VANCOUVER, BC, Jan. 3, 2024
/CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) ("TAG Oil" or the "Company") would like
to provide the following update on drilling progress of the
BED4-T100 ("T100") horizontal well in the Badr Oil Field
("BED-1") in the Western Desert of Egypt.
As reported in the November 15
update, drilling continued from the intermediate cased section of
the well and reached a measured depth of 3,312 meters in the
Abu-Roash "F" ("ARF") at hole angle of 90 degrees.
However, geo-mechanical hole stability concerns in the upper
section of the hole in the Abu-Roash "E" ("ARE"), an
over-pressured formation with layered carbonate and shale lithology
changes, was coupled with mechanical issues with the drilling rig
mud system. This provided challenges to condition the build section
of the hole past 3,200 meters to be able to run the casing liner,
and multiple attempts to drill out past this point and continue
into the ARF target reservoir were encumbered.
The Company elected to plug back this hole section, initiate
repairs of the drilling rig shale-shakers and tanks on the rig mud
system, and review drilling procedures to isolate the ARE zone of
the hole and landing the casing liner in the ARF carbonate
reservoir zone prior to proceeding with drilling the lateral.
Next steps include re-drilling from the intermediate cased
section of the T100 well at approximately 2,650 meters with an
oil-based mud system and adjusting the directional drilling
services and tools with the goal of drilling a smoother, stable
build section in the ARE and isolating it prior to drilling the ARF
lateral section.
As previously disclosed, the ARF target reservoir in the T100
vertical pilot well and in the initial lateral section encountered
very good oil shows with high hydrocarbon gas readings and good
indications of primary porosity. These drilling challenges are not
projected to impact the prospect of the ARF resource oil play.
Repairs on the drilling rig and planning for the next leg are
underway and completion of the drilling phase is projected to be
done next month. The drilling rig will then be released and a
rig-less well completion phase with fracture stimulation of the ARF
will start immediately after. TAG Oil will continue to provide
regular drilling updates, as necessary.
The Company will be hosting a live conference call
on Thursday, January 4,
2024, at 7:00 AM PST /
10:00 AM EST to discuss this
drilling update. Interested parties will be able to access the
conference call via live teleconference in listen-only mode by
dialling:
- Canada/USA Toll Free: 1-800-319-4610; or
- International Toll: +1-604-638-5340.
Callers should dial in 5 to 10 minutes prior to the scheduled
start time on January 4, 2024, at
7:00 AM PST / 10:00 AM EST.
A replay of the conference call will be available on demand
following the conclusion of the live event at
http://www.tagoil.com/. In addition, questions can be forwarded by
e-mail in advance of the conference call to
info@tagoil.com.
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.
References to "oil" in this press release include crude oil
and field condensate.
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SOURCE TAG Oil Ltd.