TAG Oil says that the Sidewinder-2 well is scheduled to begin drilling operations on February 7, 2011.

This is the first of several appraisal and exploration wells to be drilled in the 7910-acre (12 section), 100% TAG-controlled Petroleum Exploration Permit 38748 ("PEP 38748") in New Zealand's Taranaki Basin.

Following the success of the gas-rich Sidewinder-1 discovery, the Sidewinder-2 and 3 wells will be drilled to a depth of approximately 2400 meters, targeting the same Mt. Messenger Formation play level as Sidewinder-1. However, these wells will be drilled in a slightly downdip location to intersect an interpreted "oil leg" associated with this proven accumulation.

TAG plans to conduct a multi-well, high-impact exploration campaign in PEP 38748 targeting a number of Mt. Messenger prospects similar to Sidewinder, that have been identified permit-wide by 3D seismic.

Any successes arising from additional discoveries in PEP 38748 or additional Sidewinder production wells will be immediately tied into the Sidewinder Production Station. Currently under construction, TAG forecasts completion of the new facility by mid-2011.

Production from the existing Sidewinder-1 well, forecast to produce at rates of 8 to 10 million cubic feet of gas (1300 to 1600 barrels of oil equivalent) per day, will be brought on stream upon completion of the Sidewinder Production Station.

Tags: TAG Oil Ltd.