TAG Oil Commences Drilling the Horizontal Leg of its BED4-T100 Well After Successfully Logging the Vertical Pilot Hole

Rhea-AI Summary

TAG Oil Ltd. has commenced drilling the horizontal portion of the BED4-T100 well in the Badr Oil Field in Egypt. The ARF section was approximately 50 meters in thickness and very close to the anticipated elevation. The horizontal well is expected to take three weeks to drill and extend over 1,000 meters. TAG Oil remains on track to complete the well and begin flow back testing in November 2023.

VANCOUVER, BC, Sept. 27, 2023 /PRNewswire/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) ("TAG Oil" or the "Company") is pleased to announce that it has commenced drilling the horizontal portion of the BED4-T100 ("T100") well in the Badr Oil Field ("BED-1") in the Western Desert of Egypt. TAG Oil successfully drilled the vertical pilot hole to a depth of 3,290 meters.  The Company recently performed open-hole logging, formation imaging, and pressure measurement, followed by cement plug-back of the lower vertical pilot hole. TAG Oil immediately proceeded into whip-stock drilling of build and lateral horizontal sections in the Abu Roash "F" ("ARF") reservoir.

The open hole logs showed very similar results to those completed over nearby offset wellbores in BED-1. The ARF section was approximately 50 meters in thickness and was very close to the structural elevation anticipated. The horizontal portion of the T100 well will target oil in the ARF unconventional tight, carbonate reservoir. The lateral section of the horizontal well is expected to take approximately three weeks to drill and extend over 1,000 meters. TAG Oil will then move to complete the T100 well and remains on track to be completed and begin flow back testing during November 2023. TAG Oil will provide detailed drilling and completion updates in due course.

Information obtained during the drilling of the T100 well, including mud logging and drill cuttings to assess the reservoir quality across the lateral section, will be used in conjunction with the work completed on the geo-mechanical properties and 3D seismic interpretation in the area to design the well completion and fracture stimulation program. Performance from the T100 well will be used for planning and executing future drilling plans that the Company expects to initiate by calendar Q1 2024.

About TAG Oil Ltd.

TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

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. All estimates and statements that describe the Company's operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. 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. TAG Oil undertakes no obligation, except as otherwise required by law, to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors change.

Exploration for hydrocarbons is a speculative venture necessarily involving substantial risk. The Company's future success in exploiting and increasing its current resource base will depend on its ability to develop its current properties and on its ability to discover and acquire properties or prospects that are capable of commercial production. However, there is no assurance that the Company's future exploration and development efforts will result in the discovery or development of additional commercial accumulations of oil and natural gas. In addition, even if further hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if the Company encounters unforeseen geological conditions. The Company is subject to uncertainties related to the proximity of any resources that it may discover to pipelines and processing facilities. It expects that its operational costs will increase proportionally to the remoteness of, and any restrictions on access to, the properties on which any such resources may be found. Adverse climatic conditions at such properties may also hinder the Company's ability to carry on exploration or production activities continuously throughout any given year.

References to "oil" in this press release include crude oil and field condensate.

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SOURCE TAG Oil Ltd.