Field news and more

Farmout agreement with Apache Corporation on the East Coast Basin

This news is in a press release on our site, but it bears repeating in the blog: We’ve entered into a farmout agreement with Apache Corporation to explore and potentially develop oil and natural gas resources in the East Coast Basin of New Zealand.  Apache has agreed to conduct a multi-phased exploration, appraisal and potential development program within TAG’s East Coast Basin exploration permits PEP 38348, PEP 38349 and PEP 50940 (“the Permits”). The Permits comprise in excess of one million prospective acres of onshore oil and gas opportunities located on the…

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TAG Oil-sponsored Taranaki bests Southland in Ranfurly Shield win!

The hard-fought rugby match was a double celebration for the Taranaki team, who secured the shield and cleared relegation danger. They defend in New Plymouth against Hawkes Bay this coming Sunday, in a little west coast versus east coast rivalry. A parade from downtown to the Stadium—with a predicted 35,000 in the stands—will allow proud locals to celebrate the team. Taranaki last won the shield 15 years ago…to the day of today’s win. Congratulations guys, and keep your foot on the gas!  

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Winter scenes from Cheal

Though it’s winter in New Zealand, snowfall is still rare on the valley floor. Except for a few snowballs, it doesn’t slow down work at the Cheal drill-site or Production Facility.

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TAG’s production capability soars

During the 2011 fiscal year TAG’s production rate averaged 413 barrels of oil equivalent (BOE) a day. Current production is now at approximately 950 BOE a day with a ramp-up of more than 5,000 BOE per day as TAG brings “behind-pipe” production online over the coming months. Now that’s what I call a serious production growth curve. This kind of growth doesn’t happen very often to oil companies, but it does happen once an awhile and for TAG, this is our time. Really amazing when you consider we’ve just begun our…

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Cheal Facility expands to help accommodate BOE from new wells

To accomodate the new wells TAG Oil has drilled in the last 9 months, we’re expanding the capabilities of the artificial lift systems at the Cheal Production Facility. We’re producing about 1000 barrels of oil equivalent a day now, with approximately 350 barrels of oil equivalent per day that is shutin, awaiting completion of the expansion. That work should be done by September.  

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This rock could power the world: Time Magazine and TAG Oil

Okay so Time Magazine’s article isn’t about TAG Oil, but it could be. Because they’re talking about the vast amounts of oil and gas that’s being found in tight oil plays. They’re finding major amounts of oil and so much natural gas in the United States, that it could potentially eliminate America’s reliance to foreign oil. Unconventional tight oil is exactly what TAG is targeting a half a world away, in the East Coast Basin in New Zealand. There are actually two formations in the East Coast Basin and they are the…

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Construction update

Piling and foundation work is well underway on the Sidewinder Production Facility. The separators, exchanger and coalescer are being built and tested in a shop in town, then we ship everything out to the site to weld it together. At the same time we’re building the 8” pipeline from the actual Sidewinder site about 3.3km’s away to tie into a major gas pipeline. When we attach the pipeline to the plant, we’ll be ready to produce.  

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Great Sidewinder-2 test flow rates: ~1467 BOE per day

Another good looking test on Sidewinder 2. The 4-point Isochronal flow test achieved stabilized flow rates of 8.8 million cubic feet per day (~1467 BOE per day) with less than a 25% drawdown. We encountered oil shows when we perforated the shallow Urenui Formation, but the interpreted pay zones are mainly from the Miocene-aged Mt. Messenger Formation. Drilled to 1,597 meters, we intersected the main Sidewinder discovery zone and four separate oil-and-gas charged zones of interest totaling 47 meters of net pay. Though all four Sidewinder well flow tests have…

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