TAG Oil Ltd. reported that the recently drilled Cheal-B6, Cheal-A9 and Cheal-A10 wells confirm a commercial oil discovery within the Urenui Formation at a depth of approximately 4,593 feet (1400 meters). Strong initial flow test results were achieved, with each individual well having the capability to initially produce approximately 200 barrels of light oil per day, plus associated gas from high-quality reservoir sands.

Permit-wide 3-D seismic interpretation, including data from pre-existing wells which all intersected Urenui pay, indicates that the Urenui Formation has been deposited as a blanket sand, and is prospective for oil discovery across the Cheal permit.

Tags: TAG Oil Ltd.