TAG Oil Production Test Update

TAG Oil's T-200 well in Egypt failed to flow oil; acid stimulation is next.

What the company is saying

TAG Oil Ltd. (TSXV:TAO, OTCQB:TAOIF, FSE:T0P) reports that its T-200 vertical well at the Badr Oil Field in Egypt's Western Desert was drilled and completed on budget to a depth of 4,160 metres targeting the Abu Roash 'F' reservoir. The company details that well unloading using nitrogen lifting through coiled tubing did not result in any formation oil reaching surface over a 48-hour period. Management frames the lack of flow as likely due to near-wellbore formation damage or reservoir skin, indicating a technical rather than geological failure. The well has been shut in pending rig release, after which an acid stimulation treatment—a standard remediation in carbonate reservoirs—will be performed. The company emphasizes that the acid operation is intended to restore formation flow capacity and that the well will be re-tested to determine stabilized production rates. TAG Oil plans to provide a further update, including Q3-2026 operating and financial results, on November 25, 2026. Abdel (Abby) Badwi, Executive Chairman and CEO, is named as the key executive overseeing these operations.

What the data suggests

The T-200 well reached a total depth of 4,160 metres and was completed on budget, but no oil flowed to surface during the initial 48-hour well unloading operation. The company attributes the restricted flow to possible near-wellbore formation damage or reservoir skin, but provides no direct diagnostic evidence for this assessment. No production volumes, flow rates, or financial figures beyond the well depth and operation duration are disclosed. The next operational step is acid stimulation, after which the well will be re-tested to assess whether commercial oil flow can be established. The only scheduled catalyst is the November 25, 2026 update, which will include Q3-2026 operating and financial results. At this stage, the project remains pre-production with no evidence of commercial viability from the T-200 well.

Analysis

The announcement is a factual operational update on the T-200 well in Egypt, with no exaggerated or promotional language. The company discloses that the well was drilled and completed on budget, but no oil was produced during the initial 48-hour test. The next steps—acid stimulation and re-testing—are described as standard technical procedures, not as guaranteed solutions or transformative events. There are no claims of imminent production, revenue, or profitability, and the only forward-looking statements are procedural (planned acid stimulation, future monitoring, and a scheduled update). No large capital outlay is paired with long-dated or uncertain returns in this release, and the tone remains measured. The gap between narrative and evidence is minimal, as the company openly reports the lack of oil flow and the need for further work.

Risk flags

• ●Operational risk is high, as the T-200 well failed to flow oil during the initial 48-hour test, indicating that the targeted reservoir may not be readily productive without further intervention. If acid stimulation does not restore flow, the well could remain non-commercial.
• ●Technical risk is present due to the reliance on acid stimulation to address suspected formation damage or reservoir skin. There is no guarantee that this treatment will succeed, and the company has not provided supporting data to confirm the diagnosis.
• ●Disclosure risk exists as the company provides no production, flow rate, or financial figures beyond well depth and operation duration, limiting the ability of investors to assess the project's economic potential or the likelihood of commercial success.
• ●Timeline risk is moderate, as the next update is scheduled for November 25, 2026, and any delays in rig release, acid stimulation, or re-testing could push back potential value realization.

Bottom line

TAG Oil's update confirms that its T-200 well in Egypt has not yet produced oil, with the initial 48-hour test yielding no flow to surface. The company plans to attempt acid stimulation, a standard remedial step, but there is no assurance of success or commercial production. No financial or production metrics are disclosed, so the project's economic potential remains unproven. Investors should expect the next substantive information on November 25, 2026, when Q3-2026 results and a further operational update are due. The most important takeaway is that the T-200 well remains a technical and commercial question mark, and the outcome of the upcoming acid stimulation will determine whether the project can advance beyond the exploration stage.

Announcement summary

(TSXV:TAO) (OTCQB:TAOIF) (FSE:T0P) TAG Oil Ltd. has provided an update on the production testing of its T-200 vertical well at the Badr Oil Field (BED-1) in Egypt's Western Desert. The T-200 well was drilled and completed on budget to a total depth of 4,160 metres, targeting the Abu Roash "F" reservoir. The company began well unloading operations using nitrogen lifting through coiled tubing to displace brine in the production tubing. Over the last 48-hour period, no formation oil had reached surface by the end of the operation, suggesting restricted flow potentially associated with near-wellbore formation damage or reservoir skin. The well was subsequently shut in for the drilling rig to be released from the location. Upon release of the rig, TAG Oil plans to undertake an acid stimulation treatment, which is a primary method in carbonate reservoirs to improve wellbore clean-up and restore formation flow capacity. After the acid operation, the well will be re-tested, and the company will continue to monitor performance and evaluate pressure and decline behavior to determine the well's stabilized production rate. TAG Oil will provide a further update along with its Q3-2026 operating and financial results on November 25, 2026. Abdel (Abby) Badwi is the Executive Chairman and CEO of TAG Oil Ltd. The company is a Canadian-based international oil and gas exploration company focused on operations and opportunities in the Middle East and North Africa. The company attributes the lack of oil flow to possible near-wellbore formation damage or reservoir skin. The acid stimulation treatment is expected to improve wellbore clean-up and restore formation flow capacity. The company will monitor the well's performance after the acid operation to determine stabilized production rates. The T-200 well's production potential will be evaluated following these operations. TAG Oil's next operational and financial update is scheduled for November 25, 2026.

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