September 29, 2010 / 4:42 PM / 7 years ago

UPDATE 1-Tag Oil discovers new oil well in Taranaki basin

* Says gets 14 metres of net oil-bearing sandstones

* Shares up as much as 12 pct

Sept 29 (Reuters) - Canada’s Tag Oil Ltd TAO.V said it discovered a new oil well at its Taranaki basin in New Zealand.

The oil and gas producer, which has its core assets in New Zealand, said Sidewinder-1 well was drilled to a depth of 1,601 metres, and got 14 meters of net oil-bearing sandstones.

“We are extremely pleased to achieve oil pay in excess of what we had anticipated; these results also increase the likelihood of additional discoveries,” Chief Executive Garth Johnson said in a statement.

Shares of the Vancouver-based company were trading up 5 percent at C$3.27 Wednesday midday on the Toronto Venture Exchange. They touched a high of C$3.46 earlier in the day.

The stock has gained 37 percent since Jan. 26, when the company acquired acreage covering Kawakawa oil shale in New Zealand. (Reporting by Aftab Ahmed in Bangalore; Editing by Maju Samuel) (aftab.ahmed@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: aftab.ahmed.reuters.com@reuters.net))

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