TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to report that the Company's Cheal infrastructure expansion project in the Taranaki region of New Zealand has been completed. Together with TAG's existing production infrastructure and pipeline network, the Company now has the capacity to fully commercialize the successes (past and future) of its onshore Taranaki Basin assets.
This major expansion establishes TAG Oil as a completely independent processor, transporter, and marketer of the gas the Company discovers, extracts and produces, opening significant new opportunities to supply the thriving Taranaki natural gas market.
With this completed infrastructure expansion, previously shut-in wells from TAG's successful 2012 shallow drilling program are now being placed into long-term production. The Company will continue to identify areas of the new infrastructure that requires optimization, as final commissioning work continues in the coming weeks. TAG's total production capability from tested shallow wells and the new liquids potential of the expanded gas plant is in excess of 5000 barrels of oil equivalent per day.
It is important to remember that the company does not have to drill additional wells to increase production as they had production "behind pipe" which was awaiting the increased handling capacity, which the company recently completed, to be brought online. We should see increased production and cashflows and hopefully a higher share price.
Disclosure: I am long OTCQX:TAOIF.