New Zealand and Australia-focused oiler TAG Oil Ltd (TSE:TAO) has suspended its Cheal-D1 exploration well after gas was found to be present, but not in economic quantities.
Based on tests and mapping, the company said that it may investigate the potential of side-tracking the well into an adjacent fault block in due course.
The well lies in the north of the firm's 70% working interest and operated Cheal East permit (PEP 54877) in the Taranaki basin of New Zealand and it was completed around five days ahead of schedule and under budget to a total measured depth of 2,400 metres.
All current drilling commitments on the Cheal East permit have now been met, said TAG.
Toby Pierce, TAG Oil's chief executive, told investors: "Needless to say, I am disappointed that this well did not contain commercial quantities of hydrocarbons; however, based on these test results and further mapping, we will investigate the potential of side-tracking the well into an adjacent fault block in due course.
"TAG will now focus on preparing to drill the high-impact Pukatea exploration well in fiscal Q4 2018, advancing its farmout activities and working on a range of optimization and exploitation opportunities."