TAOIF TAG Oil Ltd New (QX)

VANCOUVER, June 28, 2013 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), reports the Company has filed its consolidated, audited
financial statements, management discussion and analysis and annual
information form with the Canadian Securities Administrators for the
Company's March 31, 2013 fiscal year-end. Copies of these documents can
be obtained electronically at http://www.sedar.com, or for additional information please visit TAG Oil's website at http://www.tagoil.com/.

Poised for Many Years of Growth


During FY2012 and 2013, TAG Oil conducted an extensive Taranaki drilling
campaign consisting of wells averaging approximately 2,000 meters
depth, commonly referred to as TAG's shallow drilling program. This
program, which targeted the Urenui and Mt. Messenger formations within
the Company's 100% owned Cheal and Sidewinder fields, now provides TAG
with ongoing high netback production and steady cash flow.

Decline rates from new wells tied in are now stable and in line with
other typical Cheal wells on long term production. Some wells from the
drilling campaign came onstream with record flow rates, however did not
maintain these high rates and declined to production levels in line
with other profitable wells in the field. The resulting long-term cash
flow has positioned TAG to execute the Company's most diverse and
active drilling campaign in the Company's history, including
high-impact drilling in the East Coast Basin, while maintaining a very
strong debt free balance sheet. Furthermore, control of extensive
Taranaki production and delivery infrastructure ensures rapid
commerciality of new wells.

FY2013 TAG Oil Highlights

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  At March 31, 2013, the Company had cash of $68.9 million, working
  capital of $68.1 million and no debt.
  
  
  
  
  
  
  
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  Daily average production increased 23% for the year, from 1,433 BOE to
  1,756 BOE.
  
  
  
  
  
  
  
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  Income of $10.69 million was recorded for fiscal 2013 before the
  deduction of non-cash share-based compensation, and production revenue
  increased 4% to $44.59 million.
  
  
  
  
  
  
  
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  Operations generated  $34.21 million in cashflow, compared to $15.56
  million in 2012.
  
  
  
  
  
  
  
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  Total production for the year was 641,142 BOE's.
  
  
  
  
  
  
  
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  Sproule International assigned 1p, 2p and 3p reserves of 2,216,000 BOE
  (85% oil), 6,112,000 BOE (88% oil) and 8,268,000 BOE (86% oil),
  respectively.
  
  
  
  
  
  
  
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  Successfully drilled, completed and placed on permanent production at
  the Cheal field: Cheal-A11, Cheal-A12 and Cheal-B8 wells.
  
  
  
  
  
  
  
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  Successfully drilled, completed and placed on permanent production at
  the Sidewinder field: Sidewinder-A5 and Sidewinder-A6, and drilled the
  Sidewinder-A7 well.
  
  
  
  
  
  
  
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  Successfully drilled and cased the Ngapaeruru-1 well and encountered
  excellent mud gas shows indicating the presence of gas zones or soluble
  gas in oil between the intervals within a 155m gross hydrocarbon
  column.
  
  
  
  
  
  
  
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  Infrastructure expansion program completed by March 31, 2013 as planned,
  allowing increased production capacity, processing of natural gas
  including liquid stripping capabilities, and export of natural gas to
  the open-access pipeline infrastructure.
  
  
  
  
  
  
  
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  In May 2012, TAG closed a bought deal financing at $10.45 per share,
  issuing 4,435,000 common shares for net proceeds of $43,365,746.
  
  
  
  
  
  
  
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  The Company acquired a 90% interest in a New Zealand electricity
  generation and retailing company, Opunake Hydro Limited ("OHL") through
  the investment of approximately $5.0 million, with all funds being used
  to acquire new gas-fired generation equipment to be located at the
  Company's Cheal site.
  
  
  
  
  
  
  
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  Acquired 40% in Coronado Resources Ltd. (TSXV: CRD) and will acquire an
  additional 10% of Coronado's common shares as a result of selling OHL.
  The deal is subject to the terms and conditions of the Share Purchase
  Agreement that has been executed by all parties involved.
  
  
  
  
  
  
  
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  Acquired three New Zealand exploration permits in the East Coast and
  Canterbury basins: PEP 52589, PEP 52676 and PEP 53674, comprised of
  approximately two-million acres in favourable geological areas offering
  high-impact exploration opportunities.
  
