TAG Oil Ltd (TAOIF)

[DANA1]

It is nice to see management respond to this issue and clarify the work that is going on including the wells being reworked.

They did however contradict previous announcments wherein they said they would be drilling Cheal B6 & Cheal A9. In this announcement they said it would only impact Cheal B6.

I am really hoping that they will come forward with some flow rates SOON on the new wells and a further update on flow rates for the Sidewinder Production facility. I know it takes time, however, in these crazy market times, anything they can do to calm the waters would go a long way.

The good news from this announement is that they are reworking 5 existing wells which could improve production (based on previous success)by 150-200 BOPD per well. This could see production from Cheal more than double current levels (800 BOPD)

Oil productions could be as follows:

Existing field 800 BOPD
Workover wells conservative 750 BOPD - possibly 1000 BOPD
Cheal A8 & B5 - 300 BOPD each best guess (CB4 & CA7 over 300)
Cheal C1 & 2 - unknown as mostly gas but could reach 300 BOPD
Sidewinder oil - 160 BOPD (40 per well)

We should be well over 2000 BOPD in oil production plus gas (5000 BOE) by the end of the year.

Surely this is going to make the SP more than a mid $5 stock ???