VANCOUVER,
BC, March 30, 2023 /CNW/ - TAG Oil Ltd.
(TSXV: TAO) (OTCQX: TAOIF) ("TAG Oil" or the
"Company") is pleased to report that re-entry and
installation of the completion string at the BED 1-7 well has been
successfully completed.
The re-entry operation included installation of a
new well-head assembly, removal of the old tubing string and dual
packer assembly, isolation of previously perforated upper reservoir
layers in the Abu-Roash formation and cleaning the well down to
base depth at approximately 3,250 m.
After conditioning the wellbore, a new completion string was
installed in the open-hole section of the well across the Abu-Roash
"F" ("ARF") formation in preparation for hydraulic fracture
stimulation. Indications of reservoir pressure and oil content were
evident during completion activities with samples of ARF oil
recovered to surface and high pressures in the formation identified
to be close to original reservoir pressures.
The next steps on BED 1-7 include perforation and
diagnostic fracture injectivity testing ("DFIT") of the ARF
formation to identify natural fracture matrix characteristics
through pressure build-up and leak-off profiles during the DFIT.
This will be followed by evaluating the potential of the ARF in the
vertical completion through hydraulic fracturing, flow-back and
stabilized production performance. The fracture stimulation will be
one of the largest pumped in Egypt; specifically, a water-based system with
greater than 100 tons of proppant and 4,000 barrels of water
injected at high pressures and pump rates.
The Company currently expects the remaining work
on BED 1-7 to be completed by mid-April and to release the well's
initial daily production data by the end of April.
Planning for the first horizontal well ("T100")
is currently under-way with the site identified and lease build
commencement scheduled for April. Work has progressed to secure a
suitable drilling rig for the one well program in 2023, with
updated spud now projected in the summer of 2023 to allow
sufficient time to assess and incorporate performance from BED 1-7
and on-going 3D seismic review and geo-mechanical studies into the
T100 new drill design.
TAG Oil anticipates completion of the T100 in Q3
2023 and bringing the well on stabilized production in Q4 2023.
Toby Pierce, TAG
Oil's CEO commented, "While the re-entry and completion operation
has taken longer than forecast due to the procedural steps
necessary for contracting of the various services in Egypt, the project remains on budget and has
also provided valuable information required for planning our first
horizontal well. I would like to thank our team, our Egyptian
partners, and EGPC for their hard work to get us to this
point."
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
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-update-301785825.html
SOURCE TAG Oil Ltd.