TAG Oil has 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 approx. 1400 meters. Strong initial flow test results were achieved, with each individual well having the capability to initially produce approx. 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.

The Cheal-B6, Cheal-A9 and Cheal-A10 wells will be placed on full-time production, along with other established production, once the enhancements to Cheal's artificial lift capabilities have been completed. These upgrades will allow TAG Oil to produce all existing and future wells simultaneously, and are expected to be complete within the next three months.

Tags: TAG Oil Ltd.