TAG Confirms O&G Discoveries in Taranaki Basin

- TAG Confirms O&G Discoveries in Taranaki Basin

Thursday, August 11, 2011
TAG Oil Ltd.

TAG Oil reported that strong test results confirm new oil and gas discoveries in the Sidewinder-2 well and the Cheal-C1 well, both located in the Taranaki Basin, New Zealand.

Lower Mt. Messenger Oil Discovery in Sidewinder-2 Well

TAG has completed isolated flow testing on oil-and-gas-bearing zones discovered in the Sidewinder-2 well. These additional productive zones were encountered in the shallower Urenui Formation and in the lower Mt. Messenger Formation, below the main Sidewinder gas zone discovery, which tested at stabilized rates of 8.8 million cubic feet per day (~1467 BOE per day).

Of particular importance are the oil-bearing sands Sidewinder-2 discovered in the lower section of the Mt. Messenger Formation (~1800m), where the Company recovered significant volumes of light oil during recent swab testing. Technical data suggests that this oil zone can produce at rates consistent with other established Mt. Messenger oil wells in the immediate area. These oil-bearing Mt. Messenger sands are interpreted to be widespread in the Sidewinder permit area and will be a primary target in future exploration wells.

TAG will proceed to commercialize oil production from the lower Mt. Messenger zone and will acquire artificial lifting equipment that will best suit the overall Sidewinder exploration and development strategy.

Also of interest in Sidewinder-2 is the gas discovered in the shallow Urenui Formation (~1400m). The Company tested clean, dry natural gas at rates ranging from 1 to 2 million cubic feet of gas per day (167- 333 BOE's per day) utilizing various choke sizes. Production from the Urenui Formation zone can be commercialized by comingling with the main Sidewinder gas zone.

TAG CEO Garth Johnson commented, "We continue to achieve excellent exploration results which indicate that TAG has potentially discovered a large oil and gas field at Sidewinder. In addition to the prolific main gas zone discovered, there are now two significant high-impact discovery zones to pursue in this acreage. This new Mt. Messenger oil discovery will add high net-back oil production to the ~5000 BOE's of behind pipe awaiting commissioning of the Sidewinder production facilities."

The Sidewinder oil and gas discoveries are located in TAG Oil's Petroleum Exploration Permit 38748 (TAG 100%) in the Taranaki Basin, New Zealand.

Cheal-C1 Testing Confirms Oil Discovery

TAG also reports that testing of the Cheal-C1 exploration well confirms the oil and gas discovery in the Cheal "C" area. Cheal-C1 intercepted oil-and-gas-bearing sands in the Mt. Messenger Formation producing substantial volumes of light oil during swab testing along with clean, dry gas at rates between 1.5 million to 3 million cubic feet per day.

Artificial lifting equipment is now being acquired to establish daily oil production rates, however the Company estimates production capabilities from Cheal-C1 to be similar to TAG's Cheal-B4ST well. This well tested 360 barrels of oil + 240 thousand cubic feet of gas per day.

The Cheal-C1 well also encountered strong oil shows within a 73-meter-thick section of sandstone within the deeper Moki Formation. The Moki zone was tested but commercial flow rates were not achieved. TAG's technical interpretation indicates that Cheal-C1 penetrated a "transitional zone" where oil migrated through the contacted zone into a large structural closure, updip from the Cheal-C1 penetration. Given the extensive oil shows recorded while drilling coupled with the excellent reservoir quality interpreted from electric logs, TAG will plan a new well that will directly target the Moki Formation prospect, drilled from a more optimal location on the structure.

TAG CEO Garth Johnson said, "I'm pleased to achieve such positive results from the Cheal-C1 well, significantly expanding the Cheal development area. We expect to commercialize the Cheal-C1 discovery in conjunction with appraisal drilling included in our next drilling campaign, scheduled to start in September 2011."

The Cheal oil and gas discoveries are located in TAG Oil's Petroleum Mining Permit 38156 (TAG 100%) in the Taranaki Basin, New Zealand.

