TAG Oil Ltd. is providing the following update on the Company's Taranaki Basin oil and gas production, operations, and coming drilling activity.
TAG's near-term focus is on low-expenditure, in-field production optimization opportunities which have been identified to lift production. In addition, an extensive geotechnical and engineering review is being completed over TAG Oil's Taranaki development and exploration acreage with a view to initiate the next round of drilling on the Company's operated Cheal and Sidewinder Exploration and Development acreage later this year.
Oil and Gas Production
Average production (primarily from the Cheal oil field) for the first 15 days of April, 2015, was 2,252-BOE/d (gross) or 1,970 BOE/d (net), an increase of 116-BOE/d (gross) and 127 BOE/d (net) over March production. Fiscal year-to-date, up to March 31, 2015 production is estimated to have averaged 2,118 BOE/d (gross) or 1,856 BOE/d (net). TAG's average per barrel operating cost is approximately US$26 per BOE, and the Company's oil is sold on the premium Brent oil index.