VANCOUVER, BC, May 16, 2024
/CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) (FSE: T0P)
("TAG Oil" or the "Company") is pleased to announce
initial production test results on its BED4-T100 ("T100")
horizontal well, which tested at 800 barrels of oil per day
("BOPD"). The T100 well has demonstrated encouraging results
following a multi-stage hydraulic fracture stimulation targeting
the Abu-Roash "F" ("ARF") tight carbonate reservoir in the
Badr Oil Field ("BED-1") in the Western Desert of
Egypt.
Top of FormDuring the clean-up phase post-stimulation, the T100
well flowed at rates exceeding 1,000 barrels of fluid per day. By
the conclusion of the production test, the water-cut had decreased
to below 30%, indicating favorable reservoir characteristics and
effective well stimulation techniques. During flowback, the
oil production rates ranged between 400 and 800 BOPD as the well
unloaded. The well will continue to be unloaded under natural
flow for another two to three weeks until an artificial lift system
and surface facilities are installed. The well has recovered
approximately 23% of the frac load water and has produced over
4,500 barrels of oil to date.
Mr. Toby Pierce, TAG Oil's Chief
Executive Officer, commented "We are pleased with the performance
of our first well in the ARF resource play despite encountering
drilling challenges resulting in a shorter lateral section of 308
meters. Looking ahead, TAG Oil plans to drill horizontal wells with
lateral lengths of up to 1,000 meters, accompanied by three times
the fracture stimulation stages. This longer lateral approach lays
the groundwork for scaling production growth. Success of the T100
well is an important step to unlock the potential of this
significant resource play and planning is underway to develop the
500 million barrels of oil in place in the ARF."
A further well production update will be provided in due course
and will also detail plans for tie-in and facilities configuration
after stabilized production volumes have been established.
Conference Call
TAG Oil will be hosting a live conference call
on Friday, May 17, 2024,
at 7:00 AM PST / 10:00 AM EST to discuss this press
release. Interested parties will be able to submit questions in
advance and access the conference call via live teleconference in
listen-only mode by dialling:
- Canada/USA Toll Free: 1-844-763-8274; or
- International Toll: +1-647-484-8814.
Callers should dial in 5 to 10 minutes prior to the scheduled
start time on May 17, 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.
Website: http://www.tagoil.com/
LinkedIn: https://www.linkedin.com/company/tag-oil-ltd
X: https://twitter.com/tagoilltd
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 press 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.