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OMV Wins Exploration Permit in Taranaki Basin

- OMV Wins Exploration Permit in Taranaki Basin

Wednesday, July 06, 2011
OMV

OMV New Zealand announced the award of the Petroleum Exploration Permit 53537 in the Taranaki Basin. OMV New Zealand holds a 65% interest in the permit and is the operator. Octanex NZ Ltd holds a 35% interest.

PEP 53537 is located west of PEP 51906, which is also held by the same Joint Venture partners. The OMV-operated Maari oilfield lies 25 km to the southeast of PEP 53537.

"OMV has been involved in the Taranaki region since first coming to New Zealand in 1999 and it remains a cornerstone of our New Zealand operations, in terms of both production and exploration," Peter Zeilinger, OMV New Zealand's Managing Director, stated.
PEP 53537 work commitments include 2D and 3D seismic acquisition and reprocessing in the first 18 months, followed by technical studies. A "drill or drop" commitment is due by July 5, 2013.

OMV and Octanex are currently nearing completion of their seismic survey in the adjacent permit PEP 51906. It is intended to commence a 2D seismic survey in PEP 53537 immediately thereafter, using the same seismic vessel.

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TAG Sees 221% Increase in Taranaki Reserves

- TAG Sees 221% Increase in Taranaki Reserves

Monday, May 23, 2011
TAG Oil Ltd.

TAG Oil reported that an independent assessment of reserves has been completed as of March 31, 2011 on TAG Oil's 100%-owned Cheal Mining Permit (PMP 38156) and Sidewinder Exploration Permit (PEP 38748), located in the Taranaki Basin, New Zealand. Sproule International Limited, one of Canada's largest petroleum engineering consulting companies prepared the report in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (COGE Handbook) and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities.

The reserves reported for the 2011 fiscal year relate primarily to the Cheal oil and gas field due to fiscal year-end 2011 cut-offs required under NI-51-101. Due to the timing of operations occurring after March 31, 2011, the Sidewinder reserve assessment was completed with information related only to the Sidewinder-1 well and does not include the now-completed Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells.

The assessment of reserves has assigned net proved and probable reserves ("2P") remaining of 1,360,000 barrels of oil (2010 = 651,000 bbls) and 1,864 million cubic feet ("mmcf") of associated gas (2010 = 258 mmcf). This reserves report, on a 2P basis, amounts to 1,677,000 barrels of oil equivalent ("BOE") assessed within a reserves area covering just 475 acres of the 7,487-acre Cheal permit and just 107 acres of the 7,910-acre Sidewinder permit.

After considering production during the 2011 fiscal year, the 1,677,000 BOE in proved and probable reserves represents a 221% increase over the March 31, 2010 year-end independent reserve assessment. The key factors for the increase in reserves for fiscal 2011 are as follows:

• One new well drilled and completed
• Establishment of commercial production from a bypassed discovery
• Increased recovery factors
• Upward revision to projected future well performance

During the 2011 fiscal year, TAG focused primarily on optimizing the production from the producing Cheal wells. This resulted in an increase in the recovery factors being assigned to the Mt. Messenger Formation. In addition, TAG was successful in establishing the first-ever commercial production from the bypassed Urenui Formation oil discovery, using two historical wells drilled at Cheal by the previous operator. Having successfully completed these operations, Cheal now produces from both the Urenui and Mt. Messenger Formations at approximate depths of 1400m (~4600 feet) and 1800m (~5900 feet), respectively.

TAG Oil's Chief Executive Officer, Garth Johnson, commented, "We are very pleased to follow fiscal 2010's reserve increase with another large increase in fiscal 2011, even after having produced ~160,000 barrels of oil during the year. This report has established initial reserves within the Sidewinder discovery area, where the majority of our operations occurred after year-end and could not be considered for fiscal 2011 reserves. The commercialization of the Urenui oil discovery has also allowed us to book initial reserves and is another low-risk opportunity to build reserves in Taranaki from this widespread formation identified at Cheal."

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TAG Oil Sees Increase in Taranaki Reserves

- TAG Oil Sees Increase in Taranaki Reserves

Thursday, May 19, 2011
TAG Oil Ltd.

