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Tough Markets
Despite a real tough market this week, with nothing but bad news, and no news from TAG to offset this, it is good to see the stock still above $7.
It was only a month ago we were lamenting the fact the stock had dropped below $6, so all in all life is not that bad.
Somewhat surprised that TAG has not filed the June 30th financials & management report. The financials are not likely going to show much, however, the management report should contain signficant information for shareholders relating to the Sidewinder production facility and the East Coast deal with Apache and possibly some information on the 4 vertical shallow wells they are retaining exclusive interest in. They must be commercially viable or TAG would have rolled them into the agreement with Apache.
Does anyone know if the September drilling program is underway ??
Would be good to get a sense as to when they start so we can project when news will follow. I heard they might have lined up 2 drill rigs but not sure if this is accurate or not.
East Coast Challenges for Apache
Based on some recent reporting, it looks like the environmentalists & local tribes are going to make life a little interesting for TAG & Apache.
Not sure if this is just posturing or whether they will have any impact. Nothing ever comes easy. Just when you think we are moving forward at a fast pace, something comes up, which may or may not have a negative impact.
Here's hoping nothing gets in the way of testing and drilling in 2012.
June 30th Financials
Q1 financials are past due, so wondering if the Apache announcement might impact some of the disclosure information that will come out with them.
Looking forward to the management report that accompanies financial statements as it might give us a little better feel for what has happened on the East Coast & what a possible revised drilling program might look like for Cheal & Sidewinder.
Hopefully we are drilling Cheal C2 targeting the Moki formation early on.
This week is likely going to be very interesting. Hopefully the stock gains last week will hold and that we don't get a big downward push in value.
4 Vertical Wells on East Coast
If TAG is going to retain exclusive interest in these, they must be commerically viable. Wonder if they are producing oil now or have the potential to produce low levels (50-100 BOPD). If they are it is possible that TAG may plan to store and truck the oil out to generate additional revenue.
This article expands some of the information from the recent news release on Apache.
Apache rides into NZ
Neil Ritchie, New Zealand
Monday, 5 September 2011
US major Apache Corporation has entered the New Zealand exploration scene, teaming up with Canada-listed junior TAG Oil to explore conventional and unconventional petroleum plays on the East Coast.
TAG said over the weekend that Apache would earn up to 50% stakes in TAG’s three onshore East Coast leases by contributing up to $US100 million ($A943.8 million) over the next four years.
“TAG Oil is excited and honoured to partner with Apache in the East Coast Basin to achieve a common goal of converting the potential of the East Coast Basin to proven reserves with integrity, respect and excellence in a safe and environmentally responsible manner,” TAG chief executive Garth Johnson said from Vancouver.
“We are planning an aggressive exploration program with Apache, with a starting date of September 2011 to initiate seismic acquisition, with drilling to begin in early 2012.”
Industry commentators say the entry of Apache is a very welcome sign that the country is now firmly back on the radar of overseas explorers following recent unsuccessful exploration efforts, particularly the 2010 six-well offshore campaign by the Kan Tan IV semi-submersible rig.
Apache – the third new major in New Zealand during the last 19 months – follows fellow US major Anadarko, which first joined Origin Energy in offshore Canterbury Basin block PEP 38262 in February 2010, and Brazilian oil giant Petrobras, which won the frontier offshore Raukumara Basin block PEP 52707 in June last year.
“This is great news, another reputable major,” Petroleum Exploration and Production Association of New Zealand executive officer John Pfahlert told EnergyNewsBulletin from Wellington this morning.
“And this is confirmation, once again, that the government’s enthusiasm for, and promotion of, the responsible development of our all natural resources, including oil and gas, is starting to pay dividends.”
Pfahlert added that it seemed an obvious move for Apache to cross the Tasman after successfully building a large presence in Australia over the years.
TAG chief operating officer Drew Cadenhead also told ENB this morning that Apache had “stacked this (East Coast) potential up against other opportunities in the world, combining all the factors of exploring in New Zealand ... and determined that this opportunity warranted a potential $US100 million investment to find out more”.
He said Apache was interested in both the conventional and unconventional petroleum potential of the East Coast Basin.
