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TAG Oil Provides Third Quarter Results

February 15, 2013

Conference Call to Discuss Third-Quarter Results and Operations Update

VANCOUVER, Feb. 15, 2013 /PRNewswire/ – TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), today announced its financial results for the quarter ended
December 2012, as well as access instructions for a telephone
conference call to discuss Q3 results and operations.

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 in the e-mail address provided below.


    Date              Tuesday, February 19, 2013

    Time              11:00 a.m. Pacific Time

    Toll-Free         1-800-706-7749
    Dial-in #

    Regular Dial-in   1-617-614-3474
    #

    Conference        70081822
    Passcode 

    E-mail             info@tagoil.com
    questions to:

Q3-2013 and Recent Operating Highlights

        --  TAG Oil's production revenue increased 23% to $32.29 million
            for the nine months ended December 31, 2012, compared to $26.21
            million in the comparable period last year;
        --  During Q3-2013 TAG produced an average of 1,727 BOE per day
            with a production revenue increase by 13% to $10.85 million
            compared to $9.62 million in Q2-2013;
        --  The Company generated a net profit for the quarter of $2.64
            million (nine months: $9.40 million) before deducting
            $2,004,076 (nine months: $4,344,751) non-cash share-based
            compensation;
        --  TAG remains debt free with approximately $72 million in cash at
            the date of this report;
        --  TAG sold 86,687 barrels of oil during the last quarter (nine
            months: 256,745) at an average price of $109.97 per barrel
            (nine months: $108.80 per barrel);
        --  TAG sold 47,104 BOE of gas during the quarter (nine months:
            159,775 BOE) at an average price of $4.79 per mcf (nine months:
            $4.55 per mcf);
        --  Production infrastructure expansion is on track for completion
            by March 31, 2013 as planned, to allow unrestricted production
            from 25 wells and any future wells;
        --  Commenced a 13-well Taranaki Basin drilling campaign, starting
            with the Sidewinder-5, Sidewinder-A6, Sidewinder-A7 wells;
        --  Secured rig to drill the Cardiff prospect, a large
            liquids'-rich gas target in the Kapuni Formation with
            independent mid range resource potential estimated by Sproule
            International of 214.5 Bcf and 12.8 million barrels of
            associated condensate;
        --  TAG Oil was awarded four attractive onshore Taranaki
            exploration blocks all within proximity of our Cheal and
            Sidewinder infrastructure;
        --  TAG retains a 100% interest in its East Coast Basin permits and
            receives cash payment through an early termination of the
            farm-out agreement with Apache Corporation.

Liquidity and Financial Summary
At the date of this report, TAG is debt free with approximately $72
million in cash on the balance sheet. Production revenue for the
quarter was $10.85 million (nine months: $32.29 million) compared to
$12.98 million (nine months: $26.21 million) for the comparable quarter
last year, and the Company generated a net profit for the quarter of
$2.64 million (nine months: $9.4 million) before deducting $2,004,076
(nine months: $4,344,751) non-cash share-based compensation.

TAG currently has 59,637,623 common shares outstanding and 63,267,386
common shares outstanding on a fully diluted basis.

Taranaki Basin Operations
TAG finished Q3-2013 with Sidewinder-5 encountering approximately 6
meters of net pay to start off calendar 2013′s Taranaki drilling
program. SW-5 has been completed for production and will be tied in to
the Sidewinder production facility in early March, after Sidewinder-6
and 7 have been drilled.

Summary of TAG well status

     ___________________________________________________________________
    |Site         |Producing *                  |Behind pipe            |
    |_____________|_____________________________|_______________________|
    |Cheal A      |A3, A7, A9, A10, A11, A12    |A1, A4, A8             |
    |_____________|_____________________________|_______________________|
    |Cheal B      |B3, B4ST, B6, B8             |B1, B2, BH1, B5, B7    |
    |_____________|_____________________________|_______________________|
    |Cheal C      |                             |C1, C2, C3, C4**       |
    |_____________|_____________________________|_______________________|
    |Sidewinder   |SW-A2, SW-A3, SW-A4          |SW-A1, SW-A5**         |
    |_____________|_____________________________|_______________________|

    *Cheal-A7 and A12 and Cheal-A9, A10, A11 and A12 are all producing into
    small diameter temporary production lines that inhibit optimal
    production. Back pressure testing on the individual wells indicate
    these wells will produce more optimally using their own production
    pipelines
    upon completion of the Cheal infrastructure upgrades.

