Monday’s news of TAG Sidewinder testing has us excited! Over a 24 hour period, using a temporary gas lift system, results showed 254 bbl/d of light oil and condensate in a lower unproduced interval in the Sidewinder mining permit (PMP53803). This oil comes from an oil pool that has never produced in the past and is contained below the gas cap. Previously, this permit cycled only minor amounts of gas with no reserves booked. In approximately two to three weeks, full-time operation will commence. TAG has designed a permanent liquids production facility that will allow TAG to continually produce liquids at the Sidewinder site. Other bypassed pay opportunities in additional Sidewinder wells could prove to enhance production in the near to medium term as well; these opportunities are in the process of being assessed by the company.
On a side-note, a work program has been developed for the remainder of 2016 at the Puka permits with JV partner MEO Australia (30%). With a commitment to drill one well on the permit by Q4 2018, other future plans for the acreage include putting the previously producing wells from the Mt. Messenger Formation back online.
TAG continues to work towards our goals of growing our production and reserve base through upcoming Cheal workovers and rod pump projects and we are pleased to be in a position to start the preparation for strategically planned exploration drilling of Cheal-E8 and E9.
As always, keep an eye out to stay informed on our upcoming activities as increasing production, minimizing costs, and portfolio expansion through strategic acquisitions will allow TAG to accelerate growth and maximize shareholder value.