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TAG Oil Ltd (OTCMKTS:TAOIF) Stock In Focus After Latest News

Ian Leigh , , , ,

Canadian-based international oil and gas exploration company, TAG Oil Ltd (OTCMKTS:TAOIF), on May 9, 2023, announced the successful re-entry of a vertical well, BED 1-7, at Badr Oil Field in the Western Desert, Egypt. The firm perforated Abu Roash “F” formation and conducted Diagnostic Fracture Injectivity Test. Further, the reservoir was fracture stimulated with 110 tons of sand treatment with a positive response, which confirmed the projected performance and reservoir models.

Trading Data

On Tuesday, TAOIF stock slid 5.31% to $0.5026 with more than 39.15K shares, compared to volume of 16.79K shares. The stock moved within a range of $0.4925 – 0.5415 after opening trade at $0.5346.

TAG Oil Achieves First Oil Production in the Badr Oil Field, Western Desert, Egypt

The well unloaded to the surface under natural flow and then cleaned up about 40% of the injected fracture fluid with the presence of 230 API oil. Tag Oil confirmed that the net cumulative oil produced during short flowback was over 500 barrels, connected to the BED-1 field’s production facilities. Plans are ongoing to secure a drilling rig for drilling the first horizontal well designed with a multi-stage fracture stimulation. The firm confirmed obtaining all necessary permits and that site construction is underway.

Toby Pierce, CEO of TAG Oil said that the activity is the first step in establishing oil production from ARF Formation, an oil-rich source rock covering a significant portion of 107 Sq. Km. BED-1 concession. Pierce added that the production results confirm the economic feasibility of the important resource play in the Western Desert of Egypt.

Ian Leigh

Ian Leigh is a specialist in analyzing stocks, SEC and OTC filings, and financials of public and privately-held companies. He has played a significant role in M&A activity, consulting with publicly-held firms on acquisitions and divestitures. He also consults on valuations and branding. He lectures at major universities and teaches at specialty financial schools.