NEW PLYMOUTH, New Zealand,
May 14, 2015 /PRNewswire/ - Oil
and gas operator TAG Oil Ltd., listed on the Toronto Stock Exchange
(trading symbol TAO), and in the US on the OTCQX Market (trading
symbol TAOIF), reports that pipeline construction connecting
the Cheal-E development area to TAG's main Cheal-A production
infrastructure is nearly complete. The TAG-led, NZ$4.5 million
(US$3.3 million) project was
completed on budget and ahead of schedule.
"The new pipeline is an important addition to TAG's overall
infrastructure in the Taranaki region," said Max Murray, TAG Oil's New Zealand Country
Manager. "It allows us to significantly reduce operating costs even
while generating additional revenues, and it gives us the ability
to quickly monetize future oil and gas wells drilled in the Cheal-E
development area."
Cheal-E to Cheal-A Site Pipeline
The 4" pipeline connecting the new Cheal-E site to TAG's Cheal-A
site production facility is undergoing pre-commissioning and
rigorous testing now. It will shortly, over the next week, move
into the commissioning phase, at which point a three-phase well
stream of fluids (oil, gas and water) will be processed through the
Cheal-A site production facility.
In addition to the pipeline installation, an 11 kV HV electrical
cable and a fibre optic cable have been installed to improve the
power supply and communications between the Cheal-E and the Cheal-A
production sites.
"Along with the benefits of increased production revenue from
the sale of gas, we are very pleased to eliminate the need to flare
the solution gas at Cheal-E onsite," Max
Murray further commented. "The additional associated gas
will be sold under an existing Gas Sales Agreement."
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian based,
development stage, oil and gas company with extensive
operations—including production infrastructure—in the Taranaki
region of New Zealand. As one of
New Zealand's leading operators,
TAG is poised for long-term, reserve-based growth, and is
positioned with attractive exploration activities in the lightly
explored Taranaki Basin discovery fairway. As a low cost, high
netback oil and gas producer, TAG is debt-free and reinvests its
cash flow into development and step-out drilling along trend with
the Company's existing production.
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,
production rates, test rates, optimization, timing of operations,
increased pace of drilling, statements regarding prospects being
drill ready and/or future plans with respect to the drilling and
field optimization work 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.
