TAG Oil Ltd. report that TAG's Cheal-B7 discovery well has been flow tested and is naturally flowing at an average rate of more than 1,100 barrels of light oil per day plus associated gas. The Cheal-B7 well is located within TAG's 100%-owned Cheal oil and gas field, located in Petroleum Mining Permit 38156 in the Taranaki Basin of New Zealand.

The Cheal-B7 well was drilled to a total depth of approximately 2,100 meters and encountered a total of 18 meters of high-quality oil-and-gas bearing sands within the targeted Urenui and Mt. Messenger Formations, located to the northeast and up-dip of TAG's recent Cheal-B5 oil well discovery.

TAG CEO Garth Johnson commented, "TAG's Taranaki drilling continues to achieve very significant results, which now stands at 14 consecutive successful wells. The Cheal-B6, A9 and A10 wells will be tested over the next few weeks, and with another 10-wells planned in Taranaki this year, along with workovers to certain existing wells, we will continue to build our reserve base and oil and gas production. In order to facilitate the anticipated new oil and gas production, further expansion to the Cheal Production Facility, is now underway, which will ensure that all current and future Cheal wells can be produced concurrently."

Tags: TAG Oil Ltd.