TAG Oil Ltd. (TSXV: TAO, OTCQX: TAOIF, and FSE: TOP) (“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.
During 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 [email protected].
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
Email: [email protected]
Website: http://www.tagoil.com/
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.