Canada-based oil and gas company TAG Oil is undertaking an extensive geotechnical and engineering review of the Taranaki development and exploration acreage in New Zealand, in order to commence the next round of drilling later this year.
Giving an update on its Taranaki Basin oil and gas production, operations and the future drilling activity, TAG said that it is focusing on low-expenditure and in-field production optimisation opportunities to increase production.
The company will begin the next round of drilling at its Cheal and Sidewinder Exploration and Development acreage, based on the geotechnical and engineering review.
Average net production from the Cheal oil field for the first 15 days of April was 1,970 barrels of oil equivalent per day (boed), an increase of 127boed compared to March.
Permit-wide 3D seismic coverage shows that the Cheal permit area has more than 70 development drilling locations, which have been identified and high graded.
TAG expects the Sidewinder acreage to have the potential to develop another field similar to Cheal.
The company plans to begin drilling of the SW-1B and SW-2B wells in Sidewinde later this year, and has assembled a 22,000-acre exploration play area around its gas discovery.
Both the wells within the Sidewinder B area will target oil-prone prospects in the Miocene-aged, Mt. Messenger formation, at approximately 2,000m depth.
TAG has previously drilled seven shallow gas wells on the Sidewinder A site.
