TAG Oil Ltd (TSE:TAO) updated on the Pukatea-1 exploration well in New Zealand, where earlier this month it said it had found a potential oil pay in the well's secondary Mt Messenger target.
Today, it said the well had reached a final total depth of about 3,100 metres (m) after penetrating a (faulted) thickened overlying interval of basement rock but without hitting the Tikorangi limestone formation.
The firm said it was encouraged by the intermittent hydrocarbon shows recorded within the section between about 2,520m and about 2,680 m measured depth, and will run electric wireline logs to evaluate these and the entire interval to about 3,100 m.
TAG says it will now initially focus on the Mt. Messenger oil zone and complete the well to enable a future production test.
This will allow the company to evaluate the production potential of the Mt. Messenger oil zone, and a successful test could result in restarting production from the currently suspended Puka oil field, the company said.
"We are encouraged by approximately 160 m of intermittent hydrocarbon shows below the Mt. Messenger section," said Toby Pierce, TAG Oil's chief executive.
"A similar interval is present in several of the offsetting wells to Pukatea-1, specifically Hu Road-1 and Waihapa-6, and wireline logs will give us more information and clarity around this interval and whether it is worth investigating further."
Pierce also thanked the team for getting the well drilled safely, on budget and on schedule.