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TAG Oil Ltd. V.TAO

Alternate Symbol(s):  TAOIF

TAG Oil Ltd. is a Canadian-based international oil and gas exploration company. The Company is focused on oil and gas exploration and development opportunities in the Middle East and North Africa (MENA). In the Western Desert of Egypt, it is developing the unconventional heavy oil Abu Roash F (ARF) formation in the Badr oil field (BED-1). It holds an interest in the Badr Oil Field (BED-1), a 26,000 acres concession located in the Western Desert, Egypt, through a Production Services Agreement (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 TAG’s phase 1 development program of ARF reservoir in BED-1. The BED 1-7 well started oil production from the ARF reservoir. Its subsidiaries include TAG Energy International Ltd., TAG Petroleum Egypt Ltd. (Cyprus), TAG Petroleum Egypt Ltd. (Egypt Branch), TAG Oil (NZ) Limited, Trans-Orient Petroleum Ltd and others.


TSXV:TAO - Post by User

Bullboard Posts
Comment by Danka12on Jan 17, 2013 5:12pm
269 Views
Post# 20853509

RE: I'm looking at NZ for guidance here

RE: I'm looking at NZ for guidance here

I think it's a valid consideration (and yes, it looks like you got yelled at :)

Here´s how I would answer that. Tag has 20 wells. If you look at B3 type curve (in the presentation), you should get to fairly stable rates of around 200 bpd with 10-15% declines per year thereafter. I agree the IP rates shouldn´t be looked at (though the intial flows help pay down drilling costs quicker). So if we assume that the 20 wells are producing at approx 200 bpd (some more, some less), we´re at 4 kboepd. This is a rate that isn´t propped up by high IP rates. And I think they have plenty of lower risk locations to replace the 10-15% decline per year. 5 wells per year or so.  

Bullboard Posts