TAG Oil Ltd (TAOIF)

[DANA1]

Cheal - B4ST. (From Another Board)

He (Cadenhead) said the Cheal-B4ST Urenui flows were to the north of the historic Cheal-A1 and A3 wells that had been producing from the Urenuisince last June. The Cheal-B4ST Mt Messenger flows were from abrand new zone “right at the top of the formation”.

“Right now this is the best well in the Cheal field,” he said.

“Given these excellent results, further development of the widespread Urenui formation will be a top priority.”

Cadenhead declined to speculate about possible additional reserves from the shallower formation but said: “The Urenui will feature strongly in our next drilling campaign that is due to start in September.”

My (comments from poster) interpretation is that the Mt. Messenger formation may need more fine tuning before it's able to produce or live up to our expectations, at least at Cheal. However from the language used by Mr. Cadenhead it seems to me that they are very pleasantly surprised that the Urenui is as productive as it is and they intend to drill it quite aggressively starting in September.

So regardless of the success or failure of our horizontal well at Cheal we have an entirely new and potentially very large horizon to tap into and maybe we will get some joy out of the Mt. Messenger formation as an added kicker from time to time too.

This last news now confirms that we have at least two fields that could be both large and highly productive and we could also be on the verge of making a new discovery at Cardiff.

Cardiff should be at target depth by Friday so maybe we are in store for a little action next week too.