Apache will pay 50% of costs already incurred by TAG in exploring leases PEP 38348, PEP 38349 and PEP 50940, as well as providing TAG a full carry over three phases of operations to a maximum agreed cost in each phase. If the agreed cost is exceeded in any phase, or if additional operations are conducted, Apache will pay a majority share of any drilling or seismic costs.
The planned exploration program will be conducted over the next four years, with the phases involving the acquisition of 2D and/or 3D seismic, together with drilling, with Apache earning increasing interests in the leases.
Apache will be operator for all activities, excluding the initial four vertical wells that TAG will operate with Apache’s assistance. Apache will spend up to $US100 million on completion of the third phase to earn a total 50% interest across the leases. At the end of the third phase, TAG will remain operator but will assign operatorship to Apache if the US major commits to phase four operations, when all future costs will be shared equally.
During the first phase, Apache will earn a 50% interest in less than 1% of TAG’s total East Coast acreage after operations are concluded and by committing to the second phase.
Cadenhead told ENB this initial phase would see 160km of 2D seismic, plus four vertical wells drilled to various depths between 1500-3000m.
“These wells will test a variety of play types, including conventional structural and stratigraphic prospects, as well as unconventional source rock prospects. We’ll start the seismic program early in the summer and hope to be drilling the first wells by March 2012.”
He said the land involved in drilling the wells equated to two “spacing units” – a term commonly used in North America and equivalent to one “section” of 640 acres.
“Apache will earn a 50% interest in a 1280 acre block around each of the four wells they will drill, with the total 5120 total acres equating to less than 1% of TAG’s total East Coast Basin acreage.
“Once they have finished phase two obligations and committed to phase three, they will have earned a 25% working interest in all of TAG’s 1.7 million acres in the East Coast Basin and once they have finished phase three obligations and committed to phase four, they will have earned another 25% working interest in all of TAG’s East Coast Basin acreage.
“Obviously we are very pleased with our new partnership with Apache. Development is in the early stages, but we look forward to working together with government and local stakeholders on the East Coast.
“We feel this validates our acreage prospectivity and brings a massive influx of technical and economic power to our continuing New Zealand programs.”
I wonder how all the short sellers are feeling today. At last count there was still almost 1 million short sale shares outstanding.
More Credibility for TAG:
This news should probably generate more interest from other analysts. Looking forward to seeing what value they put on the East Coast play now that Apache is on board.
This is GREAT News.
It frees up TAG to concentrate their resources on Cheal & Sidewinder and hopefully do more drilling and exploration than originally planned.
Apache has the resources to move the East Coast forward much faster than TAG would have done.
Cash flow ... Cash flow ... Cash flow
TAG OIL BLOG
There are some new photo's showing gas production facilities and the Vector Tie In on TAG's Blog. The only thing they haven't said is whether or not this is the new Sidewinder facility or the older Cheal facility. If it is the new one, it is possible that they are producing now from the Sidewinder wells ???
Sidewinder Production Station
Tag should be getting close to bringing this facility on-line.
Does anyone have any sense as to whether or not bringing this on-line will have any impact on the share price ??
Does the current share price already reflect the projected revenues from the Sidewinder wells ??
If the market has already priced in these wells, then we will probably not see much if any movement until we get some further positive drill results.
Any thoughts ??
When I got into TAG a little more than a year ago, I never imagined that it would be such a roller coaster & that we would still be sitting here now, waiting ....
That being said, I have learned a lot about the oil industry, how to buy and sell to make money while we are waiting and how to enjoy the ride.
There are days when I get anxious for things to move forward, but looking back, I am very pleased with how management has put together their plan, executed it .. and how we who have hung in there will soon begin to reap the rewards of their efforts and of course our patience.
Looking forward to Q1 financials at the end of this month which should be positive and profitable, but mostly looking forward to an announcement regarding the completion of the Sidewinder production station and the in-pipe capacity actually turning into cash flow.
Also, with September right around the corner, drilling commences once again and we should begin to get some news of new exploration wells.
Patience is a virtue ... increased share prices will be a blessing. Have a great weekend & continue to enjoy the ride.
Another solid endorsement of this company and the potential it holds. The next few months should be very positive for TAG and of course us shareholders.
You must be looking at TAOIF on the OTCQX exchange which closed at $7.03. This exchange is always higher for some reason, but very light volumes.
