Canadian independent TAG Oil Ltd. has announced that an outside reserve study prepared for Cheal field operator Austral Pacific Energy Ltd in New Zealand showed reserves are up “significantly”.

Based on the parameters used in the report TAG's share of proved and probable resources has increased by US$14 million since a year ago to US$31.71 million.

"Although we are encouraged by the operator's December 31 report relating to an increase in value of Cheal oil field reserves, any estimate of future value requires successful implementation of a field development plan, which has yet to be agreed upon, TAG Oil chief executive, Garth Johnson said in a statement.

The report shows TAG's reserve values have benefitted from higher world oil prices and that the Cheal field's 2P reserves have remained materially consistent from the last reporting period, he said

Tags: Austral Pacific Energy Ltd., TAG Oil Ltd.