TAG Oil's targets onshore gas in Taranaki Basin

TAG Oil’s Cardiff-3 well located in Petroleum Mining License 38156 was spudded on September 2, 2013 and is presently being drilled at a depth of approximately 1,000m. The Cardiff-3 well will take approximately 30 more days to reach its total projected depth of 4,900m.

Cardiff-3 is the first of three back-to-back deep wells being drilled (Cardiff-3, Heatseeker-1 and Hellfire-1) by TAG.

All three wells are situated within the Taranaki Basin's main deep discovery fairway, where proven producing reserves of 6.9 TCF of gas and 372 million barrels of oil/condensate have been discovered in the Eocene-aged Kapuni Formation so far.

These deep wells are part of TAG's 11 well drilling campaign in Taranaki, which will be completed over the next six months. This program consists of a combination of development drilling, appraisal and exploration drilling: TAG currently has two drill rigs actively operating, with a third rig to begin operating on TAG controlled land shortly.

Combined, the assessed "mid-range" resource potential for the Cardiff, Heatseeker and Hellfire prospects is 477B cubic feet of natural gas and 18M barrels of associated condensates.