Tag Oil Ltd., Vancouver, BC, reported the successful drilling and flow testing of its Cheal-E8 exploration well, which will now be tied-in to the company’s existing production systems as a permanent producer. The well was drilled on the company’s operated Cheal East permit (PEP 54877) in New Zealand’s Taranaki basin. The well was drilled to a total measured depth of more than 2,000 m.
The well’s primary objective was to test the potential of the Urenui formation, with the deeper Mt. Messenger formation as the secondary objective. Tag Oil recorded 17 m net pay of Urenui sands and 4 m net pay of Mt. Messenger sands.
Following the completion of the Urenui zone, Cheal-E8 naturally free flowed oil and gas on choke at an average rate of 318 boe/d over a 4½-day test, during which no water production was observed.
The Mt. Messenger formation also is estimated to be commercial, and will be completed in the future, the company said. Next the company will drill the Cheal-D1 well on PEP 54877. Tag Oil holds 70% interest in PEP 54877.
