.55 interst in 200mbo prospect early april, page-2

Onshore possible 200 million barrels less than 20km from largest city in Sth Island of NZ.

Due to the proximity of the nearby now established landfill site and there is transport system into the kate valley site for heavy machinery.

Rig can be transported right up onto site-Hence low drilling costs(approx 600k)....


"There will be daily heavy vehicle traffic associated with Petroleum exploration activity exploration and drilling. There will be substantial daily heavy vehicle traffic during the establishment and completion stage of the work. Should any viable oil reserves be discovered there would be a daily heavy vehicle load for oil tankers and associated traffic. For all stages, a reasonable estimate of maximum heavy vehicle return trips would be ten per day, with an average of around five.�

Perhaps the most exciting prospect that TAG currently has is "Kate", which is located in the onshore portion of one of our Canterbury permits. The Kate prospect is located at a surface "anticline" which is essentially a 15 km2 "mound", protruding out of the surrounding Canterbury Plains. A number of high grade oil seeps are visible at the surface along the perimeter of this anticline. The seeping oil has been confirmed as "thermogenic" Initial 2-D seismic has been completed and has confirmed that the anticline formation continues at depth.

TAG�s volumetric calculations indicate as much as 200 million barrels of oil may be associated with this structure.