TAG Oil Announces T-200 Well Reaches Total Depth and Reports Positive Abu Roash "F" Reservoir Log Results

TAG Oil's T-200 well in Egypt hit oil-bearing limestone; production test results due soon.

What the company is saying

TAG Oil Ltd. (TSXV:TAO, OTCQB:TAOIF, FSE:T0P) reports that its T-200 exploration well at the Badr Oil Field in Egypt reached a final depth of 4,160 metres, targeting the Abu Roash 'F' reservoir. The company highlights the presence of an oil-bearing interval between 4,102 and 4,160 metres, with 58 metres of limestone showing good oil indicators. Management emphasizes 14 metres of net oil pay with average porosity of 8%, reaching up to 10%, and notes evidence of natural fracture development and favourable permeability. Abby Badwi, Executive Chairman and CEO, frames the drilling as an important milestone for the BED-1 development program and stresses that operations were completed on budget. The tone is confident but measured, with claims limited to preliminary technical findings and a clear statement that production test results are pending. The company is proceeding immediately to completion and testing, with initial production test results expected later in October 2026. No commercial production or reserve figures are claimed at this stage.

What the data suggests

The T-200 well reached a total depth of 4,160 metres, intersecting the Abu Roash 'F' interval between 4,102 and 4,160 metres. Within this 58-metre limestone section, preliminary logs indicate 14 metres of net oil pay. Average porosity in the pay zone is 8%, with maximum values up to 10%, which is positive for reservoir quality. The presence of natural fractures and favourable permeability is asserted but not quantified. No flow rates, resource estimates, or economic data are disclosed, and all technical findings are described as preliminary. The company states that drilling was completed on budget, but no cost figures are provided. The evidence supports the presence of oil-bearing rock, but commerciality will depend on the results of the imminent production test. Disclosures are specific and appropriate for this stage, with all key technical facts stated.

Analysis

The announcement provides a factual and measured update on the drilling of the T-200 exploration well, with specific technical data such as depth, interval, net pay, and porosity. The tone is positive, highlighting the successful and on-budget completion of drilling and the presence of oil-bearing intervals. Most claims are realised and supported by disclosed measurements, with only a minority of statements being forward-looking (completion and testing to follow, results expected later this month). There is no exaggerated language or overstatement of commercial potential; the company refrains from making production or economic claims before testing is complete. The capital intensity flag is not triggered, as the only financial reference is 'on-budget operations,' and no large future outlay or long-dated benefit is discussed. The gap between narrative and evidence is minimal, with the company appropriately limiting its claims to what is currently known.

Risk flags

• ●Commercial viability is unproven, as no production test results or flow rates have been disclosed; the presence of oil-bearing rock does not guarantee economic production.
• ●All technical findings are preliminary and subject to revision after testing; porosity and pay estimates may change with further analysis.
• ●No financial, cost, or economic data are provided beyond the statement that operations were on budget, limiting insight into project economics or capital requirements.

Bottom line

TAG Oil has delivered a technically successful well at BED-1 in Egypt, intersecting a 58-metre limestone interval with 14 metres of net oil pay and porosity averaging 8%. The company is moving directly to well completion and testing, with production test results expected later in October 2026. While the technical indicators are positive, no commercial production or flow rates are yet available, so the economic impact remains unproven. The narrative is credible and appropriately cautious, with management emphasizing technical progress and cost discipline. Investors should focus on the upcoming production test results, which will determine whether this well can deliver meaningful value. The key takeaway is that a near-term catalyst is imminent, but commercial success is not yet established.

Announcement summary

(TSXV:TAO) (OTCQB:TAOIF) (FSE:T0P) TAG Oil Ltd. announced that its T-200 exploration well at the Badr Oil Field (BED-1) in Egypt's Western Desert has reached a final total depth of 4,160 metres, targeting the Abu Roash "F" (ARF) reservoir. The ARF interval was encountered between 4,102 and 4,160 metres, comprising 58 metres of limestone with good oil shows. Preliminary interpretation of drilling data, mud logs, and wireline logs indicates the presence of an oil-bearing ARF reservoir with encouraging porosity, hydrocarbon shows, and evidence of natural fracture development. The company reports 14 metres of net oil pay within the ARF interval. Average porosity in the net pay is 8%, with values reaching up to 10%. The reservoir also exhibits favourable permeability characteristics indicative of natural fractures. TAG Oil intends to proceed immediately with completion and testing operations on the T-200 well. Initial production test results are expected later this month. Abby Badwi, Executive Chairman and CEO, stated that the successful drilling and on-budget operations of T-200 represent an important milestone for TAG Oil's BED-1 development program. He noted that the preliminary log and drilling data provide encouraging evidence of an oil-bearing ARF reservoir, including porosity, hydrocarbon shows, and natural fracture development. The company will report results following completion and testing of the well. TAG Oil is a Canadian-based international oil and gas exploration company focused on operations and opportunities in the Middle East and North Africa.

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