TAG Oil has updated its drilling plans in Egypt’s Western Desert after releasing its financial results for the six-month period ending 30 June, 2026.

The Canadian-listed company announced the start of the drilling of the T-200 well on 6 August, with hopes to complete work on schedule by 30 September.

This 4,250 metre vertical well is targeting the Abu Roash ‘F’ (ARF) formation, a naturally fractured reservoir at the location at the Badr oil field (BED-1).

After drilling and completion operations are completed by the end of September, the company said it expects to release well test results soon after.

In its results statement, during the three months ending June 30, 2026, TAG Oil reported that both BED-1 wells produced an average of 66 barrels of oil per day (bpd).

TAG is planning to use its expertise in Enhanced Oil Recovery (EOR) techniques and apply horizontal drilling and hydraulic fracture stimulation to unlock the ARF reservoir potential in Egypt.

Crude oil sales delivered from BED-1 for the same period was 53 bpd, it added.The company, which has no debt, reported C$10.4 million in cash and cash equivalent and C$10.3 million in working capital, as of 30 June, 2026.

TAG Oil also reported “extended delays” in including additional exploration blocks into the Southeast Ras Qattara (SERQ) concession, which it added were beyond its control.

This has, in turn, delayed its commitment to resubmit a previously agreed proposal following enactment of a new law amending the concession terms.

In the meantime, the company announced that it is pursuing other open acreage opportunities in the Western Desert that are prospective for the unconventional ARF formation, with further progress updates to follow.

As well as developing the unconventional heavy oil ARF formation at BED-1 in the Western Desert, the company also hopes to explore the much larger SERQ concession.

According to TAG Oil, an independent reserves evaluation indicates the ARF target in BED-1 may contain more than 500 million barrels of oil in place and has a high probability for successful commercial development.

An independent volumetric assessment of SERQ indicates 3.2 billion barrels of oil in place.