With the completion of TAG Oil’s Taranaki Basin production facility expansion and associated pipeline, all but six wells capable of commercial production have now been tied into the facility and optimized for long-term production. With all production facilities (100% owned and operated by TAG) now in place, TAG can rapidly commercialize any new discoveries and leverage its strong Taranaki-region operational position. This includes maximizing TAG Oil’s position as a completely independent processor, transporter, and marketer of the oil and gas the company discovers, extracts and produces.
TAG’s current production from the shallow Miocene section within the Cheal and Sidewinder fields varies between 2,500 to 3,000 barrels of oil equivalent (BOE) per day, with an average baseline production of 2,700 BOE’s per day over the past ten days. Baseline production is expected to increase as the remaining shut-in wells are brought on stream. Any success arising from the ten new wells planned to be drilled by year’s end could materially increase this production figure.
TAG’s current production in Taranaki consists of roughly a 46/54 split of light oil and natural gas. TAG receives Brent Crude oil prices that averaged 15% higher than North American pricing year-to-date, and a thriving New Zealand natural gas market with prices at 34% higher than North America.