TAG Oil Updates Pukatea-1 Exploration Well

TAG Oil Ltd. provide a positive update on its Pukatea-1 exploration well, which was spudded on January 24, 2018. The Pukatea-1 well is located in TAG Oil's operated Puka permit (PEP 51135, 70% TAG Oil) in the Taranaki Basin of New Zealand.

Intermediate casing has been set and TAG Oil anticipates that it will take approximately seven to ten more days to reach the top of the primary deep Tikorangi Limestone formation target. The total current planned depth of the well is ~3,170m measured depth.

Potential oil pay encountered in the Mt. Messenger Formation

Pukatea-1 has encountered potential oil pay in the well’s secondary Mt. Messenger target ~10.4m of true vertical thickness (~13.7m measured) gross sandstone within the shallower Mt. Messenger formation target at a depth of ~1,618m measured depth. Electric log data analysis indicates that there is at least one potentially oil-charged zone with movable hydrocarbons, excellent porosity and permeability. Maximum total gas reached 19.2%, good oil fluorescence was observed, and clean sand similar to the Puka-2 well was also observed by the wellsite geologist.

Toby Pierce, TAG Oil’s CEO, commented,
“We are very pleased so far with the results from the Mt. Messenger sands. It is highly probable that we can produce from the Mt. Messenger zone in this well in due course and, along with the shut-in Puka-2 wellbore, will allow us to monetize this asset at the appropriate time. Further, the well is currently on budget and schedule, and we are excited ahead of penetrating the primary Tikorangi target in approximately one week’s time. Finally, TAG Oil expects to release its Q3/18 results on the morning of February 14, 2018, and will update the market immediately following definitive results from the primary Tikorangi exploration target in due course.”