TAG Looking For Potential Oil and Gas Areas

The oil and gas producing company, TAG Oil Ltd, has now started its drilling campaign in the shallow formations at the Cheal oil and gas field. TAG Oil Ltd is a Canadian listed company with its base in New Zealand. During the exploration of Petroleum Mining Permit 38156 on the shore of Taranaki Basin, in New Zealand, the Cheal discoveries were found. Presently, gas and oil production is occurring at the Mt. Messenger Formation and Urenui Formation. Following these multi zone Cheal discoveries, Cheal-B4ST is the first of the many wells providing the maximum and targeted output.

Garth Johnson, CEO of TAG Oil, said that many prospects have been identified at Cheal. These give the company an opportunity for high reserves growth and increase in production. He added that they have a plan to fully exploit the shallow zones with the objective to increase the cash flow.  The company has also sought to pursue the deeper and condenser rich-gas formations. The additional production coming from TAG’s Cheal drilling campaign can increase production at a rapid rate and at an effective cost to the TAG oil station. The TAG oil station is located at a development area in Cheal.

The Ceal-B4 was drilled way back in December 2006 by operators to check a deeper target in the Moki Formation, which was suspended at that time. While the drilling process was started in its initial stage a large amount of oil shows were spotted and recorded within the Mt. Messenger Formation. However, the technical interpretation by TAG said that these oil shows are caused by an anomaly culminating in the Mt. Messenger Formation. It is approximately 250 meters from the penetration point of Cheal-B4.

The Petroleum Mining Permit 38156 is located at the shore of Taranaki, where oil and gas in rich quantity has been discovered. The Petroleum Mining Permit 38156 contains oil and gas but the oil and gas found in the Mt. Messenger and Urenui Formation in Cheal and the gas found within the shallow ends of the Kapunj Formation are more condensed and rich. This is the first major onshore discovery made by New Zealand in recent times.

The TAG oil company started its operation in New Zealand and is now a Canadian listed company. The TAG oil company has its control on all the main assets it controls including infrastructure for gas and oil production. TAG is making its move to expand and develop its company by making multiple gas and oil discoveries in Taranaki. The company has also set its eye on various other areas which are identified as a potential land onshore.



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