TAG adds three more production wells with Urenui find
Canadian oil and gas producer continues its string of commercial discoveries, with three onshore Taranaki Urenui Formation wells set for production in the next three months.
BUSINESSDESK: TAG Oil, the Canadian oil and gas producer, continues its string of commercial discoveries, announcing three recently drilled wells to explore the onshore Taranaki Urenui Formation will go into production in the next three months.
“Strong initial flow test results were achieved, with each individual well having the capability to initially produce approximately 200 barrels of light oil per day, plus associated gas from high-quality reservoir sands,” the company said in a statement to the Toronto Stock Exchange overnight.
The successful wells are Cheal-B6, Cheal-A9 and Cheal-A10, and oil was found at a depth of approximately 1400 metres.
TAG will place the wells in full-time production once enhancements to Cheal’s artificial lift capabilities have been completed, the company said.
“These upgrades will allow TAG Oil to produce all existing and future wells simultaneously, and are expected to be complete within the next three months.”
TAG said permit-wide 3-D seismic data indicate the Urenui Formation “is prospective for oil discovery across the Cheal permit”.
“These results continue to demonstrate the significant upside potential at Cheal,” chief executive Garth Johnson said.
“They open a new widespread oil play across the permit.
"Based on these consistent results, we will now integrate the Urenui oil play into our overall development and exploration strategy, which will also include Mt Messenger wells and the deeper liquids-rich Kapuni Formation gas play.”
The company has also mobilised a new drill rig to drill the Cheal-C3 and Cheal-C4 wells, which follow on from discoveries at the Cheal C site discoveries.
These include the Cheal-C2 gas condensate discovery well, primarily targeting the Mt Messenger Formation, which has achieved stabilised flow rates of approximately 14 million cubic feet gas per day (about 2,333 barrels of oil equivalent per day), which was increasing during the 10-day flow test.
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TAG adds three more production wells with Urenui find
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