TAG Oil Ltd. reports that the Taranaki Regional Council has granted the Company consent to perform a fracture stimulation on the Cardiff-3 well located in Petroleum Mining License 38156, should drilling results call for it.
Cardiff-3 was spudded on September 2, 2013 and is presently drilling ahead, on-time and on-budget at a depth of 3,918 meters. It will take approximately 14 more days to reach its total projected depth of 4,900 meters, at which time, a decision will be made whether to complete the well. Economic factors for completion, which would likely include a hydraulic-fracture stimulation, will consider total meters of net gas pay, indicative in situ permeability, and the interpreted volume of original gas in place that could be accessed with this well bore.
It is anticipated that in the event of a success at Cardiff-3, three wells would be needed to fully develop prospective resources estimated at 160 BCF and 5.49 million barrels of condensate on a P50 basis.