TAG Oil Ltd. (TSXV: TAO | OTCQB: TAOIF | FSE: T0P) has released an update on production testing of its T-200 vertical well at the Badr Oil Field in Egypt's Western Desert, disclosing that no formation oil reached surface during initial unloading operations. The company attributed the result to potentially restricted flow linked to near-wellbore formation damage or reservoir skin. TAG Oil now plans an acid stimulation treatment before re-testing the well, with a combined operational and financial update scheduled for November 25, 2026.

Key Points

  • TAG Oil Ltd. (TSXV: TAO | OTCQB: TAOIF | FSE: T0P) is a Canadian-based international oil and gas exploration company focused on the Middle East and North Africa.
  • Initial nitrogen-lift unloading of the T-200 well at the Badr Oil Field produced no formation oil at surface over a 48-hour period.
  • The well was drilled and completed on budget to a total depth of 4,160 metres, targeting the Abu Roash "F" reservoir.
  • Investors should watch for results of the planned acid stimulation and the November 25, 2026 Q3-2026 operating and financial results update.

T-200 Well Drilling Completed On Budget at 4,160 Metres

TAG Oil confirmed the T-200 vertical well at the Badr Oil Field — referred to as BED-1 — was drilled and completed on budget, reaching a total depth of 4,160 metres. The well targets the Abu Roash "F" reservoir, a carbonate formation in Egypt's Western Desert. Well unloading operations were conducted using nitrogen lifting through coiled tubing to displace brine from the production tubing. The company has not disclosed the total capital cost of the drilling and completion programme in this announcement.

No Formation Oil at Surface During 48-Hour Unloading Operations

Over the 48-hour unloading period, no formation oil reached surface, which the company characterised as suggesting restricted flow. TAG Oil's preliminary interpretation points to near-wellbore formation damage or reservoir skin as possible causes, though the company acknowledged this assessment remains subject to further analysis and revision. The well has since been shut in to allow the drilling rig to be released from the location. There is no assurance, as the company noted in its release, that subsequent stimulation will result in commercial oil production.

Acid Stimulation Treatment to Target Carbonate Reservoir Flow Capacity

Following rig release, TAG Oil intends to undertake an acid stimulation treatment, which the company described as 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 management will monitor pressure and decline behaviour to determine a stabilised production rate. The company did not disclose the estimated cost or timing of the stimulation programme beyond noting it will follow the rig's departure from the location.