TAG Oil encounters oil and gas at NZ Taranaki Basin well

Canada-based production and exploration company TAG Oil has flow tested the Cheal-B7 discovery well located in the Taranaki Basin of New Zealand.

The company found the well to be naturally flowing at an average rate of more than 1,100 barrels of light oil per day including associated gas.

The well, which was drilled to a total depth of 2,100m, is sited within the company’s 100%-owned Cheal oil and gas field in Petroleum Mining Permit 38156.

TAG CEO Garth Johnson said that 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," added Garth.

"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."

The well has tested a total of 18m of high quality oil-and-gas-bearing sands in the targeted Urenui and Mt. Messenger Formations, to the northeast and up-dip of the company’s recent Cheal-B5 oil well discovery.

Including the Cheal-B7 well, TAG’s current production is more than 4,000 barrel of oil equivalent (boe) per day with light oil adding another 70% to the production.