TSX was down to $6.74 at the close.
Up until the last minute when someone dumped 2200 shares at .20 below the last price. Close $6.74 versus $6.95 only moments earlier.
Strange !!!
Artificial Lift Equipment needed by TAG for Cheal C1 & Sidewinder 2. Wasn't sure what this meant but here is a definition I found on-line.
Artificial lift
A system that boosts the fluid column in a production well in order to improve flow rates. A range of solutions are possible, including gas lift, electrical submersible pumps and electrical rod pumps.
It's TAG Time !!
A solid foundation has been laid. 7 new successful exploration wells (Sidewinder 1-4, Cheal Horizontal, Cheal B4ST & Cheal C1) have been drilled & tested and ready to come into full production.
TAG is debt free and their revenue stream is poised to increase from $16 million (year end March 2011) to over $100 million per annum as soon as the production facilities at Sidewinder & Cheal are ready to produce & handle these new wells.
The company posted a Q4 profit based on average daily production of around 500 BOPD. Q1 2011 (June 30/11) results will be out at the end of August and should show a good profit as production has been just under 1,000 BOPD during this time frame.
A new drilling program is about to start in September targeting proven fields (Sidewinder, Cheal & Cardiff), so more positive results can be anticipated.
If the Moki formation (Cheal Field)is proven to be an oil pay zone, this will be huge for the company. In addition the East Coast is scheduled to have 2 exploration wells drilled targeting both Waitangi Hill and Boar Hill in late 2011/early 2012.
The company has gained credibility by being promoted to the TSX main board and adding an experienced oil executive to their Board of Directors.
There is absolutely no reason this stock should not be over $10 by the end of the year. Based on "in pipe" production of over 6,000 BOPD, just waiting, I'm not sure that we shouldn't be there now ... but the markets are the markets.
I believe we should start seeing TAG move upward in the very near future. The stock has been lagging in the $5-6 range too long.
It's TAG time NOW !!!
TAG flows more oil from Sidewinder, Cheal
This posting was found on petroleumnews.net. It has a little more information than the News Release
Neil Ritchie, New Zealand
Friday, 12 August 2011
THE good news continues to flow from TAG Oil’s onshore Taranaki Sidewinder and Cheal fields, as does the good oil, with strong test results from the Sidewinder-2 and Cheal-C1 wells.
The Ensign 19 rig drilling TAG Oil's Sidewinder-2 well in Taranaki, NZ
The Vancouver-headquartered company said overnight the test results confirmed “new oil and gas discoveries”.
It recently completed flow testing of the last two of the five Miocene-aged oil and gas-bearing zones encountered during the drilling of Sidewinder-2 early this year. These two zones were encountered in the shallower Urenui Formation and in the lower Mount Messenger Formation, below the main Sidewinder gas zone discovery.
TAG said the oil-bearing sands in the lower Mt Messenger section, found at depths of about 1800m, were of particular importance as the company had recovered “significant volumes” of light oil during recent swab testing.
Chief operating officer Drew Cadenhead told EnergyNewsBulletin in New Plymouth this morning that TAG could not easily quantify the volumes likely to be produced during flow testing as Sidewinder-2 oil from the lower Mt Messenger was waxy, though not as waxy as Cheal oil.
“With these waxy oils, they only flow naturally for a while and then they clump in the storage tank,” Cadenhead said.
However, technical data suggested this oil zone could produce at rates consistent with other established Mt Messenger oil wells in the immediate area, such as Tag’s more southern Cheal field.
“These oil-bearing Mt Messenger sands are interpreted to be widespread in the Sidewinder permit area and will be a primary target in future exploration wells,” he said.
Cadenhead said TAG would proceed to commercialise oil production from the lower Mt Messenger zone, acquiring artificial lifting equipment best suited to the overall Sidewinder exploration and development strategy.
He added that gas discovered in the shallow Urenui formation, at a depth of about 1400m, also interested TAG.
That zone had flowed clean, dry gas at rates ranging from 1-2 million cubic feet of gas per day, about 167-333 barrel of oil equivalent per day, through various choke sizes.
Production from the Urenui zone could now be commercialised by co-mingling with the main Sidewinder gas discovery zone.
