VANCOUVER, Dec. 11, 2014 /PRNewswire/ - TAG Oil Ltd. (TSX:
TAO) and (OTCQX: TAOIF), announces that New Zealand Petroleum and
Minerals has awarded the Company 100% interest in two new onshore
Taranaki Basin permits: Petroleum Exploration Permit 57065
("Sidewinder North") and Petroleum Exploration Permit 57063
("Waiiti").
Both permits, which add a combined 36,781 acres to TAG's
Taranaki Basin exploration portfolio, are situated in a prolific
oil and gas production fairway in close proximity to producing oil
and gas fields. Together with the Company's existing permits, TAG
now operates ten exploration and production permits in the Taranaki
Basin, and a total of sixteen permits including a 40% interest in
shallow water offshore Taranaki as well as interests in the East
Coast and Canterbury Basins.
This new acreage is strategic to TAG while also being highly
complementary to TAG's existing producing operations, production
infrastructure and pipeline network, enabling the Company to
commercialize future wells in an expeditious manner. More
importantly, TAG's new acreage, which has existing 2D and 3D
seismic coverage, expands the scope and potential size of the
Company's successful Mt. Messenger and Urenui Formation drilling
program, as well as providing potential for additional deep,
high-impact leads that can be analysed over coming years.
The Sidewinder North acreage (14,726 acres) borders and likely
extends TAG's known Sidewinder oil and gas discovery play area as
the permit contains the SuppleJack-1 oil and gas discovery made by
TAG in 2006, providing an indication of the future follow on
discovery potential within this acreage.
The Waiiti permit (22,055 acres), situated in the northern area
of the Taranaki Basin, offers the Company the opportunity to
explore for both shallow Miocene oil and deep Eocene
condensate-rich gas. A prior operator encountered significant
elevated gas and oil shows while drilling the historical
Pukearuhe-1 well within this new TAG Permit. Waiiti is an
intriguing area of the Taranaki Basin in close proximity to the
successful Pohokura (offshore) and Mangahewa (onshore) producing
fields directly to the west of TAG's new acreage. The geology of
this northern area of the basin is interpreted to have many
similarities to the Manutahi/Kauri oil and gas fields in the south
part of the basin.
TAG CEO Garth Johnson commented,
"We are pleased that New Zealand Petroleum & Minerals offers
opportunities on an annual basis, allowing for TAG to add new
acreage to the Company's exploration portfolio. This new acreage
falls within TAG's production back yard in the main Taranaki
producing fairway, providing us with the opportunity to expand our
core production area." Mr. Johnson further commented. "Low initial
expenditure of less than $100,000 per
permit over the first year of the 10-year permit tenure allows TAG
to cost effectively add to drilling inventory in coming years
within the Company's core production area."
Other companies that were recently awarded acreage in
New Zealand include US energy
giant Chevron, Norway's Statoil,
and the Indian government-controlled ONGC Videsh.
TAG Oil Ltd
TAG Oil Ltd. (http://www.tagoil.com/) is a
Canadian-based oil and gas company with extensive operations in
New Zealand. With 100% ownership
over its core producing assets, including production infrastructure
and associated pipeline, TAG is enjoying organic growth and
shareholder value creation through development of its oil and gas
discoveries. As New Zealand's
leading explorer, TAG is focused on increasing reserves and
production from low-risk development prospects and high-impact
resource plays prospective for large oil and gas discovery in
New Zealand.
Analogous Information:
Certain information in this
news release may constitute "analogous information" as defined in
NI 51-101, including, but not limited to, information relating to
areas with similar geological characteristics to the lands held by
TAG. Such information is derived from a variety of publicly
available information from government sources, regulatory agencies,
public databases or other industry participants (as at the date
stated therein) that TAG believes are predominantly independent in
nature. TAG believes this information is relevant as the analogous
information is nearby TAG's lands and it helps to define the
reservoir characteristics in which TAG may hold an interest. TAG is
unable to confirm that the analogous information was prepared by a
qualified reserves evaluator or auditor and in accordance with the
COGE Handbook. Such information is not an estimate of the reserves
or resources attributable to lands held or to be held by TAG and
there is no certainty that the reservoir data and economics
information for the lands held by TAG will be similar to the
information presented therein. The reader is cautioned that the
data relied upon by TAG may be in error and/or may not be analogous
to TAG's land holdings.
Cautionary Note Regarding Forward-Looking
Statements:
Statements contained in this news release that
are not historical facts are forward-looking statements that
involve various risks and uncertainty affecting the business of
TAG. Such statements can be generally, but not always, be
identified by words such as "expects", "plans", "anticipates",
"intends", "estimates", "forecasts", "guidance", "schedules",
"prepares", "potential" and similar expressions, or that events or
conditions "will", "would", "may", "could" or "should" occur. All
estimates and statements that describe the Company's objectives,
goals, forecasts, guidance, statements regarding prospects being
prospective for discovery and/or future plans with respect to the
drilling in the Taranaki Basin are forward-looking statements under
applicable securities laws and necessarily involve risks and
uncertainties including, without limitation: risks associated with
oil and gas exploration, development, exploitation and production,
geological risks, marketing and transportation, availability of
adequate funding, volatility of commodity prices, environmental
risks, competition from other producers, and changes in the
regulatory and taxation environment. Actual results may vary
materially from the information provided in this release, and there
is no representation by TAG Oil that the actual results realized in
the future would be the same in whole or in part as those presented
herein.
Other factors that could cause actual results to differ from
those contained in the forward-looking statements are also set
forth in filings that TAG and its independent evaluator have made,
including TAG's most recently filed reports in Canada under NI 51-101, which can be found
under TAG's SEDAR profile at www.sedar.com.
TAG undertakes no obligation, except as otherwise required by
law, to update these forward-looking statements in the event that
management's beliefs, estimates or opinions, or other factors
change.
SOURCE TAG Oil Ltd.