TAG Oil Expands Operations with New Egypt Acquisition Strategy

TAG Oil's Current Operations and Expansion Plans

TAG Oil Ltd. is enhancing its operational efficiency and expanding its geographic footprint within the oil and gas sector. The company's recent updates reveal significant developments in the Badr Oil Field, particularly the BED4-T100 horizontal well, which is consistently producing an average of 200 barrels of fluid daily, with a water cut of 35 percent. Despite some intermittent operations over the past two months, the team has focused on pressure build-up assessments and optimizing the lift system, contributing to stabilizing production rates.

Optimizing Production from the BED4-T100 Well

The T100 well has transitioned from natural flow to utilizing a jet pump to facilitate the recovery of substantial volumes of fracture fluid. Now, it is equipped with a sucker rod pump designed for long-term stable production. Cumulative oil production from this well has surpassed 15,000 barrels, and TAG Oil has begun shipments to third-party facilities for refining. Continuous evaluation of fluid samples and drill cuttings is ongoing to optimize production efficiency further.

Future Plans for the BED1-7 Well

TAG Oil's future plans include bringing back online the previously completed BED1-7 vertical well. This strategic move follows a thorough pressure build-up analysis, with the intention of equipping it with a sucker rod pump similar to T100 during the upcoming quarters. Additionally, several new drilling sites are being planned for Q1-2025, which will target areas with high-intensity natural fractures, promising good initial oil volumes.

Exciting New Acquisition in Egypt

A notable step in TAG Oil's strategic expansion is the recent approval of a "No Objection Letter" from an industry operator concerning a significant acquisition in Egypt. This opportunity involves a substantial concession in the Western Desert, which TAG Oil has thoroughly evaluated and is eager to pursue. The binding proposal, submitted earlier this year, aims to secure the desired interest in this promising area, subject to regulatory approvals.

Details of the Target Concession

The targeted concession spans approximately 2,000 square kilometers (equivalent to 512,000 acres), significantly larger than TAG Oil's current operations in the BED-1 Concession. The unconventional Abu Roash "F" (ARF) reservoir shows promising characteristics, paralleling those found in the existing BED-1 site, which has a reported estimated oil-initially-in-place of 532 million barrels. Completing this acquisition will fortify TAG Oil’s position in the unconventional resource sector in the region.

Seismic Analysis and Future Opportunities

Comprehensive 2-D and 3-D seismic data indicate that the targeted area has several operational wells, presenting potential for both production optimization and further completions. These insights have led to the identification of multiple drilling locations and side-track opportunities, enhancing the potential for future extraction initiatives.

Continued Updates and Shareholder Engagement

TAG Oil commits to keeping stakeholders informed about the progress of the acquisition process, alongside details regarding the final definitive agreement. The company's proactive communication strategy ensures that shareholders are updated on developments that could impact the company’s growth and operational strategies.

About TAG Oil Ltd.

TAG Oil is an international oil and gas exploration company based in Canada, focusing on the Middle East and North Africa regions. The company emphasizes the importance of strategic acquisitions and optimizing current operations as it seeks to build its resource base and enhance shareholder value.

Frequently Asked Questions

What is the latest update on TAG Oil's operations?

TAG Oil has reported steady production from the BED4-T100 well and plans to bring another vertical well back online for further oil extraction.

What exciting acquisition is TAG Oil pursuing?

TAG Oil is aiming to acquire a significant interest in a concession located in the Western Desert of Egypt, which could greatly expand their operational footprint.

How does the new acquisition in Egypt benefit TAG Oil?

The acquisition will potentially provide TAG Oil with access to substantial oil resources and enhance its positions in unconventional and conventional oil production.

Where does TAG Oil currently operate?

TAG Oil operates primarily in the Middle East and North Africa, focusing on oil exploration and production opportunities.

What are TAG Oil’s future drilling plans?

TAG Oil plans to drill new vertical wells targeting natural fractured areas with promising oil output potential in the upcoming quarters.

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