TAG chief executive Garth Johnson said: "We continue to achieve excellent exploration results which indicate that TAG has potentially discovered a large oil and gas field at Sidewinder.
“In addition to the prolific main gas zone discovered, there are now two significant high-impact discovery zones to pursue in this acreage.”
Johnson said the new Mt Messenger oil discovery would add to the more than 5000boepd of “behind-pipe” production capability ready to come onstream, largely from Sidewinder when commissioning of the associated production station started in mid-September.
TAG has just applied for a 40-year mining licence for the Sidewinder exploration lease PEP 38748.
The company said testing of the Cheal-C1 exploration well had confirmed and oil and gas discovery in the Cheal C area, previously known as Cardiff, in its 100% controlled lease PEP 38156.
Cheal-C1 intercepted oil and gas-bearing sands in the Mt Messenger, which produced 1.5-3 million cubic feet per day of clean dry gas during testing. There were also “substantial volumes” of light oil produced during swab testing.
Again, Cadenhead said it was difficult to measure volumes of oil produced due to it solidifying “but we are confident it is capable of flowing well”.
TAG estimates production capabilities from Cheal-C1 to be similar to the sidetracked Cheal-B4ST well that recently flowed 360 barrels of oil plus 240 thousand cubic feet of gas per day.
Artificial lifting equipment is being acquired to establish daily oil production rates at Cheal-C1, which also encountered strong oil shows within a 73m-thick sandstone section within the deeper Moki Formation. This zone was also tested but commercial flow rates were not achieved.
TAG's technical interpretation indicated that Cheal-C1 penetrated a "transitional zone" where oil migrated through the contacted zone into a large structural closure, updip from the Cheal-C1 penetration.
Given the extensive oil shows recorded while drilling, coupled with the excellent reservoir quality interpreted from electric logs, TAG is planning a new well to directly target the Moki prospect but to be drilled from a more optimal location on the structure.
“I’m pleased to achieve such positive results from the Cheal-C1 well, significantly expanding the Cheal development area,” Johnson said.
“We expect to commercialise the Cheal-C1 discovery in conjunction with appraisal drilling included in our next drilling campaign, scheduled to start in September.”
Click here to read the rest of today's news stories.
I agree, the news just keeps getting better and better. At some point the stock price must follow, hopefully once we actually get some increased production from all these wells.
Can anyone explain to me how involved it is to get "artificial lift equipment" in place for both the Sidewinder 2 oil and Cheal C1 Oil in order to commercialize and bring into production.
Just wondering how long it might be before we see actual production ??
Found this headline on petroleumnews.net
TAG claim endorses Sidewinder
Neil Ritchie, New Zealand
Tuesday, 9 August 2011
CANADA-listed junior Tag Oil has applied for a 40-year mining permit for its onshore Taranaki Sidewinder oil and gas field discovered last year.
I find it interesting that Cadenhead states that
"All these wells have been drilled, completed, tested and should be onstream by the end of 2011."
If this is the case then why is management not releasing final test results for the remaining zones on Sidewinder 2 & the results for Cheal C1 ????
Either Cadenhead has misspoken or management is holding out on releasing information to the market.
Not sure that any news right now would offset the negative outlook on our global markets right now.
Not sure what IHMO means ??
March 31, 2011 - YE Financials
Revenue $13 million - up from $6.5 million 2010
Net Loss ($453k) - down from ($2,600k) in 2010
While the net loss for the year is disappointing, a notable improvement was shown. Average production for the year was approx 422 BOPD, whereas management is now reporting production is currently at 950 BOPD with escalation to over 6,000 BOPD by September 2011 when they bring on the Sidewinder wells and the shut in capacity at the Cheal Production facility (upon completion of upgrades).
On a positive note the 4th quarter revenues reached an all time high of $5 million (539 BOPD) and a net profit of $195k was recorded. Based on current increased production etc., it should not be too long before the company starts reflecting a consistent and sustainable operating profit. Q1 (June 30 2011) should show a profit as production was up over Q4 levels. The company will not see the impact of Sidewinder & Cheal until Q3 as the new wells and increased production will not happen now until September 2011.
Financials are trending nicely. Not sure when the markets or analysts will give credit for this, but it can't be too far in the future.
2012 Drill Program
Based on the Management Report & Information provided relating to the use of funds under the various offerings here is what TAG is reporting for 2012 in terms of upcoming drilling.
