant of 1,150,000 stock options that
are exercisable for a period of five years at a price of
C$0.70 per share to various staff
members and certain officers.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based
international oil and gas exploration company with a focus on
operations and opportunities in the Middle East and North Africa.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements and
Disclaimer
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.
All estimates and statements that describe the Company's operations
are forward-looking statements under applicable securities laws and
necessarily involve risks and uncertainties. Actual results may
vary materially from the information provided in this release, and
there is no representation by TAG Oil that the actual results
realized in the future will be the same in whole or in part as
those presented herein. TAG Oil undertakes no obligation, except as
otherwise required by law, to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors change.
Exploration for hydrocarbons is a speculative venture
necessarily involving substantial risk. The Company's future
success in exploiting and increasing its current resource base will
depend on its ability to develop its current properties and on its
ability to discover and acquire properties or prospects that are
capable of commercial production. However, there is no assurance
that the Company's future exploration and development efforts will
result in the discovery or development of additional commercial
accumulations of oil and natural gas. In addition, even if further
hydrocarbons are discovered, the costs of extracting and delivering
the hydrocarbons to market and variations in the market price may
render uneconomic any discovered deposit. Geological conditions are
variable and unpredictable. Even if production is commenced from a
well, the quantity of hydrocarbons produced inevitably will decline
over time, and production may be adversely affected or may have to
be terminated altogether if the Company encounters unforeseen
geological conditions. The Company is subject to uncertainties
related to the proximity of any resources that it may discover to
pipelines and processing facilities. It expects that its
operational costs will increase proportionally to the remoteness
of, and any restrictions on access to, the properties on which any
such resources may be found. Adverse climatic conditions at such
properties may also hinder the Company's ability to carry on
exploration or production activities continuously throughout any
given year.
View original
content:https://www.prnewswire.com/news-releases/tag-oil-provides-operations-updates-301704163.html
SOURCE TAG Oil Ltd.