VANCOUVER, BC, May 9, 2023
/CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) ("TAG Oil" or the "Company") is pleased
to announce the successful re-entry of the vertical well, BED 1-7,
at the Badr Oil Field ("BED-1") in the Western Desert, Egypt. The Company perforated the Abu Roash
"F" formation ("ARF Formation") and conducted a Diagnostic Fracture
Injectivity Test (DFIT). The reservoir was further fracture
stimulated with a large 110 tons sand treatment and pump schedule
with positive response confirming reservoir models and projected
performance.
On flowback, the well unloaded to surface under natural flow and
cleaned up approximately 40% of the injected fracture fluid with
significant presence of 230 API oil. Net cumulative
oil produced during the short flowback was in excess of 500
barrels, which was connected to a flow-line to the BED-1 field's
production facilities and onward into sales pipeline.
The well was shut-in to remove the frac string, install 3.5"
production tubing string and down-hole Electric Submersible Pump
(ESP) to achieve steady production at stabilized oil rates. The
well is expected to be on production within the next few days and
the Company expects to announce 30-day rates from the well in mid
June.
Data collected from the well along with geomechanical and 3D
seismic review has enhanced our horizontal well design. Plans are
underway to secure a drilling rig to drill the first horizontal
well designed with a multi-stage fracture stimulation. All
necessary permits have been secured and site construction is
underway. The well is expected to spud next month.
Toby Pierce, CEO of TAG Oil,
commented, "This activity is the first step to establish oil
production from the ARF Formation, an oil rich source rock that
covers a significant portion of the 107 Sq. Km. BED-1
concession. Production results confirms the economic
feasibility of this important resource play in the Western Desert
of Egypt."
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.
This press release includes cumulative production rates for a
certain well over short period of time. Short term production rates
are preliminary, subject to a high degree of predictive
uncertainty, and not determinative of the rates at which those or
other wells will continue to produce and thereafter decline. Short
term test rates are not necessarily indicative of long-term well or
reservoir performance or of ultimate recovery. Production over a
longer period will experience natural declines, which can be high
and may not be consistent over a longer period. Actual results will
differ from those realized during an initial production period and
the differences may be material.
References to "oil" in this press release include crude oil
and field condensate.
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SOURCE TAG Oil Ltd.