TAG Oil reported that an independent assessment of reserves has been completed as of March 31, 2011 on TAG Oil's 100%-owned Cheal Mining Permit (PMP 38156) and Sidewinder Exploration Permit (PEP 38748), located in the Taranaki Basin, New Zealand. Sproule International Limited, one of Canada's largest petroleum engineering consulting companies prepared the report in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (COGE Handbook) and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities.

The reserves reported for the 2011 fiscal year relate primarily to the Cheal oil and gas field due to fiscal year-end 2011 cut-offs required under NI-51-101. Due to the timing of operations occurring after March 31, 2011, the Sidewinder reserve assessment was completed with information related only to the Sidewinder-1 well and does not include the now-completed Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells.

The assessment of reserves has assigned net proved and probable reserves ("2P") remaining of 1,360,000 barrels of oil (2010 = 651,000 bbls) and 1,864 million cubic feet ("mmcf") of associated gas (2010 = 258 mmcf). This reserves report, on a 2P basis, amounts to 1,677,000 barrels of oil equivalent ("BOE") assessed within a reserves area covering just 475 acres of the 7,487-acre Cheal permit and just 107 acres of the 7,910-acre Sidewinder permit.

After considering production during the 2011 fiscal year, the 1,677,000 BOE in proved and probable reserves represents a 221% increase over the March 31, 2010 year-end independent reserve assessment. The key factors for the increase in reserves for fiscal 2011 are as follows:

• One new well drilled and completed
• Establishment of commercial production from a bypassed discovery
• Increased recovery factors
• Upward revision to projected future well performance

During the 2011 fiscal year, TAG focused primarily on optimizing the production from the producing Cheal wells. This resulted in an increase in the recovery factors being assigned to the Mt. Messenger Formation. In addition, TAG was successful in establishing the first-ever commercial production from the bypassed Urenui Formation oil discovery, using two historical wells drilled at Cheal by the previous operator. Having successfully completed these operations, Cheal now produces from both the Urenui and Mt. Messenger Formations at approximate depths of 1400m (~4600 feet) and 1800m (~5900 feet), respectively.

TAG Oil's Chief Executive Officer, Garth Johnson, commented, "We are very pleased to follow fiscal 2010's reserve increase with another large increase in fiscal 2011, even after having produced ~160,000 barrels of oil during the year. This report has established initial reserves within the Sidewinder discovery area, where the majority of our operations occurred after year-end and could not be considered for fiscal 2011 reserves. The commercialization of the Urenui oil discovery has also allowed us to book initial reserves and is another low-risk opportunity to build reserves in Taranaki from this widespread formation identified at Cheal."

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TAG Reports More Taranaki Success

TAG Reports More Taranaki Success

Friday, May 06, 2011
TAG Oil Ltd.

TAG Oil Ltd. on Friday reported that the Sidewinder-4 exploration well, located in TAG Oil's 100%-controlled New Zealand Petroleum Exploration Permit 38748, has been confirmed as a light oil and gas discovery. Along with the three previous Sidewinder discoveries, it is TAG Oil's fifth exploration success in the Taranaki Basin in the past six months.

The results from the Sidewinder-4 well indicate that the targeted oil-and-gas-charged Mt. Messenger Formation sandstones extend significantly to the east of the Sidewinder-1 discovery well. As TAG Oil noted in an April 5, 2011, announcement, the Sidewinder-3 discovery well suggested that the Mt. Messenger Formation sandstones extend significantly south of the original Sidewinder-1 discovery as well.

The interpreted total hydrocarbon column at Sidewinder now exceeds 60 meters (196 feet) in thickness, with no water column evident in any of the Sidewinder wells. Together, the four Sidewinder wells drilled to date indicate that the size and scope of the Sidewinder discovery area is much larger than originally anticipated. Furthermore, the entire permit remains lightly explored and prospective for further oil and gas discoveries, with numerous drill-ready prospects.

The Sidewinder-4 well, which was sidetracked to a location down-dip of Sidewinder-3, targeted a fault-bounded 3-D anomaly, which intercepted a gross 29 meter-thick (95 feet) sandstone reservoir. The total depth of Sidewinder-4 is 1410 meters (4,626 feet), with 19 meters (62 feet) of net oil-and-gas-charged sandstones, with electric logs indicating hydrocarbon charge to the base of the sandstone. Free oil was observed over the shakers during the drilling operation from the target zone. And consistent with all of the Sidewinder wells drilled to date, the oil-and-gas-charged sandstones encountered in Sidewinder-4 have excellent porosity and permeability.

