TAG oil pipeline nears completion

Oil and gas operator TAG Oil Ltd., listed on the Toronto Stock Exchange (trading symbol TAO), and in the US on the OTCQX Market (trading symbol TAOIF), reports that pipeline construction connecting the Cheal-E development area to TAG's main Cheal-A production infrastructure is nearly complete. The TAG-led, NZ$4.5 million (US$3.3 million) project was completed on budget and ahead of schedule.

"The new pipeline is an important addition to TAG's overall infrastructure in the Taranaki region," said Max Murray, TAG Oil's New Zealand Country Manager. "It allows us to significantly reduce operating costs even while generating additional revenues, and it gives us the ability to quickly monetise future oil and gas wells drilled in the Cheal-E development area."

Cheal-E to Cheal-A Site Pipeline

The 4 in. pipeline connecting the new Cheal-E site to TAG's Cheal-A site production facility is undergoing pre-commissioning and rigorous testing now. It will shortly, over the next week, move into the commissioning phase, at which point a three-phase well stream of fluids (oil, gas and water) will be processed through the Cheal-A site production facility.

In addition to the pipeline installation, an 11 kV HV electrical cable and a fibre optic cable have been installed to improve the power supply and communications between the Cheal-E and the Cheal-A production sites.

Adapted from press release by Hannah Priestley-Eaton

Published on 15/05/2015

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