TAG Oil Ltd. (TSXV: TAO and 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.
The horizontal build section of the T100 well and approximately 300 meters into the planned 1,000-meter lateral section in the Abu Roash “F” (“ARF”) target reservoir encountered very good oil shows with high hydrocarbon gas readings and good indications of primary porosity. Initial drilling of the ARF unconventional, carbonate formation performed well at smooth build angles and steadily increasing drilling rates. However, drilling was encumbered by mechanical issues with the directional drilling tools and a minor throw fracture feature at which the Company elected to drill higher in the 50-meter ARF pay zone to go over the faulted section with the aim of increasing the final lateral length of the well.
Drilling has commenced from the intermediate cased section at about 2,800 meters and is projected to be completed in December. 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 BED 1-7 well has been on production since April 2023 and has reached a cumulative production of approximately 10,000 barrels of oil from the ARF. The well is currently undergoing a build-up assessment of the reservoir pressure to determine the depletion and potential of the well. It will be followed by clean-out operations and then will resume production. The Company is pleased with the results from the well and it provides important data for further development planning of the ARF in the BED-1 field.
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
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.
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.