Australia is recognized by the international oil and gas community to be safe and stable, with conscientious political and governmental policies. It’s a country rich in natural resources, with the largest oil and gas reserves in the Asia-Pacific region, and its unexplored plains provide a tremendous growth platform for TAG Oil and its shareholders. Premium oil prices, a natural gas market that’s experiencing steady growth, proven production, vast reserves, and extensive infrastructure all combine to make Australia a great place for TAG Oil to do business.
The Surat Basin is particularly attractive to TAG Oil’s mission of exploring for oil in Australia. The Basin is lightly explored, but encompasses a proven light-oil discovery trend, including the Moonie Oil Field, which has produced ~25 mmbbl to date. It has well-developed infrastructure, and has potential plays on two levels.
The first is the Hutton Sand and Precipice Conventional Play at ~2000m depth: Located on TAG Oil’s PL 17 are the undeveloped Bennett and Leichhardt oil fields, discovered in the 1960s and awaiting the application of modern technology and equipment to extract commercial levels of oil. Then deeper in TAG’s permit, is the high-impact Permian Play opportunity. The Permian formation, which lies about 1,000 meters lower than the Surat’s conventional prospects, is the primary unconventional tight gas/condensate play opportunity within PL 17. It has similar characteristics to the United States’ Permian play, which has produced a cumulative 28.9 billion barrels of oil and 75 TCF of gas.