TAG Oil receives results of Abu Roash F assessment

Executive Summary

• TAG Oil Ltd. released an independent volumetric assessment of the Abu Roash "F" (ARF) unconventional, tight, carbonate reservoir in the southeastern Ras Qattara (SERQ) concession, Egypt.
• The assessment, prepared by Fracture Modelling Inc., estimates Oil Initially In Place (OIIP) at 3.2 billion barrels across approximately 250 square kilometers.
• The company has secured approval for a petroleum service agreement to develop the ARF formation, which will provide access to additional data for validation and NI 51-101 compliant evaluation.

Key Details

• Volumetric Estimate: Oil Initially In Place (OIIP) is estimated at 3.2 billion barrels.
• Area Coverage: The assessment covers an area of approximately 250 square kilometers within the SERQ concession.
• Data Basis: Estimates are derived from seismic and well control data, including over 20 well penetrations and associated log data.
• Petrophysical Analysis:
  • Porosity values range between 5% and 10%.
  • Reservoir thickness is consistent at 35 to 45 meters.
  • Analysis indicates favorable hydrocarbon indicators.
• Maturity Analysis: Regional well data suggests the ARF formation is in the early to mid-mature oil window, which is favorable for hydrocarbon generation.
• Comparative Context: Reservoir characteristics are noted as similar to the productive ARF reservoir in the Badr oil field (BED-1), though the company acknowledges material differences in reservoir quality, depth, natural fracture intensity, and completion techniques may exist.
• Future Plans: TAG Oil plans to conduct detailed geochemical and geomechanical studies, validate volumetric estimates, and perform production tests to optimize well design and hydraulic fracture stimulation.
• Regulatory Compliance: The company aims to prepare a comprehensive independent evaluation in accordance with National Instrument 51-101 (Standards of Disclosure for Oil and Gas Activities).
• Prior Announcement: This assessment follows the announcement on October 31, 2025, regarding the approval to enter into a petroleum service agreement for the development of the ARF formation.

Notable Quotes

• "We are encouraged that the FracMod assessment supports our technical understanding of the Abu Roash F formation. While still at an early stage, the findings highlight the potential for unconventional development at the SERQ concession. Our next steps will focus on validating these estimates through improved seismic interpretation and production testing to determine economic viability." — Abby Badwi, Executive Chairman and CEO