TAG Makes Oil and Gas Discovery in New Zealand

TAG Oil has discovered light oil and gas in the Sidewinder-4 exploration well, which is located in exploration permit 38748, Taranaki Basin, New Zealand.

The well indicated that the targeted oil-and-gas-charged Mt Messenger Formation sandstones extend significantly to the east of the Sidewinder-1 discovery well.

The well has targeted a fault-bounded 3-D anomaly, which intercepted a gross 29m sandstone reservoir.

The total depth of Sidewinder-4 is 1,410m, with 19m of net oil-and-gas-charged sandstones.

The firm is preparing to start the flow testing of the Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells in the coming weeks.

All wells will be placed into production through the Sidewinder Production Station, which is under construction and expected to be completed by mid-2011.