TAG Oil's Taranaki Basin Gas Pipeline Almost Complete

In a development that could help TAG Oil monetize future oil and gas wells drilled in the Cheal-E development area in New Zealand's Taranaki Basin, the company has nearly completed the pipeline connecting the development area to main production area.

TAG said that the pipeline construction connecting the Cheal-E development area to TAG’s main Cheal-A production infrastructure is nearly complete. The TAG-led, NZ$4.5 million ($3.3 million) project was completed on budget and ahead of schedule.

“The new pipeline is an important addition to TAG’s overall infrastructure in the Taranaki region,” said Max Murray, TAG Oil’s New Zealand Country Manager. “It allows us to significantly reduce operating costs even while generating additional revenues, and it gives us the ability to quickly monetize future oil and gas wells drilled in the Cheal-E development area.”

“Along with the benefits of increased production revenue from the sale of gas, we are very pleased to eliminate the need to flare the solution gas at Cheal-E onsite,” Max Murray further commented. “The additional associated gas will be sold under an existing Gas Sales Agreement.”