RE: Cormark wrote:Thanks Cabel1for the link to the Cormark reports. There were some facts that Tag had not previously revealed;
Sidewinder Production Facilities
TAG is currently installing production facilities and expects to place the Sidewinder discovery on production in August 2011. The initial capacity of the facilities is 10 mmcf/d, (1,667 boe/d) but willbe expanded to 30 mmcf/d (5,000 boe/d) prior to year-end. Based on the initial test results of theSidewinder -1 & -3 wells, and the potential production additions from the Sidewinder 2 & 4 wells,we expect Sidewinder could be producing 30 mmcf/d plus associated and non associated liquids bythe end of 2011. Assuming production of 1,500 boe/d from Cheal and 5,000 boe/d from Sidewinder, TAG’sproduction could reach 6,500 boe/d by the end of 2011
From Tag's NR I was under the impression that when the facilities started up in Aug. it could handle 4000 BOED
Cheal-C1 Encounters Potential Pay in the Moki Formation
On June 7th, 2011, TAG announced the drilling results from the Cheal-C1 exploration well (100%WI) that was drilled 3.5 km to the northwest of the Cheal field (Figure 3). The exploration wellencountered over 15 metres of net oil and gas pay in the Mt. Messenger formation with free oilencountered during drilling. The Cheal-C1 well could prove that the Mt. Messenger sandstonescould be hydrocarbon bearing over a much wider area than previously known. While the Mt.Messenger zone was the primary target, the well was deepened to a total depth of 2,382 metres totarget the down-dip edge of a potential large closure within the Moki formation. The well intersected 73 metres of high-quality sandstone reservoir interbedded in a 200 metre section withinthe Moki formation. TAG plans to test the top 5-10 metres of the Moki sandstone to determine if the discovery is commercial. Future wells targeting the Moki formation will be drilled structurally higher, which could increase the potential pay of the discovery
Why only 5-10 metres to be perforated? Is it because the logs indicate water in the lower part of the Moki?
The Cardiff deep gas/condensate discovery is located in Permit 38156 (Cheal) which hasthe potential to be developed into a substantial, strategic resource asset. The Cardiff structure has been identified as a large anticlinal trap, with multiple pay zones within theKapuni Sands formation. Cardiff is situated on a trend which has yielded several sizabledeep gas/condensate discoveries in the Taranaki Basin, including the nearby landmark Kapuni Field, New Zealand’s first major discovery.Cardiff is a multi-zone discovery with a well in the upper Kapuni zone having flowed atover 3 MMcf/d and 100 B/d of condensate.Development of the Cardiff gas discovery will likely come if there is an exploration successin the immediate area that will complement the project (such as the Cheal-C1 well that iscurrently drilling).Of note, the nearby Mangahewa well flowed very similar to what the Cardiff wells flowedfrom the Eocene aged sand and when fractured properly, the well went from 1.0 MMcf/d to30 MMcf/d plus condensate illustrating the potential upside from this discovery