TAG Oil Ltd. (OTC: TAOIF) Stock In Focus After Recent Development

There were a significant number of companies that had come into focus among investors following a key announcement on Monday. One of those companies was TAG Oil Ltd. (OTC: TAOIF), which announced that it had hit a major new milestone in its on-going development and exploration activities at the Badr Oil Field. The company revealed that it had been successful in completing the drilling phase at the BED4-T100 horizontal well located in the Abu Roash ‘F’ limestone formation.

In the news release, the company announced that the well in question had penetrated an overpressurized reservoir, which had regions with high levels of permeability and porosity. During the course of the drilling activities, there were clear indications of the presence of free oil that was flowing into the surface. That was combined with a consistently high level of gas readings throughout the entirety of the ARF formation.

The possibly high gas-to-oil ratio and the high pressure at the ARF zone were expected to be two factors that could boost the production capacities of the T100 well. Due to the higher level of reservoir pressure and the high gas readings that had been seen during drilling, TAG Oil had also decided to adjust the lateral length to 308 meters. It had been done as a safety measure. It was also announced that preparations related to the final stage so as to start fracture simulation had also started.

The company announced that the personnel and equipment necessary to complete the job would be mobilized and brought to the well. TAG Oil revealed that it expected simulation to start at the well at some point in the middle of next month. The company also announced that it would continue to provide updates about the progress being made on that particular front as and when necessary.