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TAG Oil shares up as it produces 1,311 boepd in August; completes first phase at Cheal

Cheal-A11 and B6 wells are now back on production, said the firm

Oil and gas producer TAG Oil Ltd (TSE:TAO) told investors that the first phase of its planned workover programme at the Cheal field in New Zealand is now complete.

It also said output since August was above guidance with a current gross daily average rate of 1,311 boe/d (barrels of oil per day). Workovers at the wells Cheal-A11 and B6 were recently completed and the wells are now back in production and producing from the Urenui formation, the firm said.

A second phase of the planned workover programme is scheduled to begin in late October this year.

Meanwhile, the Cheal-A7 well will be converted to a water injector in the Cheal A pool, which will target the Urenui and Mt. Messenger intervals.

Perforations and rig

As part of this campaign, perforations will be added to the Urenui formation in the Cheal-B7 and B10 wells that are currently producing from the Mt. Messenger formation, and the Cheal-B5 well will be reinstated as a producer with artificial lift to produce from both formations.

A rig is being mobilised onto the Cheal-E2 well to install an artificial lift system to provide continuous flow from the well, the firm added.

The Cheal E waterflood programme has been a success and has now been expanded to include the conversion of the Cheal-E4 well to a water injector in two Mt. Messenger formation intervals, which is anticipated to sweep oil towards the Cheal-E1 producer well from the southern area of the field, Tag also revealed.

Tag also revealed in the regulatory release that six of the nominees listed in TAG Oil's management information circular proposed by management for election to the board of directors were duly elected.

Tag  Oil shares nudged up over 2.6% to stand at C$0.385.


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