[lowside67]

I appreciate the heads up! More reading if anybody is interested:

Latest corporate presentation, released today:
http://www.newzealandenergy.com/Them...rporatePPT.pdf

Kevin Graham's Analysis, dated yesterday:
Company Files :: NZEC :: The art of the promise

David Pescod on TAG & NZ, dated today:

Spoiler!

February 23, 2012
TAG OIL (T-TAO) $9.05 -0.12
NEW ZEALAND ENERGY (V-NZ) $3.04 -0.11
We starting writing about the potential for oil and gas in
New Zealand almost two years ago...because Clive Stockdale
told us to...not because we wanted to. At the time we wondered
just how exciting could oil and gas exploration be in
tiny New Zealand...seeing as it has to import much of its own
oil and well, we just didn’t think it ranked up there with the
potential pizzazz of plays in the North Sea, Alberta, Saskatchewan
and hey, just about anywhere else.
Who would have thought that we would be seeing places
like Argentina, which not too long ago was a bankrupt country
that still has a questionable government and tiny New Zealand
becoming front-page news in the oil and gas patch.
Yesterday TAG Oil and New Zealand Energy both hit new
highs and yet unconventional exploration has yet to start.
The conventional exploration results have simply been that
surprisingly successful.
In the morning yesterday, Mackie Research brought a follow-
up report by rating the latest results from the company.
They write, “CM-2 tests 1,000 bbl/d: The Copper Moki-2 (“CM-
2”) exploration well drilled on the Eltham Permit (100% W.I.) is
currently flowing 1,000 bbl/d of 42° API oil and 820 mcf/d of
natural gas through a 24/64th choke. The CM-2 has been tied
into the Copper Moki-1 (“CM-i”) production facilities and the
produced oil is trucked to a nearby facility and is sold at a
premium to Brent. Field netbacks are currently over US$90/
bbl. The well was drilled to a total depth of 2,080 metres and
encountered 12 metres of net pay in the targeted Mt. Messenger
formation which is equivalent to the net pay in the CM-i
well. Drilling logs also indicate that the shallower Urenui formation
has the potential for oil and gas and will be tested with
a separate well.”
Mackie had raised their target on the company from $2.25
to $2.95 based mainly on expectations that the company
would produce an average of 880 boe/d of oil this year. But
later in the day, New Zealand Energy had a conference call for
analysts and followers and suggested that they expected to
exit the year at 2000 boe/d production.
That perked the market up and simply blew through the
new Mackie target. Again, the unconventional results are yet
to come.
Meanwhile, TAG Oil was setting records of its own. The
folks at Canaccord’s Instant Coffee wrote, “What’s driving
TAG—Pending News from Cheal-B6, B7 or A9?
How about ALL THE ABOVE. At last update on February

15, 2012, TAG reported that completion and testing
operations were being conducted on Cheal-B6 and B7
while new drilling has shifted back to the Cheal-A Site with
the recent spud of Cheal-A9, followed immediately by the
A10 well; each well is expected to take ~15 days to reach
total depth. So news pending? Meantime, Cheal-B5 continues
to flow at rates ranging between 1,000-1,600 bbls/d
depending on the production configuration; optimization
work continues to maximize the value of this anomolously
high rate oil well. With 12 successful Taranaki wells now
drilled in succession, TAG has initiated planning, engineering
and procurement of new and additional infrastructure
to add to TAG's existing Cheal and Sidewinder facilities.
The anomalous recent high rate results, from Cheal-
C2 (gas well) and Cheal-B5 (oil well), have surpassed the
company's forecasted production rates materially, and
necessitated the immediate expansion of oil lifting capacity,
enhanced compression, LPG and liquid hydrocarbon
stripping facilities, and pipelines linking all TAG production
together to be completed by mid to late-2012. This
plan will also allow for drilling success at TAG's $$$$$$$$$$
deep prospects such as Cardiff and Hellfire to accelerate
commercialization in the event of a discovery.”
Yes, there is little doubt that the excitement continues,
although stock valuations are no longer cheap. But once
again, if the unconventional oil hits, this play is still
young.