TAOIF TAG Oil Ltd New (QX)

VANCOUVER, May 7, 2013 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), is pleased to report that drilling of TAG's 100%-controlled
Ngapaeruru-1 exploration well is drilling ahead, and has encountered
elevated mud gas readings at a depth of 800 to 977 meters. The
significance of the elevated gas readings will not be known until
wireline logs have been run and evaluated.

The Ngapaeruru-1 well has reached intermediate casing point at 977
meters with operations continuing according to the drill plan. The
planned total depth of the Ngapaeruru-1 well is approximately 1800
meters and is targeting the naturally fractured Waipawa Black Shale and
Whangai source-rocks.

"We've passed a couple of critical drilling challenges successfully in
the Ngapaeruru-1 well now, including cementing intermediate casing
across the troublesome Weber and Wanstead Formations. TAG can now drill
confidently ahead into the Waipawa and Whangai source rock targets."
Drew Cadenhead, TAG's C.O.O. commented. "We've had to increase the mud
weights considerably as we drill deeper, and we continue to see rising
mudlog gas readings, including the oil-indicative C3-C5 factions, which
is encouraging. The "oil kitchen" in these source rocks is definitely
working below us - it promises to be interesting drilling over the next
couple of weeks."

The Ngapaeruru-1 well was spudded on April 22, 2013 and is located in
TAG's 100% controlled Petroleum Exploration Permit 38349, located in
the East Coast Basin of New Zealand.

For further information on the Ngapaeruru-1 exploration well and TAG
Oil's unconventional prospects please visit: http://www.tagoil.com/20130422-TAG-Oil-First-Oil-And-Gas-Exploration-Well-East-Coast-Basin.asp

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations
focused exclusively in New Zealand. With 100% ownership over all its
core assets, including extensive oil and gas production infrastructure,
TAG is enjoying substantial oil and gas production and reserve growth
through development of several light oil and gas discoveries. TAG is
also actively drilling high-impact exploration prospects identified
across more than 2,984,171 net acres of land in New Zealand.

In the East Coast Basin, TAG will explore and potentially develop the
major unconventional resource potential believed to exist in the tight
oil source-rock formations that are widespread over the Company's
acreage. These oil-rich and naturally fractured formations have many
similarities to North America's Bakken source-rock formation in the
successful Williston Basin.

Cautionary Note Regarding Forward-Looking Statements:

Statements contained in this news release that are not historical facts
are forward-looking statements that involve various risks and
uncertainty affecting the business of TAG. Such statements can be
generally, but not always, identified by words such as "expects",
"plans", "anticipates", "intends", "estimates", "forecasts",
"schedules", "prepares", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
All estimates and statements that describe the Company's objectives,
mudlog gas readings, oil indicators, drilling, goals and or future
plans with respect to the drilling in the East Coast Basin
forward-looking statements under applicable securities laws and
necessarily involve risks and uncertainties including, without
limitation: risks associated with oil and gas exploration, development,
exploitation and production, geological risks, marketing and
transportation, the risk associated with estimating undiscovered
original initially-in-place, availability of adequate funding,
volatility of commodity prices, environmental risks, competition from
others, and changes in the regulatory and taxation environment. Actual
results may vary materially from the information provided in this
release, and there is no representation by TAG Oil that the actual
results realized in the future will be the same in whole or in part as
those presented herein.

Other factors that could cause actual results to differ from those
contained in the forward-looking statements are also set forth in
filings that TAG and its independent evaluator have made, including
TAG's most recently filed reports in Canada under National Instrument
51-101, which can be found under TAG's SEDAR profile at www.sedar.com.

TAG undertakes no obligation, except as otherwise required by law, to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors change.

SOURCE TAG Oil Ltd.