  
  
  
  
  
  
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  Awarded four new onshore Taranaki exploration blocks in New Zealand's
  2012 Block Offer adding at least 10 drilling prospects plus numerous
  leads identified on 3D seismic in close proximity to TAG's producing
  Cheal oil field. A Joint Venture created with East West Petroleum Ltd.
  on three of the new permits carries TAG through $10 million in
  exploration costs while maintaining operatorship.
  
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Financial and Production Review

TAG currently has 59,344,052 common shares outstanding and 63,052,386
common shares outstanding on a fully diluted basis.

Oil and Natural Gas Production, Pricing and Revenue

A summary of TAG's drilling program over the next 12 months:

Shallow-Well Program


The program will consist of nine shallow Taranaki wells with permit
interests between 50% to 70%. The Company will apply what it has
learned from the extensive new drilling data acquired in the last three
years to target the low-risk step out prospects, and build the
Company's net proved and probable reserves of 6,112,000 BOE's (88% oil)
estimated by Sproule as of March 31, 2013. The intention of this
drilling program is to continue to exploit the shallow play potential
and further maximize the value of the Cheal and Sidewinder fields which
remain lightly explored.

Deep Gas and Condensate Program


TAG will step up its efforts in the Taranaki Basin to drill larger,
seismically defined, prospects which have the potential to materially
bolster the Company's long-term production and reserve growth profiles.

The Company will drill at least two of its 100% owned deep Kapuni
gas/condensate prospects in FY2014.

Cardiff and Heatseeker are scheduled to commence in the third quarter of
calendar 2013. A third prospect, the Hellfire deep prospect, may be
drilled contingent on the results of Cardiff and Heatseeker. These deep
Eocene-aged targets are materially larger in reserve size and
deliverability potential than what TAG has been targeting in the
shallow Miocene formations. Drilling of TAG's Kapuni prospects will use
a large seismic database to target prospect depths of approximately
3,500 to 4,000 meters. TAG's Kapuni targets are on trend and similar to
the large deep gas/condensate plays in Taranaki such as the Kapuni
Field that has produced 1.5 TCF and 65 mmbls of condensate to date and
800 BCF Mangahewa field operated by Shell and Todd Petroleum.

In a report dated February 28, 2011, Sproule International Limited
estimates the gross undiscovered resource potential associated with
TAG's Cardiff Prospect as follows:

East Coast Basin Tight Oil


In April of 2013, the Company drilled and cased its first unconventional
test well, Ngapaeruru-1. The Ngapaeruru-1 well reached a total depth of
1,417 meters after successfully drilling through the Waipawa and
Whangai source rock formations, the main objective of the well. Initial
results are very encouraging with 155 meters of potential tight oil and
gas pay. TAG cut and recovered sidewall cores over 14 separate
intervals within the 155 meters of potential tight pay, sampled total
organic content (TOC) and acquired in-situ gas analysis at depth.
Detailed petrophysical evaluation is now underway with a full suite of
unconventional logs to ascertain source rock quality, fracture
identification, geochemistry, and rock moduli data. This data will be
used to determine the most suitable completion method for production
testing the Ngapaeruru-1 well.

TAG plans to drill at least three more exploration wells in the East
Coast Basin over the next 18 months, to achieve the Company's goal of
converting a potentially major undiscovered unconventional resource
into proven reserves.

Canterbury Basin


After some encouraging early stage results, further resource potential
is being assessed after processing and interpreting 80km's of recently
acquired seismic data. TAG's new 2D seismic, acquired over leads
initially identified using geochemical surface data, has resulted in a
clearly imaged subsurface, resulting in four newly mapped features
within the permit. TAG intends to acquire additional seismic over these
specific leads to confirm aerial extent of the anomalies as well as
closure prior to making a commitment to drill.

The Canterbury Basin is an underexplored oil and gas frontier that is
recognized to have major discovery potential. Large energy companies
such as US-based Anadarko Petroleum and Australian-based Origin Energy are exploring the offshore region in the immediate vicinity to TAG's
1.17 million acres under permit.

Conference Call Information


TAG Oil will host a discussion of its 2014 forward program as well as
fourth quarter 2013 results conference call on Friday June 28, 2013 at
1:00 pm Pacific Time. Please call in ten minutes before the conference
call starts and stay on the line (an operator will be available to
assist you should you have questions of management during the call). In
addition, questions can be forwarded by e-mail in advance to info@tagoil.com.

Interested parties may access the conference call using the information
below:

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 "BOEs". 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 the Taranaki, Canterbury and East Coast Basins 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 TAG's
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.