Canadian exploration and production company TAG Oil has discovered and processed oil and gas in the Taranaki Basin of New Zealand after completing the Pukatea-1 well.
The well is located in petroleum exploration permit 51153.
During a flow test at the Mt Messenger formation, the company reported that 12.9m of oil and gas bearing sands were perforated. It flowed naturally at a rate of up to 600 barrels of oil per day (b/d) of fluids on initial well clean-up and at a stabilised rate of around 276 barrels of oil equivalent per day (boe/d) over a 12-hour test period.
The company has combined oil produced during the test with another batch of oil produced in the area and sold it to the market.
TAG Oil CEO Toby Pierce said: “This very encouraging flow test paves the way for another potential TAG Oil-operated, high netback oilfield development in New Zealand.
“With TAG Oil’s current daily net production at around 1,297boe and with Brent Oil prices currently more than $68 a barrel, we continue to realise solid cash flows as we optimise our Taranaki operations with a view to increase production within our core operating areas.”
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By GlobalDataTAG Oil holds a 70% interest in the petroleum exploration permit, which also contains the shut-in Puka-2 oil well.
The company expects to monetise the Puka-2 well upon field development.
