VANCOUVER, March 19, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), is pleased to report that the Company has continued its
exploration success in the 100% owned Sidewinder oil and gas field
(Petroleum Mining Permit 53803) with the drilling and completion of the
Sidewinder-A5 and Sidewinder-A6 step-out wells.
Consistent with the original four Sidewinder discovery wells drilled in
the field to date, both wells encountered similar quality reservoir
sands within the Mt. Messenger Formation at ~2000 meter depth.
New phase of oil and gas exploration drilling initiated at Sidewinder.
This new phase of oil and gas exploration drilling has been initiated
22-months after the initial Sidewinder discovery, infrastructure build
and successful 4-well drilling program. TAG is now drilling the
Sidewinder-A7 step-out with Sidewinder-A8 to follow. Based on drilling
results to date, including permit-wide 2D and 3D seismic data, TAG
believes that the Sidewinder permit has excellent future exploration
potential and plans to pursue opportunities in both the shallow and
more importantly the high impact Kapuni Formation prospects.
"We're happy to be back drilling at Sidewinder," commented Drew
Cadenhead, TAG Oil's Chief Operating Officer. "We've picked up right
where we left off with our fifth and sixth successful wells at
Sidewinder. Continuing with this year's 13-well Taranaki drilling
campaign, Sidewinder-A7 has now been spudded with Sidewinder-A8 to
follow. We have now tied in Sidewinder-A5 and A6 to a flare tank for
clean-up, followed by immediate tie-in to the Sidewinder Production
Station for ongoing production. These Sidewinder oil and gas
discoveries follow on from the original discovery wells drilled in 2010
and 2011, with the Sidewinder-A1, A2, A3 and A4 wells completed as
shallow gas wells with associated light oil production. TAG will
continue exploration drilling over the coming years within the
Sidewinder permit, focusing on both the shallow and deep oil and gas
exploration potential."
For further information on TAG's 13-well drill program, please visit:
http://www.tagoil.com/20130123-TAG-Oil-13-Well-Taranaki-Basin-Drilling-Campaign.asp
Potential for additional discoveries within the Sidewinder permit area.
Sidewinder is a new field discovery situated in the main Taranaki
production fairway and is just lightly explored. To date, TAG has been
drilling the lowest risk shallow Mt. Messenger (~2000m) prospects in an
initial effort to minimize financial risk, build near term reserves and
leverage new infrastructure before drilling the high-impact prospects
in the Kapuni Formation (~4000m). This prolific formation is where most
of New Zealand's large fields have been discovered and will become a
focus for TAG.
"Given the positive results of these recent wells, we continue to be
optimistic for further discoveries within the Sidewinder permit area."
TAG CEO, Garth Johnson commented. "We have had excellent success with
our shallow Taranaki drilling program thus far and will continue to
exploit and develop this important play but our forward drilling
strategy will include wells into higher impact opportunities. TAG's
operating cash flow is estimated to grow substantially in April 2013
and combined with approximately $70 million in working capital and no
debt, we are in a position to now fund financially riskier
opportunities."
TAG Appoints Senior Oil and Gas Executive to New Zealand to Lead
Development & Build Natural Gas Business
TAG Oil Ltd. is also pleased to announce that Canadian oil and gas
executive, Mr. Randy Toone, P. Eng. will be joining TAG as it's New
Zealand Country Manager, and will be based in New Plymouth, New
Zealand. Randy brings significant operations and energy related
expertise and will help TAG leverage it's strong position, and execute
it's business plan which includes building the Company's natural gas
businesses.
TAG is pleased to have attracted a high calibre executive such as Randy
to help build TAG in New Zealand. He has a deep understanding of the
industry and has proven himself as a leader. Over the past ten years,
Randy was a senior executive with AltaGas Ltd. (TSX: ALA), a leading
Canadian energy infrastructure company based in Calgary Alberta. He was
originally hired as Operations Manager in 2003 and progressed through
to senior executive positions of President, Gas Division and finally as
President, Utilities. Prior to AltaGas, Randy has held leadership
positions with Williams Energy Canada, Petro-Canada Oil and Gas and
with Husky Oil Operations.
TAG has granted a total of 150,000 incentive stock options to Mr. Toone.
These options are exercisable until February 26, 2018, at a price of
$5.00 per share, subject to certain vesting provisions.
TAG Oil Ltd.
TAG Oil Ltd. ( http://www.tagoil.com/) is a Canadian-based production and exploration company with operations
focused exclusively in New Zealand. With 100% ownership over all its
core assets, including extensive oil and gas production infrastructure,
TAG is enjoying substantial oil and gas production and reserve growth
through development of several light oil and gas discoveries. TAG is
also actively drilling high-impact exploration prospects identified
across more than 2,984,171 net acres of land in New Zealand.
In the East Coast Basin, TAG will explore and potentially develop the
major unconventional resource potential believed to exist in the tight
oil source-rock formations that are widespread over the Company's
acreage. These oil-rich and naturally fractured formations have many
similarities to North America's Bakken source-rock formation in the
successful Williston Basin.
Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts
are forward-looking statements that involve various risks and
uncertainty affecting the business of TAG. Such statements can be
generally, but not always, identified by words such as "expects",
"plans", "anticipates", "intends", "estimates", "forecasts",
"schedules", "prepares", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
All estimates and statements that describe the Company's objectives,
goals or future plans relating to operations at Sidewinder and
generally in the Taranaki Basin are forward-looking statements under
applicable securities laws and necessarily involve risks and
uncertainties including, without limitation: risks associated with oil
and gas exploration, development, exploitation, production, marketing
and transportation, undiscovered original oil in place, availability of
adequate funding, volatility of commodity prices, imprecision of
reserve estimates, environmental risks, competition from other
producers, and changes in the regulatory and taxation environment.
Actual results may vary materially from the information provided in
this release, and there is no representation by TAG that the actual
results realized in the future will be the same in whole or in part as
those presented herein.
Other factors that could cause actual results to differ from those
contained in the forward-looking statements are also set forth in
filings that TAG and its independent evaluator have made, including
TAG's most recently filed reports in Canada under National Instrument
51-101, which can be found under TAG's SEDAR profile at www.sedar.com.
TAG undertakes no obligation, except as otherwise required by law, to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors change.
SOURCE: TAG Oil Ltd.
