Overview

TAG Oil Ltd. is a Canadian company exploring for oil and natural gas in New Zealand.  New Zealand provides the perfect backdrop for a company like TAG Oil Ltd. to grow. Not only can TAG Oil enjoy the benefits of a stable economic and political environment, but New Zealand is an under-explored oil and gas frontier with profitable oil and gas production being established.

The Taranaki Basin has established recoverable reserves of approximately 7 trillion cubic feet of gas and 500 million barrels of oil, with fewer than 400 exploration wells. Some onshore Taranaki oil wells have previously ranked as the most profitable in the world.

Investment Highlights

New Zealand Information

EXPLORING IN NEW ZEALAND

New Zealand is an economically developed country where TAG Oil has been able to grow and enjoy the benefits of an international oil and gas portfolio without the political and economic disadvantages associated with many other parts of the world. New Zealand's permitting regime and fiscal terms are ranked among the best in the world, oil produced is easily sold at world prices, and there is a thriving domestic natural gas market.

Most of the exploration attention has been focused around the Taranaki Basin where fewer than 400 exploration wells have been drilled. The rest of New Zealand's sedimentary basins are virtually unexplored. Many of the basins exhibit oil seeps, however, and exploration data reveal many structures with hydrocarbon potential. An onshore gas discovery was made in the East Coast Basin in 1998, while sub-commercial discoveries have also been made in the offshore Canterbury and Great South basins.

Properties

TARANAKI BASIN, NORTH ISLAND NEW ZEALAND

The Taranaki Basin is located on the west coast of New Zealand's North Island. In comparison to other rift complexes of its size (100,000 sq km) and potential, the Taranaki Basin is lightly explored. Only one exploration well per 72,000 acres has been drilled in the basin to date. Historical oil and gas exploration success rates have been about one in five. However, with expanding geological knowledge of the subsurface, the success rate continues to improve.

To date, there have been approximately 500 million barrels of oil and 7 trillion cubic feet of gas discovered in Taranaki, with fewer than 400 exploration wells.

Taranaki Basin Oil and Gas Explorers:

TAG Oil Ltd., Swift Energy, Austral Pacific Energy, Westech Energy, Tap Oil, Shell Oil / Todd Petroleum, Bridge Petroleum, Westech, Pogo Producing, Greymouth, Australia Worldwide Exploration, OMV Oil

CANTERBURY BASIN, SOUTH ISLAND NEW ZEALAND

The Canterbury Basin is barely explored, with only five wells drilled to more than 2 km depth. The basin is the northwestern part of a much larger Cretaceous rift of over 200,000 sq km that includes the Great South Basin and the unexplored Bounty Trough. The Canterbury Basin contains more than 6 km of Cretaceous-Cenozoic sediment with geology very similar to the producing basins of Taranaki and South Australia, which formed at the same time and were adjacent before Cretaceous rifting.

There have been no successful onshore wells to date, but four offshore wells drilled during the 1970s and 1980s are more indicative of the Canterbury Basin’s potential. Both Galleon-1 (3086 m) and Clipper-1 (4742 m) contained significant hydrocarbon shows in Late Cretaceous coal measure sands. Galleon-1 flowed gas at 10 MMCFD with 2300 BOPD condensate, but was plugged and abandoned due to the calculated reserve. The discovery demonstrated that the basin has the necessary components of a working petroleum system.

Canterbury Basin Explorers:

TAG Oil, Austral Pacific Energy, Tap Oil, Australian Worldwide Exploration

EAST COAST BASIN, NORTH ISLAND, NEW ZEALAND

The East Coast Basin covers an area of approximately 120,000 sq kms, extending for 600 kms onshore and offshore along the east coast of New Zealand's North Island, and running all the way to the South Island of New Zealand.

There have only been about 38 wells drilled in the East Coast Basin, including two offshore, with gas discoveries onshore in the Kauhauroa-1 and Tuhara-1 wells. The Basin has numerous oil and gas seeps and shows have been recorded in many of the wells, with significant shows in the offshore wells. The Basin is structurally complex and many early wells were drilled around the seeps onshore. However, there has been little modern exploration.

TAG OIL'S Strategies

• To explore for petroleum in countries with low political risk, good fiscal regimes, low government taxation and growing population demands.

• To acquire significant tenement interests in projects with short- to medium-term production potential.

• To establish a balanced portfolio of high risk/high reward exploration projects with low risk/moderate reward acreage in producing basins.

• To minimize overhead costs with the judicious use of technical and financial consultants.

• To bring new exploration ideas and technical innovation into the regions of interest.

• To protect the environment during all exploration and production processes.

Recent News and Press Releases

TAO filings with SEDAR can be found here. All Fillings are current and the Company is fully reporting.

This report includes forward-looking statements that reflect TAG Oil Ltd. current expectations about its future results, performance, prospects and opportunities. TAG Oil Ltd. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause TAG Oil Ltd.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

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