VANCOUVER, BC, Jan. 26,
2023 /CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX:
TAOIF) ("TAG Oil" or the "Company") is pleased to
announce that the Company has commenced the re-completion and
evaluation operations of the BED 1-7 vertical well. These initial
operations are part of TAG Oil's Phase 1 development program of the
unconventional Abu Roash "F" ("ARF")
reservoir in the Badr Oil Field ("BED-1") located in the Western
Desert, Egypt.
More specifically, the Company identified a suitable candidate
well (BED 1-7) for re-completion that historically produced
approximately 20,000 barrels from the ARF reservoir at an initial
production rate of 418 barrels of oil per day. The well declined
quickly without any significant stimulation or liquid lifting from
the tight carbonate reservoir and was suspended after the first
year of production.
Current operations on BED 1-7 include conditioning the open-hole
section of the well with a cemented production liner, re-completing
the ARF and conducting a Diagnostic Fracture Injection Test (DFIT)
to provide information on the geo-mechanical properties and imaging
the natural fracture network in the ARF reservoir. Once this
initial stage had been completed, the Company will implement
hydraulic fracture stimulation to improve permeability and
productivity, followed by well flow-back and a production cycle to
assess the potential of oil recovery from the ARF in BED-1.
The Company anticipates providing well results in March 2023 that will improve the reservoir
simulation forecasts for the first horizontal well expected to
progress in the second quarter, pending drilling rig
availability.
Corporate Update
The Company is also pleased to announce it has ranked
17th on the 2023 OTCQX Best 50 list, which is a
ranking of top performing companies traded on the OTCQX Best Market
last year.
The OTCQX Best 50 is an annual ranking of the top 50 U.S. and
international companies traded on the OTCQX market. Companies in
the 2023 OTCQX Best 50 were ranked based on their performance in
2022.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based
international oil and gas exploration company with a focus on
operations and opportunities in the Middle East and North Africa.
Website: http://www.tagoil.com/
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements and
Disclaimer
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 Oil.
All estimates and statements that describe the Company's operations
are forward-looking statements under applicable securities laws and
necessarily involve risks and uncertainties. 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 will be the same in whole or in part as
those presented herein. TAG Oil undertakes no obligation, except as
otherwise required by law, to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors change.
Exploration for hydrocarbons is a speculative venture
necessarily involving substantial risk. The Company's future
success in exploiting and increasing its current resource base will
depend on its ability to develop its current properties and on its
ability to discover and acquire properties or prospects that are
capable of commercial production. However, there is no assurance
that the Company's future exploration and development efforts will
result in the discovery or development of additional commercial
accumulations of oil and natural gas. In addition, even if further
hydrocarbons are discovered, the costs of extracting and delivering
the hydrocarbons to market and variations in the market price may
render uneconomic any discovered deposit. Geological conditions are
variable and unpredictable. Even if production is commenced from a
well, the quantity of hydrocarbons produced inevitably will decline
over time, and production may be adversely affected or may have to
be terminated altogether if the Company encounters unforeseen
geological conditions. The Company is subject to uncertainties
related to the proximity of any resources that it may discover to
pipelines and processing facilities. It expects that its
operational costs will increase proportionally to the remoteness
of, and any restrictions on access to, the properties on which any
such resources may be found. Adverse climatic conditions at such
properties may also hinder the Company's ability to carry on
exploration or production activities continuously throughout any
given year.
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SOURCE TAG Oil Ltd.