PMP 38156 (Cardiff/Cheal) - 5 vertical wells & 2 horizontal wells for 2012.
- This is 7 new wells for already established fields.
PEP 38748 (Sidewinder) - 5 vertical wells (2012/2013) & another $5 million for a Production Facility (2012)
- I guess this means the current faciltiy under production is already inadequate ??? It also looks like the planned Sidewinders 5-8 may bleed over into 2013 as there might not be production capabilities for any new wells.
PEP 38349 (Boar Hill - East Coast) - 1 stratigraphic well (2012) & 1 exploration well (2012)
PEP 38348 (Waitangi Hill - East Coast) - 3 stratigraphic wells (2012) & 1 exploration well (2012)
Looks like we are getting at least 2 major deep drills on the East Coast in the next year
PEP 50940 (Nick's Head - East Coast) - 1 stratigraphic well.
Looks very promising and exciting for the East Coast and if they can keep hitting at Cheal/Cardiff the next year could have huge upside for this company.
$6.85 Close (up .24) with no news.
The price seems to be trending upward, however, the demand for the stock remains surprising small. The trading volumes are still extremely low for a stock with so much potential and with the added exposure of the TSX main board. Is this an indication that management has to do more to generate more market interest in this stock ???
Hopefully this upward price trend will continue and that we won't get another down turn once the March 31, 2011 financials are released next week and/or we start to get the remaining flow rates from Sidewinder 2 & Cheal C1.
Looking forward to the company announcement confirming the completion & production startup for the Sidewinder production facility. Based on their blog & the pictures posted I am guessing they are behind schedule and August isn't likely for completion. Hope I am wrong !!
September could be huge for the company, especially if they continue to get positive wells in the Sidewinder field as they commence drilling wells 5-8.
August could also bring exciting & good news.
YE Financials & Management Report to shareholders are due in the next few days. This should give us a much clearer picture of what the next 12 months hold.
Q1 (April - June) will be out by the end of August 2011 with production running at about 1,000 BOPD.
We are still waiting on flow rates from the remaining 4 zones of Sidewinder 2 & on Cheal C1, especially the Moki Formation.
Hopefully the Sidewinder production station will be complete and producing in August, but more than likely September.
The Cheal Production station upgrades are supposed to be done by September as well, so increased production should kick in some time in September.
The September drill program (Sidewinder 5-8) will probably bring on a lot more gas but very little oil. Hopefully the East Coast basin in November will bring on more oil.
From now until the end of the year should be very positive and hopefully we will finally hit the double digit stock price the analysts are predicting.
FROM ANOTHER BOARD
Thought you might be interested in this.
A NEW MEMBER HERE, SPOKE TO GARTH JOHNSON TODAY AND FIGURED I WOULD SHARE WHAT HE SAID. EAST COAST WILL BE DRILLED IN NOVEMBER, CHEAL PRODUCTION IS 1000 BOE PER DAY 85% OIL, THIS IS ENOUGH ALONE TO SUPPORT DRILLING OPERATIONS ON EAST COAST. MORE SIDEWINDERS 5-8 TO BE DRILLED BEFORE NOVEMBER. SIDEWINDERS ARE MOSTLY GAS, SIDEWINDER 1 CAN PRODUCE UP 5000 BOE PER DAY BUT IT IS PURPOSELY CHOKED BACK. SIDEWINDERS WILL FAR EXCEED WHAT TAG ANTICIPATED IN PRODUCTION. THEY CAN NOT DRILL ON THE EAST COAST BEFORE NOVEMBER BECAUSE OF SHEEP AND THEIR YOUNG, THIS IS STIPULATED IN THE LEASE AND IT IS TO PROTECT THE ECOLOGY. THEY FEEL THAT THEY HAVE THE TRAP ROCK, THE SOURCE ROCK AND A 500 METER THICK SHALE ON THE EAST COAST. THE UNANSWERED QUESTION IS WHETHER THE OIL WILL FLOW. THIS COULD POTENTIALLY CHANGE THE COMPANY. THE EAST COAST WILL BE AGGRESSIVELY TARGETED WITH MANY POTENTIAL SWEET SPOTS AND PLENTY OF INCOME FROM CHEAL AND SIDEWINDER AND 60 MILLION$ IN THE BANK. THE SKY IS THE LIMIT HERE....
