TAG Oil achieves production goals, secures drilling rig for Egyptian well

World Oil Staff June 19, 2023

(WO) – TAG Oil Ltd. provided an operations update at the BED-1 Field in the Western Desert, Egypt.

BED 1-7 well production

Since initial flowback of the BED 1-7 well on April 23, 2023, the well started by unloading to surface completion fluid from the fracture stimulation and formation oil under natural flow. The Company temporarily shut-in the well to install production tubing and down-hole Electric Submersible Pump ("ESP").

The BED 1-7 well started production on May 19, 2023, from the Abu-Roash "F" ("ARF") reservoir with the ESP pump at rates of 150 to 200 barrels of fluid per day and continued to unload remaining fracture fluid with gradual increase of formation oil over the first week. Pump speeds and surface choke adjustments were made to achieve a stabilized rate of production.

Over the past two weeks, down-hole pump intake pressure and production stabilized at an average rate of 140 bopd with about 5% water content at a constant ESP pump speed and wellhead choke of 10/64". The Company intends to maintain the same pump speed and choke size to monitor the well's performance for the next 30 to 60 days. Cumulative oil production from the well to date is over 4,000 bbl of 23-degree API Oil.

The performance of the BED 1-7 vertical well test has achieved the company's objectives for the well, including the Diagnostic Fracture Injection Test (DFIT) pressure leak-off for indications of reservoir parameters, fluid samples from the ARF, successful completion of a large single-stage fracture treatment on the ARF, and inflow performance testing of the stimulated well.

The Company also learned a significant amount about the availability, quality and delivery of materials and services in the Western Desert of Egypt, which will be important for implementation of the new horizontal well and working with local partners to ensure access for equipment and personnel in field operations and establishing timeline for future operations in the BED-1 Field.

TAG Oil T100 horizontal well

The Company was successful in securing a suitable drilling rig for the first horizontal well, BED4-T100 ("T100"), designed with a multi-stage fracture stimulation completion of the ARF formation. The rig will be mobilized from its current location in the Western Desert by mid-July and is scheduled to commence drilling shortly after.

The well design includes a vertical pilot assessment well for potential coring, open-hole logging, formation imaging, pressure measurement and fluid sampling, followed by cement plug-back of lower vertical pilot hole and whip-stock drilling of build and lateral horizontal sections of the T100 new well in the ARF reservoir.

Information will be collected during the drilling of the well including mud logging and drill cuttings to assess the reservoir quality across the lateral, which will be used in conjunction with the work completed on the geo-mechanical properties and 3D seismic interpretation in the area to design the well completion.

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