TAOIF TAG Oil Ltd New (QX)

VANCOUVER, May 28, 2013 /PRNewswire/ - May 28, 2013 - TAG Oil Ltd. (TSX: TAO)
and (OTCQX: TAOIF), reports that with the completion of the Company's
Taranaki Basin production facility expansion and associated pipeline,
all but six wells capable of commercial production have now been tied
into the facility and optimized for long-term production.

With all production facilities (100% owned and operated by TAG) now in
place, the Company is able to rapidly commercialize any new discoveries
and leverage its strong Taranaki-region operational position. This
includes maximizing TAG Oil's position as a completely independent
processor, transporter, and marketer of the oil and gas the Company
discovers, extracts and produces.

TAG's current production — entirely from the shallow Miocene section
within the Cheal and Sidewinder fields — varies between 2,500 to 3,000
barrels of oil equivalent per day ("BOE"), with an average baseline
production of 2,700 BOE's per day over the past ten days. Baseline
production will increase as remaining shut-in wells are brought on
stream, as well as any success arising from the ten new wells planned
to be drilled by year's end which could materially increase this
production figure.

This baseline production and cash-flow platform, combined with extensive
production infrastructure provides a strong foundation for TAG Oil's
foray into many years of high impact exploration opportunities. New
Zealand is recognized as an untapped oil and gas frontier with some of
the best fiscal terms and lowest royalties in the industry, and where
TAG can enjoy the benefits of a high impact international portfolio
without the political and economic disadvantages associated with many
other parts of the world.

Robust netbacks of $73 per barrel of oil and $3.88 per MCF of gas.


TAG's current production in Taranaki consists of roughly a 46/54 split
of light oil and natural gas: TAG receives Brent Crude oil prices which
averaged 15% higher than North American pricing year-to-date, and a
thriving New Zealand natural gas market with prices at 34% higher than
North America.

"TAG Oil's shallow drilling campaign of the past two years resulted in
baseline production from a well-executed drilling campaign. In addition
to adding reserves and cash-flow this campaign has enabled TAG to
collect critical comprehensive data on geological, geophysical, and
well-performance capability. This accumulated knowledge translates into
many years of low-risk shallow development drilling." said Drew
Cadenhead, TAG's COO. "Even more important for the long term, is that
for the first time in TAG's existence, we can better predict
Company-wide production rates, and we have reliable data to more
accurately forecast the commerciality of wells that contribute to our
shallow conventional play in Taranaki. Although TAG's been involved in
about 12% of the ~400 wells drilled in Taranaki since 1950, the
geological database we can pull from is remarkably small, considering
an equivalent area in Alberta has over 100,000 wells drilled. But we're
amassing data, and TAG's learning curve with respect to the
commerciality of the shallow Miocene play has been rapid."

For further information regarding TAG Oil's state-of-art production
facilities and the Company's inherent growth potential please visit: http://www.tagoil.com/20130404-TAG-Oil-Cheal-Infrastructure-Expansion-Complete.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 is exploring the major unconventional
resource potential believed to exist in the 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.

TAG Oil has adopted the standard of six thousand cubic feet of gas to
equal one barrel of oil when converting natural gas to "BOE's". BOEs
may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6Mcf: 1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.

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.
These statements are based on certain factors and assumptions
including:

A. All estimates and statements that describe the Company's objectives,
goals, production rates, optimization, infrastructure capacity and or
future plans relating to the seismic, testing, work over and drilling
programs in Taranaki are 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, production, marketing and
transportation, volatility of commodity prices, imprecision of reserve
estimates, environmental risks, competition from other producers, and
changes in the regulatory and taxation environment. These
forward-looking statements are based on certain factors and
assumptions, including factors and assumptions regarding the
management's views on the oil and gas potential in the Permits, well
performance, the success of any operations, completing infrastructure
and the costs necessary to complete the operations; and

B. Those relating to TAG Oil's exploration and development of its oil
and gas properties within the Cheal and Sidewinder project areas, the
production and establishment of additional production of oil and gas in
accordance with TAG Oil's expectations at Cheal and Sidewinder, well
performance, drilling, the completion of new infrastructure at Cheal
and Sidewinder, optimization, the increase of cash flow from new
production, expected growth, results of operations, performance,
prospects, evaluations and opportunities. While TAG Oil considers these
factors and assumptions to be reasonable based on information currently
available, they may prove to be incorrect. 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.

TAG Oil is involved in the exploration for and production of
hydrocarbons, and its property holdings with the exception of the Cheal
and Sidewinder project areas are in the grass roots or primary
exploration stage. Exploration for hydrocarbons is a speculative
venture necessarily involving substantial risk. There is no certainty
that the expenditures incurred on TAG Oil's exploration properties will
result in discoveries of commercial quantities of hydrocarbons. TAG
Oil's future success in exploiting and increasing its current reserve
base will depend on TAG Oil's ability to develop its current properties
and on its ability to discover and acquire properties or prospects that
are producing. There is no assurance that TAG Oil's future exploration
and development efforts will result in the discovery or development of
additional commercial accumulations of oil and natural gas. 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.