Business & Investments

TAG’s Cheal-B7 Nicely Flows More Than 1,100 Barrels of Oil Per Day

Vancouver, B.C. (PRWEB) March 08, 2012

TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), is pleased to report that TAG’s Cheal-B7 discovery properly has been flow tested and is naturally flowing at an average rate of a lot more than 1,100 barrels of light oil per day plus associated gas. The Cheal-B7 properly is located within TAG’s 100%-owned Cheal oil and gas field, situated in Petroleum Mining Permit 38156 in the Taranaki Basin of New Zealand.

The Cheal-B7 well was drilled to a total depth of approximately two,100 meters and encountered a total of 18 meters of high good quality oil-and-gas-bearing sands inside the targeted Urenui and Mt. Messenger Formations, located to the northeast and up-dip of TAG’s recent Cheal-B5 oil properly discovery.

With the Cheal-B7 nicely, TAG is currently producing far more than 4,000 BOE’s per day with light oil contributing roughly 70% to that every day production figure. In addition, TAG has one more three,500 BOE’s per day of production, which is drilled and sitting behind pipe awaiting the expansion of the Company’s infrastructure, which will enable this “behind pipe” production to be brought onstream.

These production figures do not consist of any production arising from the effective drilling of the Cheal-B6, Cheal-A9 and Cheal-A10 wells, which are at the moment becoming production tested. The Cheal-B6 nicely encountered 14 meters of oil-and-gas-bearing sands inside the Urenui and Mt. Messenger Formations whilst the Cheal-A9 and Cheal-A10 wells encountered 10.five meters of net pay and 13 meters of net pay respectively inside the targeted Urenui Formation.

TAG CEO Garth Johnson commented, “TAG’s Taranaki drilling continues to attain extremely significant outcomes, which now stands at 14 consecutive productive wells. The Cheal-B6, A9 and A10 wells will be tested more than the next couple of weeks, and with an additional ten wells planned in Taranaki this year, along with workovers to particular current wells, we will continue to create our reserve base and oil and gas production. In order to facilitate the anticipated new oil and gas production, additional expansion to the Cheal Production Facility is now underway, which will guarantee that all existing and future Cheal wells can be produced concurrently.”

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration business with operations focused exclusively in New Zealand. With 100% control more than all its core assets, like oil and gas production infrastructure, TAG is anticipating substantial oil and gas production and reserve growth by means of improvement of many light oil and gas discoveries. TAG is also actively drilling high-influence exploration prospects identified across a lot more than 1,300 sections of land in the onshore Taranaki and East Coast Basins of New Zealand’s North Island.

In the East Coast Basin, TAG has entered into a farm-out agreement with Apache Corp to explore and potentially develop the significant unconventional resource possible estimated in the tight oil supply-rock formations that are widespread more than the Company’s acreage. These oil-rich and naturally fractured formations have many similarities to North America’s Bakken supply-rock formation in the successful Williston Basin.

For additional info:

Dan Brown or Garth Johnson

Telephone: 1-604-682-6496

E mail: info(at)tagoil(dot)com

Internet site: http://www.tagoil.com/

Weblog: http://blog.tagoil.com/

Critical Information:

“BOEs” may be misleading, specifically if utilized in isolation. A BOE conversion ratio of 6Mcf: 1 Bbl is based on an power equivalency conversion approach primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Cautionary Note Relating to Anticipated Outcomes and Forward-Searching Statements:

Statements contained in this news release that are not historical details are forward-looking statements that involve a variety of risks and uncertainty affecting the business of TAG Oil. Such statements can usually, but not always, be identified by words such as “expects”, “plans”, “anticipates”, “intends”, “estimates”, “forecasts”, “schedules”, “prepares”, “potential” and comparable expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. These statements are based on certain variables and assumptions including

A. all estimates and statements that describe the Company’s objectives, goals, or future plans relating to the seismic, testing and drilling programs in Taranaki are forward-looking statements beneath applicable securities laws and necessarily involve dangers and uncertainties including, with out limitation: dangers connected with oil and gas exploration, development, exploitation, production, advertising and marketing and transportation, volatility of commodity rates, imprecision of reserve estimates, environmental dangers, competitors from other producers, and changes in the regulatory and taxation atmosphere. These forward-searching statements are based on certain variables and assumptions, like variables and assumptions with regards to the management’s views on the oil and gas prospective in the Permits, properly overall performance, the success of any operations, completing infrastructure and the costs needed to full the operations and

B. those relating to TAG Oil’s successful exploration and development of its oil and gas properties within the Cheal and Sidewinder project regions, the production and establishment of added production of oil and gas in accordance with TAG Oil’s expectations at Cheal and Sidewinder, properly overall performance, the completion of new infrastructure at Cheal and Sidewinder, the boost of money flow from new production, oil and gas price tag assumptions and fluctuations, foreign exchange rates, expected growth, outcomes of operations, performance, prospects, evaluations and opportunities and successful earnings tax rates. Whilst TAG Oil considers these elements and assumptions to be reasonable based on details presently available, they may prove to be incorrect. Actual outcomes may possibly differ materially from the info supplied in this release, and there is no representation by TAG Oil that the actual outcomes realized in the future will be the same in complete 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 locations are in the grass roots or major 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 achievement in exploiting and escalating its current reserve base will depend on TAG Oil’s ability to develop its present properties and on its potential to discover and acquire properties or prospects that are producing. But, there is no assurance that TAG Oil’s future exploration and development efforts will outcome in the discovery or development of further commercial accumulations of oil and natural gas.

Other aspects that could lead to actual outcomes to differ from those contained in the forward-seeking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG’s most not too long ago filed reports in Canada below National Instrument 51-101, which can be identified under TAG’s SEDAR profile at http://www.sedar.com.

TAG undertakes no obligation, except as otherwise required by law, to update these forward-searching statements in the event that management’s beliefs, estimates or opinions, or other elements alter.

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