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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
Post by cosmicpumpon Nov 02, 2011 10:37am
348 Views
Post# 19201682

Question for experts?

Question for experts?2 points that I dont understand. Maybe you can help me ......
1) "This facility is designed to handle up to 30 million cubic feet of gas production per day"
Why they limit their facility to 30MMcf if they think they can produce more natural gas from other wells (the 5 others well they plan to drill in few months) ? The addition of the 4 wells had an IP of over 30MMcf per day. This doesn't make sense to me....... Very weird......
2) "the first two Sidewinder wells tied into the facility are currently between 6 - 12 million cubic feet of gas per day"
Let's say 9MMcf. Why the 2 first wells produce only 9MMcf per day when they say few months ago the 2 first well were producing at around 15MMcf per day ? Why such big difference
Were they lying to us ? Like they try to hide the bad result they had with cheal in the past ?
I really begin to doubt management credibility....
I hesitate to sell my position because I begin to not trust the management.
Is somebody can enlighten me ?
Bullboard Posts