It is also good to see new players in the game. I have notice a few different trading houses have started to trade since TAG moved to the TSX.
It's also good to see the share price holding it's own and increasing even though there has not been any tangible news (except for TSX promotion) since June 23/11.
It shows me that others are taking a genuine interest and that demand & share price will hopefully increase once we start getting some meaningful news on flow rates etc.
I would like to see an update on the Sidewinder Production facility and a somewhat more concrete production date than Mid Year or August/September. Hopefully they have not fallen behind schedule.
Nice close today - $6.74
Not a large volume though.
Wonder if this is in anticipation of something coming out this week ? We must be getting close to some updated flow rates on Sidewinder 2 (other 4 zones to be tested) as the first announcement was made June 23 & it is now July 18.
Also looking forward to flow rates from Cheal C1 (Cardiff). Might not happen until August if they are still testing Sidewinder 2.
We are also less than 2 weeks away (July 31) from YE Financial reporting for March 31, 2011 & the management report to shareholders for 2012. Should be a very interesting report and forcast for 2012. With all the increased production from Sidewinder & Cheal to happen by Sept 2011, cash flow should be very strong for the balance of 2011/12 & beyond.
The new drilling program starting in September 2011 should also create some buzz and excitement (Sidewinder 5-8, Cheal C2 & Cheal B5)& East Coast in November 2011.
I wonder why management didn't post anything on their blog about their promotion to the TSX & the addition of Keith Hill as a director.
I would sure like to see them post an update on Cheal Horizontal or better yet make a formal market announcement as I am sure they have some updated information to share.
The Drilling Program was outlined in the Cormack Report recently posted by Cabel.
Plans are to drill Sidewinder 5-8 by the end of 2011, Cheal C2 (Cardiff Discovery) & East Coast starting in November 2011.
Thanks Cabel
Every bit of exposure is good news for this stock. Hopefully with the promotion to the TSX, once we get news on flow rates & production from the Sidewinder Station, we should begin to see some more positive movement in the stock price.
The upcoming drilling programs in September (Sidewinder & Cheal) & November on the East Coast are likely going to be the main catalysts sustainable upward movement.
Looking forward to the rest of 2011 as things just appear to be getting better and better for this company.
Keith Hill
From another Board
Keith Hill has the experince to take TAG to the next level-I am sure he as the means to get the RIGs needed to keep exploration going at full throttle if thats whats is needed. His record speaks for itself. Look at page 19 of the link- its called creating shareholder value, I am sure you will note tow of the companys he as taken to the top and shareholders got top dollar for the shares when they were sold. Look at Valkyries and Tanganyika, both companys were under Keith Hills guidence. I am sure Keith will get any rigs needed http://www.shamaranpetroleum.com/i/pdf/InvestorPresentation-June-2011.pdf
Keith Hill
I heard a rumour that the TSX asked for a new director with more experience in order to approve TAG's move to the big board.
Here is a post from another Board.
Surprise move by TAG. A track record to envy, this will take TAO to a new level.
Maybe we could see a move by Lundin for TAO at some time in the future.
TAG Oil Ltd. is also pleased to announce that Mr. Keith Hill has joined the Company's board of directors. Mr. Hill is the Chairman of Black Pearl Resources Inc. (TSX: PXX) and ShaMaran Petroleum Corp. (TSX-V: SNM), and is the CEO of Africa Oil Corp. (TSX-V: AOI). Prior to this, Mr. Hill was instrumental in developing Valkyries Petroleum Corp. and Tanganyika Oil Company Ltd., both highly successful international oil and gas producers which were acquired by major oil companies. Mr. Hill holds a Master of Science degree in Geology and Bachelor of Science degree in Geophysics from Michigan State University, as well as an MBA from the University of St. Thomas in Houston.
Much Improved Credibility
What a difference 48 hours makes. To move from the Venture exchange to the TSX Main Board and to add a high profile director who is known in the industry = Improved Credibility.
Whats to follow ?
I believe we will see a positive earnings report for March 31/11 Year End and a very bullish management report for the upcoming year.
This is likely why we haven't heard anything from the East Coast as they were probably saving it for the Big Board.
