Tag Oil has said oil has been discovered in the Sidewinder-1 exploration well in New Zealand's Taranaki Basin, which is located within the company's 100%-controlled, Broadside exploration permit PEP 38748.
The Sidewinder-1 well was drilled to a total depth of 1,601m, and encountered 14m of net (22m gross) oil-bearing sandstones in the Mt Messenger Formation.
The company said that electric logs indicate excellent reservoir qualities, with average porosities of 22.5% and oil saturations of 60%.
The drill rig will now move to the Cheal Mining Permit to initiate drilling of the Cheal-BH-1 horizontal well.
This well, with a total measured depth of 2,325m, including a 600m horizontal section, will be drilled into the proven producing area of the Cheal A block, and target the widespread turbidite fan deposits identified in the Mt Messenger Formation.
Cheal-BH-1 will be completed with a multi-stage fracture treatment along the horizontal section.