What can we expect next?The press release for the last quarter already told the story about the discovery. I particularly like the statement: ...electric logs indicated high-quality oil and gas pay in all wells.
We can anticipate the next three wells (C1, C2 and A8) to be over 100 boe/d each. Anything above will be a nice Christmas gift.
TAG's drilling operations in Taranaki continue to achieve excellent results with the first three wells (Cheal-C2, A8 and B5) in the next 10-well drilling campaign now cased and completed for upcoming testing operations. Oil and gas were encountered during drilling and electric logs indicated high-quality oil and gas pay in all wells.
Testing operations are now being conducted on the four most recent Cheal wells over the next 30 to 60 days (Cheal-C1, C2, A8 and B5) with drilling continuing to target the Mt. Messenger (~1800m) and the shallower Urenui (~1400m) Formations.
As the current Cheal testing program progresses, TAG is revising its production and reserve profile upward for the Cheal field. Recent drilling success has exceeded expectations, and after all new wells are adequately tested, TAG will consider all options to increase daily production and cash flow while maximizing the net present value of the field. Provision for high-impact deep prospects such as Cardiff, will also be included in TAG's expanding development plans for the Cheal field.