Is it also possible that management has been holding back on Cheal Horizontal ? We have never been advised as to what changes to flow rates resulted from the additional 225 meters of perforation that took place earlier this year. The Cormack report also indicates that Cheal B5 will be drilled sometime before the end of 2011.
Cheal C1 flow rates should be out soon, so it will be interesting to see if these results, when announced, will have a more positive impact on the share price. Drilling of Cheal C2 can't be too far in the near future.
Exciting times ahead, especially seeing they should be coming into production on the Sidewinder field and the new drilling campaign (Sept 2011) is only 60 days away.
NEW Director for TAG in conjunction with Announcement of Graduating to TSX Main Board
TAG Oil Graduates to Canada's Senior Stock Exchange; Experienced Oil Executive Joins TAG's Board of Directors
VANCOUVER, July 5, 2011 /CNW/ - TAG Oil Ltd. (TSXV: TAO) and (OTCQX:
TAOIF) is pleased to announce that the Company has successfully graduated to
the Toronto Stock Exchange (TSX) from Tier-1 of the TSX-Venture Exchange. TAG
Oil's common shares and warrants will begin trading on the TSX on July 6,
2011, and will continue to trade under the same trading symbols: "TAO" and
"TAO.WT". TAG Oil's common shares will also continue to trade on the premier
tier of the OTC market in the United States, the OTCQX International, under
the trading symbol "TAOIF".
TAG Oil Ltd. is also pleased to announce that Mr. Keith Hill has joined
the Company's board of directors. Mr. Hill is the Chairman of Black Pearl
Resources Inc. (TSX: PXX) and ShaMaran Petroleum Corp. (TSX-V: SNM), and is
the CEO of Africa Oil Corp. (TSX-V: AOI). Prior to this, Mr. Hill was
instrumental in developing Valkyries Petroleum Corp. and Tanganyika Oil
Company Ltd., both highly successful international oil and gas producers which
were acquired by major oil companies. Mr. Hill holds a Master of Science
degree in Geology and Bachelor of Science degree in Geophysics from Michigan
State University, as well as an MBA from the University of St. Thomas in
Houston.
In order to facilitate the appointment of Mr. Hill to TAG's board, Mr.
John Vaccaro has tendered his resignation. TAG wishes to express its thanks to
Mr. Vaccaro for his valuable contribution over the past several years. TAG
Oil's board now consists of Alex Guidi, Garth Johnson, Keith Hill and Ron
Bertuzzi.
TAG also advises that the Company has granted a total of 500,000
incentive stock options to certain directors and officers. These options are
exercisable until July 5, 2016, at a price of $6.15 per share, subject to
one-third of the total options vesting every six months from the date of grant
over a period of eighteen months.
TAG Oil Ltd. TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based
production and exploration company with operations focused exclusively in New
Zealand. With 100% control over all its core assets, including oil and gas
production infrastructure, TAG is anticipating substantial oil and gas
production and reserve growth through development of several light oil and gas
discoveries. TAG is also actively drilling high-impact exploration prospects
identified across 2,712 sections of land in the onshore Taranaki and East
Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG Oil is pursuing the major unconventional
resource potential estimated in the fractured shale source-rock formations
that are widespread over the Company's acreage. These oil-rich and naturally
fractured formations have many similarities to North America's Bakken Shale
source-rock formation in the successful Williston Basin.
To view this news release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/July2011/05/c3438.html
TMX - (TSX Host Company has TAG gives TAO a consensus "Strong Buy Rating" of 1.50. TMX.com (Research Button)
It should be noted that a large number of Mutual Fund companies will not invest in shares on the TSX Venture Exchange. In addition many International Investors will not touch shares on the Venture Exchange.
Moving to the TSX main Board should open up a new market for shares, thus increasing demand.
I would have to believe that TAG will be looking to make a statement now that they are on the TSX, so they may be bringing out some big news in the very short term.
Keep your fingers crossed & let the fun begin :)
Standard & Poor's Announces Changes in the S&P/TSX Venture Composite Index
Jul. 4, 2011 (Canada NewsWire Group) --
TORONTO, July 4, 2011 /CNW/ - Standard & Poor's will make the following changes in the S&P/TSX Venture Composite Index after the close of trading on Monday, July 4, 2011:
• Tag Oil Ltd. (TSXVN:TAO) will be removed from the index. The company will graduate to trade on TSX under the same ticker symbol. Tag Oil will remain a constituent of the S&P/TSX Venture 30 Index until the next index rebalancing in the middle of July, 2011.
