Securing Drilling Rig for BED-1 Field
VANCOUVER, BC, June 19,
2023 /CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) ("TAG Oil" or the "Company") is pleased
to provide the following operations update at the BED-1 Field in
the Western Desert, Egypt:
BED 1-7 Well Production
Since initial flowback of the BED 1-7 well on April 23, 2023, the well started by unloading to
surface completion fluid from the fracture stimulation and
formation oil under natural flow; the Company temporarily shut-in
the well to install production tubing and down-hole Electric
Submersible Pump ("ESP"). The BED 1-7 well started production on
May 19, 2023, from the Abu-Roash "F"
("ARF") reservoir with the ESP pump at rates of 150 to 200 barrels
of fluid per day and continued to unload remaining fracture fluid
with gradual increase of formation oil over the first week. Pump
speeds and surface choke adjustments were made to achieve a
stabilized rate of production. Over the past two weeks, down-hole
pump intake pressure and production stabilized at an average rate
of 140 barrels of oil per day with about five (5) percent water
content at a constant ESP pump speed and wellhead choke of 10/64".
The Company intends to maintain the same pump speed and choke size
to monitor the well's performance for the next 30 to 60 days.
Cumulative oil production from the well to date is over 4,000
barrels of 23-degree API Oil.
The performance of the BED 1-7 vertical well test has achieved
the Company's objectives for the well, including the Diagnostic
Fracture Injection Test (DFIT) pressure leak-off for indications of
reservoir parameters, fluid samples from the ARF, successful
completion of a large single-stage fracture treatment on the ARF,
and inflow performance testing of the stimulated well. The Company
also learned a significant amount about the availability, quality
and delivery of materials and services in the Western Desert of
Egypt, which will be important for
implementation of the new horizontal well and working with our
local partners to ensure access for equipment and personnel in
field operations and establishing timeline for future operations in
the BED-1 Field.
TAG Oil T100 Horizontal
Well
The Company was successful in securing a suitable drilling rig
for the first horizontal well, BED4-T100 ("T100"), designed with a
multi-stage fracture stimulation completion of the ARF formation.
The rig will be mobilized from its current location in the Western
Desert by mid-July and the well is scheduled to commence drilling
shortly after. Detailed drilling and completion schedule plans will
be provided at that time.
The well design includes a vertical pilot assessment well for
potential coring, open-hole logging, formation imaging, pressure
measurement and fluid sampling, followed by cement plug-back of
lower vertical pilot hole and whip-stock drilling of build and
lateral horizontal sections of the T100 new well in the ARF
reservoir. Information will be collected during the drilling of the
well including mud logging and drill cuttings to assess the
reservoir quality across the lateral, which will be used in
conjunction with the work completed on the geo-mechanical
properties and 3D seismic interpretation in the area to design the
well completion.
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.