TAG Oil Ltd. announced that it was formally awarded a petroleum services agreement (PSA) by Badr Petroleum Company to develop the unconventional Abu Roash “F” reservoir (ARF) in the Badr Oil Field (BED-1), which is a 107 km2 concession located in Egypt’s Western Desert.

Over the last months, TAG Oil successfully completed an evaluation of the data package provided by the Egyptian General Petroleum Corporation (EGPC) for BED-1. After extensive negotiations with EGPC, the company submitted its final letter of intent on May 29, 2022, to develop the formation in the BED-1 concession.

TAG Oil has conducted a detailed technical analysis of the geologic, geophysical and well production data of the target ARF zone, which is a deep, tight, low porosity, low permeability carbonate reservoir with varied fluid characteristics across BED-1.

The company has determined that there is a high probability of successful commercial development of the ARF reservoir by applying proven technologies including long-reach horizontal wells, hydraulic fracture stimulation and potentially other enhanced oil recovery production techniques.

“We are pleased to have reached our first important agreement in Egypt to develop this significant project. While the agreement contemplates a piloting period to prove its concept, the type of reservoir and anticipated development plan has previously delivered successful results in more challenging oil and gas reservoirs in Canada and the USA,” said Abdel Fattah Badwi, Executive Chairman of TAG Oil. “TAG Oil is strategically well positioned to pursue other oil and gas exploration and development opportunities that are currently being investigated in Egypt and other areas of the Middle East. The Company will keep you apprised of its progress in these initiatives as they arise.”