This morning, Egypt, noted Research Capital analyst Bill Newman in a January 3 report.announced an update on its drilling at the BED4-T100 horizontal well in the Badr Oil Field in the Western Desert of
In Tag's second drilling endeavor to drill the horizontal section, targeting the Abu-Roash "F" reservoir, the company faced bottlenecks. The company also dealt with mechanical issues with the drilling rig itself.
Newman pointed out that the position of the Abu-Roash "E" (being directly above Abu-Roash "F") is what spurred the difficulties. However, Newman said, "TAG is hopeful that with the upgrades to the drilling rig and using an oil-based mud system, the company should have drilling success with the third lateral."
Moving along, Tag will aim to "drill a third lateral from the intermediate cased section of the well at ~2,650 meters using an oil-based mud system (versus water-based), with flow test results now expected in March," Newman wrote.
With this, Newman reiterated his Speculative Buy rating and gave the company a price target of CA$1. With the current price of CA$0.38, Newman noted that this implied a 163.2% projected return.
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- [Tag Oil Ltd.] is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- [Katherine DeGilio] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
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Disclosures for Research Capital, Tag Oil Ltd., January 3, 2024
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