TAG Oil Ltd. (“TAG Oil” or the “Company”, TSXV: TAO and OTCQX: TAOIF) is pleased to provide an operations update as the Company initiates Phase 1 of its strategic development program of the unconventional Abu Roash “F” (“ARF”) reservoir in the Badr Oil Field (“BED-1”) over the first half of 2023, consisting of the following:
- First Well Re-Completion: TAG Oil has chosen the BED 1-7 vertical well for its first re-completion and evaluation operations in BED-1. The well had previously tested at a peak rate of 418 barrels of 24ᵒ API oil and produced ~20,000 barrels of oil from the ARF during a one-year production period before being suspended.
The first stage of operations will involve conditioning the open-hole section of the well with a production liner, re-completing the ARF and conducting a Diagnostic Fracture Injection Test (DFIT) to provide information on the geo-mechanical properties and imaging the natural fracture network in the ARF reservoir. This will be followed with hydraulic fracture stimulation to improve permeability and productivity, flow-back and a production cycle to assess the potential of oil recovery from the ARF. Services and equipment for these operations are being secured, which TAG Oil has scheduled to be in place for operations to commence in mid-January 2023. The Company anticipates being able to provide well results in March 2023.
- First Horizontal Well: The data that is collected from BED 1-7 and incorporated into the modeling studies will help facilitate plans for drilling the first horizontal ARF well in BED-1. The Company has submitted the requisite drilling and environmental permits for the first well and anticipates that a drilling rig will be secured and ready to spud in the period of May/June 2023.
The Company will be observing production performance of these two wells and will likely plan to drill one more horizontal well in Q4 2023 or early in 2024.
TAG Oil also announces the grant of 1,150,000 stock options that are exercisable for a period of five years at a price of C$0.70 per share to various staff members and certain officers.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.
For further information:
Toby Pierce, Chief Executive Officer
Phone: 1 604 609 3355
Chris Beltgens, Vice President, Corporate Development
Phone: 1 604 682 6496
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 and Disclaimer
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.