    ** Re-completed and/or awaiting production test

TAG’s infrastructure project is scheduled to be completed on March 31,
2013 allowing the Company to become completely self-sufficient in
producing, processing and marketing all oil and gas it produces. TAG
can then initiate production on all oil and gas wells that have been
drilled but are not yet producing, along with any additional production
arising from future successful wells drilled.

Cheal Oil and Gas Field – 100% Interest
TAG expects continued growth through the following activities:

      1. Continued exploration and development drilling: pre-emptive right
         on the Nova-1 drilling rig ensures access to services;

      2. Infrastructure enhancement project and new gas pipeline at Cheal
         ensures maximum value is achieved from all discoveries, making TAG
         completely self-sufficient for oil and gas production, processing
         and marketing;

      3. Drilling the Cardiff liquids-rich deep gas target: Cardiff has an
         independent resource potential estimated by Sproule International
         of 214.5 Bcf and 12.8 million barrels of associated condensate and
         the Company anticipates drilling Cardiff in mid-C2013; and

      4. A detailed geotechnical evaluation of all untested zones in the
         Cheal area: Many TAG wells drilled in the last two years
         encountered multiple pay horizons. Good production practice
         dictates depleting one zone at a time in these multi-zone wells,
         and the study will determine if an accelerated infill drilling
         program is economically justified to maximize value of these
         to-date untested zones.

Sidewinder Oil and Gas Field – 100% Interest
During the quarter, the Company was granted consent by the New Plymouth
District Council allowing TAG to drill up to four new wells within the
Sidewinder Oil and Gas Field. TAG immediately completed site
construction, and to the date of this report, has drilled the
Sidewinder-A5 well and spudded Sidewinder-A6.

TAG intends to also drill Sidewinder-A7 and Sidewinder-A8 using its
proprietary 3D seismic, combined with new 2D seismic that was acquired
during fiscal 2012. The Sidewinder Permit is lightly explored and
significant exploration potential remains in both shallow and deeper
targets located within the Permit area. Planned operations are as
follows:

      1. Drill 4 new exploration wells, inclusive of Sidewinder-5 that has
         already been drilled during the quarter; and

      2. Drill Sidewinder's deeper liquids-rich gas targets such as the
         Hellfire prospect where TAG's technical team has used 3D seismic
         to interpret Hellfire as a large high-impact prospect with
         significant resource potential.

Taranaki Blocks Offer Permits – Shallow Drilling
TAG Oil, along with its joint venture partner East West Petroleum, will
utilize the extensive 2D and 3D seismic coverage to drill a minimum of
nine wells in C2013 on the three joint ventured permits as follows:

     _________________________________________________________________
    |   Permit Number |      Permit    |   # of Wells   |     Target  |
    |                 |Name/Interest   |                |             |
    |_________________|________________|________________|_____________|
    |      PEP 54877  |East Cheal (TAG |           5    |     Miocene |
    |                 |      70%)      |                |    2500m    |
    |                 |                |                |             |
    |_________________|________________|________________|_____________|
    |      PEP 54879  |South Cheal (TAG|           3    |Miocene 2500m|
    |                 |      50%)      |                |             |
    |_________________|________________|________________|_____________|
    |      PEP 54876  |North Cheal (TAG|           1    |Miocene 2500m|
    |                 |      50%)      |                |             |
    |_________________|________________|________________|_____________|

Taranaki Blocks Offer Permits – Deep Drilling
Heatseeker is a 3D defined, drill ready deep gas and condensate prospect
that has similar geological features to the adjacent landmark Kapuni
gas/condensate field. Heatseeker is anticipated to be drilled late in
calendar 2013.

