Tag Oil has completed drilling and testing operations at the Cheal-D1 exploration well, located near the northern portion of its 70% owned Cheal East permit in the Taranaki basin of New Zealand.
Tag drilled and completed the Cheal-D1 well approximately five days ahead of schedule and under budget to a total measured depth of 2400 m. It perforated an 18 m section of gas bearing sands in the Urenui formation.
Following extensive testing, it was determined that gas was present, however not in sufficient quantities to produce as an economic discovery. The well will be suspended with a plan to potentially re-enter in the future, Tag said.
All current drilling commitments on the Cheal East permit have now been met. Further testing work may be undertaken in the future to investigate other potential exploration opportunities in the neighboring fault blocks, as well as the potential of the two intervals of deeper Mt. Messenger sands that were encountered while drilling.
CEO Toby Pierce said he is disappointed the well did not contain commercial quantities of hydrocarbons. “However, based on these test results and further mapping, we will investigate the potential of sidetracking the well into an adjacent fault block in due course.
“Tag will now focus on preparing to drill the high impact Pukatea exploration well in fiscal Q4/18, advancing its farm-out activities and working on a range of optimization and exploitation opportunities,” he added.
The Pukatea prospect is a high impact exploration opportunity, targeting highly productive conventional reservoir. It is proximal to existing infrastructure and has a number of low-cost alternative development paths.
The permit covers an area of approximately 85sq km square km and is located to the east of Tag’s producing Cheal field. Three wells have been drilled since the Puka oil field was discovered in 2012, with the Puka-1 and Puka-2 wells producing 100 b/d from the Mt. Messenger formation.
Prospective resources attributable to the Pukatea prospect estimated to range from 1.3-40 MMboe with a best estimate of 12.4 MMboe.
Image: Map of Tag's Taranaki permits / Tag
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