TAG is now preparing to commence the flow testing of the Sidewinder-2, Sidewinder-3 and Sidewinder-4 wells in a few weeks' time. All wells will be placed onto production through the Sidewinder Production Station, currently under construction with anticipated completion by mid-year 2011.

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TAG Oil Continues Taranaki Streak with Sidewinder Discovery

TAG Oil Continues Taranaki Streak with Sidewinder Discovery

Tuesday, April 05, 2011

TAG Oil Ltd.

TAG Oil reported that the Sidewinder-3 exploration well is confirmed as a light oil and gas discovery, the third discovery made in TAG Oil's 100%-controlled Petroleum Exploration Permit 38748 in the onshore Taranaki Basin, North Island, New Zealand, and the Company's fourth new oil and gas discovery in five months.

The Sidewinder-3 exploration well was drilled to a total depth of 2160 meters (7087 feet), targeting a large anomaly identified on 3-D seismic, approximately 1.1 Km to the south of the recent Sidewinder-1 and Sidewinder-2 discoveries. Sidewinder-3 encountered 15.4 meters (50 feet) of net oil-and-gas-bearing sandstones in the primary Sidewinder zone, including "free oil" observed over the shakers during the drilling operation.

"This is our third successful Sidewinder well, with each new well helping us to more accurately calibrate our 3-D data set, and further understand the geology in this lightly-explored acreage." Drew Cadenhead, TAG Oil COO commented. "Of particular interest, the Sidewinder-3 well has shown the Mt. Messenger Formation reservoir sands extend significantly to the south of the original Sidewinder discoveries, and hydrocarbons appear to have migrated into all potentially producing sands encountered to date. The size and scope of the discovery area is potentially much larger than originally anticipated, and bodes well for both near term development and future exploration."

The three Sidewinder discovery wells are part of TAG Oil's ongoing exploration drilling campaign that commenced in Petroleum Exploration Permit 38748 in February 2011 following the Sidewinder-1 discovery. Sidewinder-1 flow tested at stabilized rates of 8.5 million cubic feet of gas plus 44 barrels of oil per day for a total of 1461 barrels of oil equivalent ("BOE") per day with no water.

Garth Johnson, TAG Oil CEO commented. "Once flow testing of all new Sidewinder wells is complete, we can better assess the magnitude of these discoveries. Given the encouraging results achieved to date we are expanding the throughput capabilities of the Sidewinder Production Station to accommodate more production than we initially anticipated. Our immediate focus remains on building cash flow and reserves associated with these discoveries."

TAG Oil will immediately proceed to drill the Sidewinder-4 exploration well, which will also target the Mt. Messenger Formation sandstones approximately 1 Km to the east of the Sidewinder-1 well.

Cue Commences Seismic Surveys in Taranaki Basin

Cue Commences Seismic Surveys in Taranaki Basin

Tuesday, April 05, 2011
Cue Energy Resources Ltd.

Cue announced that acquisition of the Te Whatu and Pungarehu 2D Seismic Surveys has commenced in permits PEP 51313 and PEP 51149 in the Taranaki Basin of New Zealand.
The Te Whatu survey comprises 636 km of 2D seismic data and is being acquired with the Seabird Exploration vessel M/V Aquila Explorer. The survey acquisition is expected to take approximately 14 days to record subject to weather.

The Pungarehu survey comprises 150 km of conventional 2D marine data, 29 km of conventional land data and 60 km of shallow water "transition zone" data. The survey acquisition is expected to take approximately 14 days to record subject to weather.
Participants in PEP 51313 are:

• Cue Taranaki Pty Ltd 20%
• Todd Exploration Limited 50% (Operator)
• Horizon Oil (New Zealand) Limited 30%

Participants in PEP 51149 are:

• Cue Taranaki Pty Ltd 20%
• Todd Exploration Limited 61.425% (Operator)
• AGL Energy Limited 18.575%

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