Source: Bill Newman
May 12, 2023 (Investorideas.com Newswire) An oil flow rate for this well in Egypt is expected to be announced this June after 30 days of production testing, noted a Research Capital Corp. report.
TAG Oil Ltd. (TAO:TSX.V; TAOIF:OTCQX) successfully fracture stimulated and tested its BED 1-7 well in Egypt's Badr oil field, reported Research Capital Corp. analyst Bill Newman in a May 9 research note.
"The well is expected to be on production shortly," Newman wrote.
Also of note, the analyst pointed out this oil and gas company offers investors a significant, or 90%, potential return. This is indicated by the difference between TAG's current share price of CA$0.71 and Research Capital Corp.'s target price on the company of CA$1.35 per share. TAG Oil is rated as a Speculative Buy.
Results of Work Performed
Perforating roughly 12 meters (12m) of the Abu Roash "F" formation's 40m, TAG performed a diagnostic fracture injectivity test on the vertical BED 1-7 well. Subsequently, the British Columbia-based company frack stimulated it with 110 tons of fluid.
As a result, "the well flowed naturally to surface, recovering about 40% of the completion fluid and about 500 barrels of 23-degree API oil over a short time period," Newman wrote. "The test [results] confirmed the company's reservoir models and projected performance."
TAG then tied BED 1-7 into the BED-1 facilities. It also installed production tubing and an electrical submersible pump (ESP) to regulate the well's flow and ultimately get it to a stable rate.
Newman commented that "although it would have been nice to have an oil flow rate result, it is not unusual for a well to require an ESP before being able to achieve stabilized production."
Horizontal Well in the Works
Using the results of the BED 1-7 well and its new three-dimensional seismic survey, TAG has honed the design of its first-ever multistage fracture stim horizontal well: T100. Lease construction is underway, and the energy company is in the process of securing a drilling rig.
TAG Oil expects to spud T100 next month, June 2023.
What To Watch For
The next potential catalyst for TAG, which could be major, according to Newman, is expected this June in the form of 30-day flow test results from the BED 1-7 well.
Another event scheduled for next month is the spudding of the T100 horizontal well, to be followed, at an undetermined date, by flow test results.
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