The lengthy oil price slump was positive for TAG Oil in certain ways, such as pushing us to lower production costs and increase reserve and production growth through work overs and acquisitions. We remained conservative, but as oil sentiment shifts into high gear, we’re more than ready to get back to exploring.
To fund the plans that we feel will maximize shareholder value, TAG has completed a financing of $14,095,770.
Our upcoming plans for the funds in 2017 are as follows:
Invest in an exploration opportunity either by drilling a Cheal exploration well or by farming-in to an existing New Zealand opportunity – both options are under active review;
Conduct a completion and testing program to evaluate bypassed pay zones in the existing Cardiff-2 well, with the objective of unlocking estimated recoverable resources;
Ongoing tests of gas/condensate from the Cardiff-3 well, with the objective of supporting commercialization of Cardiff production via tie-back to TAG’s nearby Cheal A facility;
Production optimization and waterflood activities across the Cheal Oil and Gas Field area to increase pressure support and thus the recovery factor;
And in the first quarter of 2018, TAG plans to drill up to two exploration or appraisal wells at Sidewinder.