TAG Oil Ltd. reports that new wells in the Company's drilling program underway in the Taranaki Basin of New Zealand are showing encouraging results. These wells are part of an extensive New Zealand drilling campaign targeting significant hydrocarbon potential in lower risk shallow oil prospects and deeper high-impact gas-condensate prospects in the Taranaki Basin, and unconventional prospects in the East Coast Basin targeting naturally fractured source rocks.
Petroleum Mining Permit 38156 - Cardiff-3 (TAG 100%)
The deep Cardiff-3 well targeting the Eocene-aged Kapuni Formation is drilling ahead at approximately 4,113 meters after some delays due to the well encountering a high-permeability, hydrocarbon-bearing zone in the McKee Sands, at approximately 4,100 meters depth.
After drilling through the McKee Sands and into the second target zone, the K1A zone, TAG has encountered additional encouraging gas kicks of up to 20 times background levels. The Company expects to drill through the remainder of the main Kapuni Formation target zones in November and, at that time, will make a decision whether to complete and production test the well, if supported by data acquired as expected.