TAG Oil Ltd (TAOIF)

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TAG Oil's Deep Drilling Targets Large Onshore Gas/ Condensate Resource in Taranaki Basin
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Tag Oil Ltd. (QX) (USOTC:TAOIF)
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Today : Tuesday 17 September 2013

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VANCOUVER, Sept. 17, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), announces that the Cardiff-3 well located in Petroleum Mining License 38156 was spudded on September 2, 2013 and is presently drilling at a depth of approximately 1000 meters. The Cardiff-3 well will take approximately 30 more days to reach its total projected depth of 4,900 meters.

Cardiff-3 is the first of three back-to-back deep wells being drilled (Cardiff-3, Heatseeker-1 and Hellfire-1) by TAG (100%) targeting Taranaki's successful Kapuni Formation.

All three wells are situated within the Taranaki Basin's main deep discovery fairway, where proven producing reserves of 6.9 TCF of gas and 372 million barrels of oil/condensate have been discovered in the Eocene-aged Kapuni Formation so far. (Source: http://www.nzpam.govt.nz/cms/petroleum/facts-and-figures)

Combined, the assessed "mid-range" resource potential for the Cardiff, Heatseeker and Hellfire prospects is 477 billion cubic feet of natural gas and 18 million barrels of associated condensates, as follows:

Gas (Bcf) Condensate (MMbbls)
Prospect P90 P50 P10 P90 P50 P10
Cardiff 68 160 382 2.04 5.49 15.15
Heatseeker 83 197 469 2.50 7.90 18.75
Hellfire 53 120 270 1.59 4.78 10.79
Total 204 477 1,121 6.13 18.17 44.69
Sproule International Limited has independently assessed the resource potential for Cardiff, and TAG's internal qualified reserve evaluator has assessed the resource potential of the Heatseeker and Hellfire prospects, all with an effective date of July 31, 2013. The resource assessments in the table above have been made in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook and are supported by several existing commercialized Kapuni Formation discoveries.

These deep wells are part of TAG's 11 well drilling campaign in Taranaki, which will be completed over the next six months. This program consists of a combination of development drilling, appraisal and exploration drilling: TAG currently has two drill rigs actively operating with a third rig to begin operating on TAG controlled land shortly.

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% ownership over all its core assets, including extensive oil and gas production infrastructure, TAG is enjoying substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact conventional and unconventional exploration prospects identified across more than 2,669,780 net acres of land in New Zealand.

The resource estimates in this news release were prepared with an effective date of July 31st, 2013. The estimates for Cardiff have been externally prepared by Sproule International Limited and the remaining estimates were prepared by an employee of TAG Oil Ltd. both of which are qualified reserve evaluators in accordance with NI 51-101 and the Canadian Oil and Gas Evaluations Handbook.

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