By TAG Oil Ltd.
TAG Oil Ltd. (TSXV:TAO; OTCQX:TAOIF; FSE:T0P), a Canadian-listed international oil and gas company, identifies significant untapped potential in the BED-1 field in the Western Desert of Egypt. Geological data highlights vast opportunities within the Abu-Roash “F” (ARF) formation, a key focus of TAG Oil’s development strategy in the region. This formation remains central to ongoing efforts aimed at unlocking its full potential and driving additional value for shareholders.
Download the BED-1 Oil Field Upside Development Presentation
Targeting the ARF: A strategic development plan
The Company’s current strategy involves the drilling of 18-20 horizontal wells, each completed with multi-stage fracture treatment. According to independent evaluator, RPS Energy Canada Ltd., the ARF’s P50 oil volumes amount to an impressive 531.5 million barrels within the BED-1 concession area. Although TAG’s efforts are concentrated on the east-central portion of BED-1, where well control is more established, and the oil-in-place (OIIP) P50 volumes are estimated at 178.3 million barrels.
With the Company having successfully completed their first vertical and horizontal wells; TAG is now gearing up for the next phase of development with renewed confidence.
BED 4-T100 Horizontal Well: A new benchmark
TAG Oil’s current T100 horizontal well in the BED-1 ARF is producing results that stand shoulder to shoulder with some of the world’s top unconventional reservoirs. To put this into perspective, while the Eagle Ford Shale – a leading shale play in the U.S. – averages 32 barrels of oil per day (BOPD) per 100 meters of horizontal stimulated lateral, TAG’s first horizontal well, BED4-T100 is producing over 100 BOPD per 100 metres.
The initial horizontal drill of the 308-metre ARF lateral section has penetrated an over-pressured reservoir with excellent porosity and permeability, showing clear signs of free oil flow to the surface. The Company successfully executed a 12-stage hydraulic fracturing completion, placing 100% of the planned proppant in every stage. The results were encouraging, with good oil shows in sample cuttings, elevated gas readings, and higher-end hydrocarbons indicating a strong presence of oil.
TAG Oil’s T100 well rates suggest a 1,000-metre ARF well could achieve an IP rate of 1,200 BOPD.
TAG Oil’s plan for executing the plan to unlock BED-1’s potential
- BED 1-7 Vertical Recompletion: Successfully completed, producing more than 1.25 BOPD per meter.
- BED4-T100 Horizontal Well: A success, currently producing over 1.0+ BOPD per meter.
- Future Drilling Plans: TAG Oil has identified 18-20 follow-up drill locations at 400-meter spacing in the BED-4 and BED-1 reservoir areas, with plans to drill wells ranging from 800-1,000 meters in length. These are forecasted to produce between 960-1,200 BOPD per well.
- Potential Expansion: The Company sees potential for down spacing future fairways, which could increase the number of wells and extend development into high-saturation areas outside the current region, potentially raising the well count to over 40.
Comparing to Eagle Ford: A strong performance
In the Eagle Ford Shale, wells typically have an initial production (IP) rate of around 740 BOPD for a 2,284-meter horizontal lateral length, with an average production of 32 BOPD per 100 metres. As of April 2023, 93% of the 27,000 horizontal wells drilled in Eagle Ford remain in production.
At TAG Oil, our current T100 well rates indicate that a full-length 1,000-metre ARF well has the potential to produce at an IP rate of 1,200 BOPD. This exceptional performance not only positions TAG Oil strongly against other unconventional reservoirs but also underscores the tremendous potential of the BED-1 field.
Visit www.tagoil.com for more in-depth look at TAG Oil’s developments. TAG Oil is publicly traded on the TSXV under the symbol TAO and on the OTCQX under the symbol TAOIF.
This is third-party content provided by TAG Oil Corp. (TSXV:TAO; OTCQX:TAOIF; FSE:T0P). Please see full disclaimer here.
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(Top photo of the Sphinx in Egypt: Adobe Stock)
