Cheal Production and TAG Development Activities Continue as Planned:
Clarification on Incorrect Reports in New Zealand Media.
Vancouver, B.C. – November 21, 2011 – TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), a Canadian-based production and exploration company with extensive
operations in New Zealand, advises the Taranaki Daily News has incorrectly
reported that TAG had stopped production at the Cheal Oil and Gas Field.
This article entitled “Drilling opposition puts 42 out of work” reported that “TAG Oil
Ltd. stopped production while it waits for resource consent for 18 new wells at its
Cheal sites near Stratford.” This report is inaccurate.
TAG wishes to clarify that production has not stopped at Cheal or at Sidewinder and
that all other Taranaki operations at both oil and gas fields continue uninterrupted.
Other than the planned drilling of TAG’s Cheal-B6 well active operations presently
underway include:
Testing operations presently underway:
Cheal-A8 Cheal-C1
Cheal-B5 Cheal-C2
All four Sidewinder wells
Workover operations presently underway:
Cheal-A1 Cheal-B1
Cheal-A2 Cheal-B2
Cheal-A4
The report by Taranaki Daily News correctly reports that there is a delay to one well
(Cheal-B6), which was planned to be drilled prior to the end of 2011. This delay
relates to a hearing with the Stratford District Council to approve the consents
requested for TAG to continue drilling up to an additional 18 wells at Cheal.
“Although certain media reports were incorrect and concerning when read, TAG is
proud of what has been accomplished to date at Cheal and Sidewinder, Commented
TAG Oil CEO, Garth Johnson. “We are pleased that the consenting process is well
underway at Cheal and we expect to have resolution shortly. To put this in
perspective, the consenting delay reported at Cheal relates only to the final well
planned for this year, after 10 consecutive discovery wells at Cheal and Sidewinder.
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TAG is still hopeful to spud the Cheal-B6 well prior to the end of the year if the
consenting process is completed shortly. TAG continues to work hard to conduct all
operations to the highest standards possible and we realize it’s important to New
Zealand and TAG to conduct its business responsibly.”
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and
exploration company with operations focused exclusively in New Zealand. With
100% control over all its core assets, including oil and gas production
infrastructure, TAG is anticipating substantial oil and gas production and reserve
growth through development of several light oil and gas discoveries. TAG is also
actively drilling high-impact exploration prospects identified across more than
1,300 sections of land in the onshore Taranaki and East Coast Basins of New
Zealand's North Island.
In the East Coast Basin, TAG Oil is pursuing the major unconventional resource
potential estimated in the fractured shale source-rock formations that are
widespread over the Company’s acreage. These oil-rich and naturally fractured
formations have many similarities to North America’s Bakken Shale source-rock
formation in the successful Williston Basin.
Contact:
Dan Brown or Garth Johnson
TAG Oil Ltd., 1-604-682-6496
Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts are forward-
looking statements that involve various risks and uncertainty affecting the business
of TAG Oil. Such statements can generally, but not always, identified by words such
as “expects”, “plans”, “anticipates”, “intends”, “estimates”, “forecasts”, “schedules”,
“prepares”, “potential” and similar expressions, or that events or conditions “will”,
“would”, “may”, “could” or “should” occur.
All estimates and statements that describe the Company's objectives, goals, or future
plans relating to the seismic, testing and drilling programs in Taranaki are forward-
looking statements under applicable securities laws and necessarily involve risks
and uncertainties including, without limitation: risks associated with oil and gas
exploration, development, exploitation, production, marketing and transportation,
volatility of commodity prices, imprecision of reserve estimates, environmental
risks, competition from other producers, and changes in the regulatory and taxation
environment. These forward-looking statements are based on certain factors and
assumptions, including factors and assumptions regarding the management’s views
on the oil and gas potential in the Permits, the success of any operations, and the
costs necessary to complete the operations.
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Actual results may vary materially from the information provided in this release,
and there is no representation by TAG Oil that the actual results realized in the
future will be the same in whole or in part as those presented herein.
Other factors that could cause actual results to differ from those contained in the
forward-looking statements related to upcoming operations, production forecast
modeling and other items, are also set forth in, filings that TAG Oil and its
independent evaluator have made, including TAG Oil’s most recent reports in
Canada under National Instrument 51-101.
TAG Oil undertakes no obligation, except as otherwise required by law, to update
these forward-looking statements in the event that management’s beliefs, estimates
or opinions, or other factors change.
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