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TAG Oil Ltd. V.TAO

Alternate Symbol(s):  TAOIF

TAG Oil Ltd. is an international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa. It holds an interest in the Badr Oil Field (BED-1), a 26,000-acre concession located in the Western Desert, Egypt, through a production services agreement (the PSA) with Badr Petroleum Company (BPCO). It is focused on BED-1 the re-completion and evaluation operations of the BED 1-7 vertical well. These initial operations are part of its phase I development program of Abu Roash F (ARF) reservoir in BED-1. The BED 1-7 well started oil production from the ARF reservoir. Its Field Development Plan (FDP), consisting of drilling 20 horizontal wells to be completed with multi-stage fracture stimulation, is focused on the east central part of the BED-1 concession area and contains OIIP P50 volumes of 178.3 million barrels and mean volumes of 179.0 million barrels. Its subsidiaries include TAG Energy International Ltd., CX Oil Limited, and others.


TSXV:TAO - Post by User

Bullboard Posts
Comment by BenVest99on Oct 03, 2010 7:15pm
218 Views
Post# 17523561

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE

RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: RE: REThanks skeksis.

My understanding is that oil shown in the video comes from the Urenui formation. So, that would mean that they have 40 degree API oil in the Urenui and probably the same or better in Mt. Messenger. One thing for sure, it is high quality oil since they receive premium prices from West Texas Intermediate.

"The high-quality oil that TAG produces from the Taranaki Basin is sold primarily to Australian and Asian refineries, receiving premium prices to West Texas Intermediate because of its low sulfur content."
https://www.tagoil.com/production.asp#

Regarding the waxy oil, Mt. Messenger oil seems to contain more wax than average but less than what is found in the Urenui formation. I'm no expert in oil, but according to that one source, it seems that there is always a certain amount of wax in the oil when you get it out of the ground:

"Crude oil contains varying amounts of wax, or paraffin, and in colder climates wax buildup may occur within a pipeline."
https://en.wikipedia.org/wiki/Pipeline_transport

For Mt. Messenger, in slide 26 of the August corporate presentation it is stated that they employed down hole heaters to improve recovery. thus suggesting that there is wax in a sufficient amount to impact production if not heated.

As for Urenui, this formation as always been bypassed because the amount of wax there resulted in low and uneconomical production. The oil is very liquid in the ground, but it becomes solid as they show in the video when it gets taken out if it is allowed to cool enough. But they have been working on this problem since March of this year in the context of their optimization program.

The COO gives more info on the wax issue and the overall optimization program in the following interview:
https://tagoil.com/pdf/PetroleumNews_4-7-2010.pdf

As of note, they were expecting to increase production from 100 bopd to 200 bopd with the A-7 frac. We now know that the well was producing about 280 bopd following the frac stimulation. That shows that they were conservative again and that they over-delivered that time also. I hope they keep their momentum on that front!



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