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Update on Cheal C1 (Cardiff)
08/06/2011Cheal Continues to Deliver for TAGVancouver-headquartered TAG spudded Cheal-C1 on May 20, primarily to test the shallow Miocene-aged Urenui and Mount Messenger Formation sands encountered by the original Cardiff-1 well drilled by operator Shell New Zealand in 1992.
TAG yesterday afternoon said it had deepened the well, from a target depth of about 2100m to a total depth of 2382m, to test the downdip edge of a large closure within the deeper Miocene-aged Moki Formation.
The company said it had now set production casing to the revised total depth in order to production flow test the light oil potential identified in both the Mt Messenger and Moki targets, which is usually found at depths of about 1600m and 2200m respectively across much of Taranaki.
It intercepted more than 15m of net oil and gas bearing sandstones in the Mt Messenger sands, with good porosity and free oil encountered while drilling through the zone.
Strong oil and gas shows were also encountered within a 73m thick, high quality section of porous and permeable sandstone within the deeper Moki.
It is known TAG also experienced some good shows in the Urenui but decided to concentrate on the two lower formations with Cheal-C1.
TAG acquired the Cardiff lease PMP 38156-D from former operator Austral Pacific Energy (44.9%) and integrated energy company Genesis Energy (55.1%) last September, more than a year after acquiring bankrupt Austral’s 69.5% stake in the nearby Cheal oil field, lease PMP 38156-S.
It now runs Cheal, which flows from the Urenui and Mt Messenger formations, and Cardiff, now called Cheal-C, as the single mining lease PMP 38156, reflecting the close proximity of the two fields and TAG’s desire to develop both resources.
Cheal-C1 was drilled directionally from a new Cheal-C wellsite and drilled about 3.5 kilometres to the northwest of the existing Mt Messenger producing Cheal wells.
TAG said these latest results extended the Mt Messenger oil saturation area over a considerably larger area than previously known.
It also said any future wells directly targeting the Moki would be drilled in an updip position, which could potentially intersect substantially more of the hydrocarbon charged Moki sands.
"We are very pleased to have extended the Mount Messenger play into the C block and look forward to further exploiting this oil-prone area," TAG chief executive officer Garth Johnson said.
"We're also very optimistic about the Moki formation discovery potential, which is a prolific oil producer in the offshore Maari oil field.
“However, very few wells have targeted this formation onshore so we will need flow test data before any conclusions are reached in regards to its commercial potential,” he added.
These results augur well for a second well, Cheal-C2, which TAG has already said it may drill, depending on the outcome of the Cheal-C1 testing.
A second Cheal-C well will not be drilled at the earliest, however, until fellow Canadian company New Zealand Energy Corporation and partner L&M Energy have finished their Talon-1 drilling program in nearby lease PEP 51151 (Alton) utilising the Ensign Rig 19 that drilled Cheal-C1.
Cheal C1 (Cardiff)
This is certainly good news.
I wonder how long it will take for them to release flow rates as they still have Sidewinder 2 & 4 to complete and with the location of this new discovery being 3.5 kms away, how long it will take to bring into production.
I don't think the markets can ignore or penalize this stock much longer as there is so much good happening here and once the oil & gas start to come into production (Aug/Sept 2011)cash flow is going to explode.
There is activity on the East Coast as management has released tidbits from time to time about shallow exploration wells etc. I believe it is just a matter of time before something of consequence is announced here as well.
I think the March 31, 2011 Financials should bring some good news as well as it looks like TAG produced 55-58k BOE for the final quarter based on Johnson's claim they produced 160,000 for the year. They had 102k of production at end of Q3.
Hopefully these statements will show the company being profitable for the very first time. This would help bring some much needed credibility to both the company and the management.
Some of the lack of market acceptance can be directly attributed to the fact that many of the market players do not like this management team due to past failures.
I believe this reputation is about to change.
Thanks for the clarification.
Here's hoping for good news on the Cardiff (oil & gas potential) as they should be finished drilling by now.