     ___________________________________________________________________
    |   Permit Number   |       Permit     |   # of Wells   |   Target  |
    |                   |   Name/Interest  |                |           |
    |___________________|__________________|________________|___________|
    |       PEP 54873   |   Heatseeker (TAG|           1    |   Eocene >|
    |                   |     100%)        |                | 4000m     |
    |                   |                  |                |           |
    |___________________|__________________|________________|___________|

East Coast Basin Operations
On January 31, 2013, TAG Oil and Apache Corp. concluded an agreement for
early termination of the Farmout Agreement related to PEP’s 38348,
38349 and 50940. The main highlights of the agreement are:

      1. Apache paid TAG a lump sum payment to satisfy its obligations
         related to funding Phase 1 operations under the Farmout Agreement;

      2. TAG will retain all assets developed under the agreement,
         including all seismic and technical work completed by the Joint
         Venture; and

      3. TAG retains a 100% interest in the above mentioned East Coast
         Basin permits.

The Company continues to focus on consultation and engagement while
progressing its operational planning for upcoming drilling activities.

The Company anticipates beginning drilling the first two wells of the
Phase I drilling program in April 2013. These wells will test several
high-impact play objectives including the Waipawa and Whangai source
rocks, utilizing conventional vertical drilling techniques similar to
those used by TAG over many years in its successful Taranaki Basin
operations.

In addition, TAG is currently preparing to drill one shallow
stratigraphic well on PEP 50940 as part of its work program commitments
in the East Coast Basin. The stratigraphic slim-hole well is similar in
design and operations to a farmers water well. The 450 meter planned
depth will facilitate the gathering of geological rock data before
being plugged and abandoned.

Canterbury Basin Operations
During the quarter, TAG acquired and processed an 80 kilometre 2D
seismic survey within the Company’s new frontier exploration permit
(“PEP 52589″) situated both offshore and onshore the Canterbury Basin,
South Island, New Zealand. Interpretation of the seismic data is
underway to identify potential well locations. The Canterbury Basin is
an under-explored frontier area with many geological similarities to
the productive Taranaki Basin.

Historical drilling results in Canterbury indicate good exploration
potential with two gas/condensate discoveries drilled in the offshore
portion of the Basin, one of which tested in excess of 10 million cubic
feet of gas and 2,300 barrels of oil per day. Although these
discoveries were uneconomical due to the high cost of offshore
development, more importantly, the gas/condensate accumulations found
in these wells confirm that generation, migration and entrapment of
hydrocarbons occur in the Basin, indicating additional accumulations
are likely to be present.

Offshore drilling scheduled by majors such as Anadarko and Origin Energy
in 2013/2014 allow TAG to focus initially onshore while holding
considerable upside related to its control over the onshore and near
shore acreage directly updip of the scheduled deep water offshore
wells.

Capital Expenditure
Expenditures on the Company’s oil and gas properties during Q3 of the
2013 fiscal year amounted to approximately $21 million, primarily
invested in the Company’s Taranaki operations for drilling, testing,
workovers and infrastructure as follows:


    Cheal Field                                     $19.54 million

    Sidewinder Field                                $0.29 million

    East Coast, Taranaki Offshore, Canterbury       $1.17 million

TAG Oil has filed its third quarter December 31, 2012, condensed
consolidated unaudited interim financial statements and management
discussion and analysis with the Canadian Securities Administrators.
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/.

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 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 2,953,810 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.

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 Oil. Such statements can
generally, but not always, be 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, infrastructure capacity and or future plans
relating to the seismic, testing, work over and drilling programs in
the Taranaki and East Coast Basins; 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, the increase of cash flow from new production, expected
growth, results of operations, performance, prospects, evaluations and
opportunities.

All such statements 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,
availability of financing 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.
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.


Source: PR Newswire