TAG Oil Announces Continued Exploration Success with Two New Sidewinder Wells;
Senior Executive Randy Toone Appointed
VANCOUVER, March 19, 2013
VANCOUVER, March 19, 2013 /PRNewswire/ - 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
"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:
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
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.
Dan Brown or Garth Johnson
TAG Oil Ltd., 1-604-682-6496
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