TAG OIL: SUCCESS AT CHEAL-E8 WELL IN NEW ZEALAND

May 26, 2017

TAG Oil announced the successful drilling and flow testing of the Cheal-E8 exploration well, which will now be tied-in to TAG Oil’s existing infrastructure as a permanent producer. The Cheal-E8 well was drilled on TAG Oil’s 70% working interest and operated Cheal East permit (PEP 54877) in the Taranaki Basin of New Zealand. The well was drilled and completed on time and on budget to a total measured depth of over 2,000 meters. The primary objective of Cheal-E8 was to test the potential of the Urenui formation, with the deeper Mt. Messenger formation as the secondary objective. Net pay of approximately 17 meters of Urenui sands and 4 meters of Mt. Messenger sands was recorded.
Following the completion of the Urenui zone, Cheal-E8 naturally free flowed oil and gas on choke at an average rate of 318 barrels of oil per day over a four and a half day test. No water production was observed during the test.
The Mt. Messenger formation is also estimated to be commercial, and will be completed in the future.
The Company’s next well will be Cheal-D1, which will also be drilled on the Cheal East permit. This is scheduled to spud in July 2017.
TAG Oil, Headquartered in Vancouver, is an established oil and gas operator in Australasia. The Company currently operates eight exploration and production permits in New Zealand, and one in Australia.
Operations in New Zealand include production from the Cheal and Sidewinder oil and gas fields with the Puka, Supplejack and Cardiff new pool discoveries under development. The Company owns and operates three production facilities in the Taranaki Basin