TAG Oil Surges After Oil, Gas Discovery in New Zealand

TAG Oil Ltd. (TAO) surged 18 percent after the Canadian petroleum explorer discovered oil and natural gas at its land holdings in New Zealand.

TAG tested wells in the Cheal oil and gas field and is now producing at some of them, the company said in a statement on PR newswire. The company recently won approval to drill an additional 18 wells in the Cheal field.

TAG Oil, based in Vancouver, is focused on oil exploration on New Zealand’s North Island, which the company said has similar oil-rich formations to the Bakken region in North America.

The shares rose C$1.15 to C$7.40 at the close in Toronto. The stock has gained 12 percent this year.

To contact the reporters on this story: Jeremy van Loon in Calgary at jvanloon@bloomberg.net

To contact the editor responsible for this story: Susan Warren at susanwarren@bloomberg.net

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