An anonymous director reports

TAG OIL PROVIDES UPDATE ON BED4-T100 WELL

TAG Oil Ltd. is updating on drilling progress of the BED4-T100 horizontal well in the Badr oil field (BED-1) in the Western Desert of Egypt.

As reported in the Nov. 15 update, drilling continued from the intermediate cased section of the well and reached a measured depth of 3,312 metres in the Abu-Roash F (ARF) at a hole angle of 90 degrees. However, geomechanical hole stability concerns in the upper section of the hole in the Abu-Roash E (ARE), an overpressured formation with layered carbonate and shale lithology changes, were coupled with mechanical issues with the drilling rig mud system. This provided challenges to condition the build section of the hole past 3,200 metres to be able to run the casing liner, and multiple attempts to drill out past this point and continue into the ARF target reservoir were encumbered.

The company elected to plug back this hole section, initiate repairs of the drilling rig shale-shakers and tanks on the rig mud system, and review drilling procedures to isolate the ARE zone of the hole and landing the casing liner in the ARF carbonate reservoir zone prior to proceeding with drilling the lateral.

Next steps include redrilling from the intermediate cased section of the T100 well at approximately 2,650 metres with an oil-based mud system and adjusting the directional drilling services and tools with the goal of drilling a smoother, stable build section in the ARE and isolating it prior to drilling the ARF lateral section.

As previously disclosed, the ARF target reservoir in the T100 vertical pilot well and in the initial lateral section encountered very good oil shows with high hydrocarbon gas readings and good indications of primary porosity. These drilling challenges are not projected to impact the prospect of the ARF resource oil play.

Repairs on the drilling rig and planning for the next leg are under way and completion of the drilling phase is projected to be done next month. The drilling rig will then be released and a rigless well completion phase with fracture stimulation of the ARF will start immediately after. TAG Oil will continue to provide regular drilling updates, as necessary.

The company will be hosting a live conference call on Thursday, Jan. 4, 2024, at 7 a.m. PST/10 a.m. EST to discuss this drilling update. Interested parties will be able to access the conference call via live teleconference in listen-only mode by dialling:

Canada/United States toll-free:  1-800-319-4610

International toll:  1-604-638-5340

Callers should dial in five to 10 minutes prior to the scheduled start time on Jan. 4, 2024, at 7 a.m. PST/10 a.m. EST.

A replay of the conference call will be available on demand following the conclusion of the live event. In addition, questions can be forwarded by e-mail in advance of the conference call to info@tagoil.com.

About TAG Oil Ltd.

TAG Oil is a Canadian based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.

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