Canadian oil explorer Tag Oil announced a 450% increase in reserves at the Cheal Mining Permit, onshore Taranaki Basin, New Zealand.
After an independent assessment, the firm assigned net proved and probable reserves remaining of 651,000 barrels of oil and associated gas reserves of 258mcf, together worth $29.43m.
Tag attributed the increase in value and reserves to increased recovery, a revised projected future well performance and a revised oil price forecast.
The Cheal oil pool produces solely from the Mount Messenger Formation at an approximate depth of 1,800m.
The firm acquired 100% control of the permit in October 2009 and, based on the success of the Cheal A-7 well, TAG is planning additional fracture treatments in existing Cheal wells.
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