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TAG Oil Reports 2013 Fiscal Year End Financial Results and 2014 Drilling Program

   TAG Oil Reports 2013 Fiscal Year End Financial Results and 2014 Drilling
                                   Program

PR Newswire

VANCOUVER, June 28, 2013

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

  *At March 31, 2013, the Company had cash of $68.9 million, working capital
    of $68.1 million and no debt.

  *Daily average production increased 23% for the year, from 1,433 BOE to
    1,756 BOE.

  *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.

  *Operations generated $34.21 million in cashflow, compared to $15.56
    million in 2012.

  *Total production for the year was 641,142 BOE's.

  *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.

  *Successfully drilled, completed and placed on permanent production at the
    Cheal field: Cheal-A11, Cheal-A12 and Cheal-B8 wells.

  *Successfully drilled, completed and placed on permanent production at the
    Sidewinder field: Sidewinder-A5 and Sidewinder-A6, and drilled the
    Sidewinder-A7 well.

  *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.

  *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.

  *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.

  *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.

  *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.

  *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.

  *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.

Financial and Production Review

                                                 2013            2012
Production revenue                       $   44,591,201   $   42,908,655
Net income prior to share-based                             
compensation                                   10,694,371         18,924,540
Net income                                   5,073,359      12,376,019
Earnings per share                                0.09            0.24
Working capital                             68,073,376      65,371,541
Total assets                               210,937,314     148,883,278
Long term debt                                       -               -
Shareholder's equity                     $  191,190,601   $  133,368,183

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

                    Three months ended March 31         Year ended March 31
                              2013         2012         2013          2012
                    
Daily production                                                       
volumes(1)
      Oil                    1,013        1,405          959           918
       (bbls/d)
      Natural gas              678          752          797           515
       (BOE/d)
      Combined               1,691        2,157        1,756         1,433
       (BOE/d)
                                                                      
Daily sales                                                            
volumes^(1)
      Oil                    1,007        1,407          957           925
       (bbls/d)
      Natural gas              436          496          548           413
       (BOE/d)
      Combined               1,443        1,903        1,505         1,338
       (BOE/d)
                                                                      
      Natural Gas            2,618        2,977        3,287         2,480
       (Mmcf/d)
                                                                      
Product pricing                                                        
      Oil ($/bbl)           116.59       119.54       110.87        115.57
                                                            
      Natural gas             4.94         4.48         4.63          4.16
       ($/Mmcf)
Sales                                                                  
Oil and natural         $11,993,143  $16,701,663  $44,286,567   $42,908,655
gas revenue -
gross
Other revenue -             304,634            -      304,634             -
gross(2)
Total revenue -          12,297,777   16,701,663   44,591,201    42,908,655
gross
Oil and natural         (1,376,561)  (2,973,964)  (5,036,005)   (9,706,513)
gas royalties(3)
Revenue - net           $10,921,216  $13,727,699  $39,555,196   $33,202,142

(1)  Natural gas production converted at 6 Mcf:1BOE (for BOE figures)
(2)  Other revenue is electricity revenue related to OHL.
(3)   Includes a 25% royalty related to the acquisition of a 69.5% interest in
     the Cheal field that was reduced to 7.5% during the fourth quarter of
      fiscal 2012.
                                                                           



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

Permit Number Well Name         TAG      # of Wells Target Depth
                                Interest
PEP 54877     Cheal D & E-Sites 70%      5          Miocene <2,500m
PEP 54876     Southern Cross    50%      1          Miocene <2,500m
PEP 54879     Cheal F & G-Sites 50%      3          Miocene <2,500m
PMP 38156     Cardiff           100%     1          Eocene > 4,000m
PEP 54873     Heatseeker        100%     1          Eocene > 4,000m
PEP 38348     Waitangi          100%     1          Unconventional

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:

      Resources       Low Estimate Best Estimate High Estimate Mean
      Category           (p90)         (p50)         (p10)
Undiscovered Gas         137.3         214.5         341.4     230.7
Initially-in-Place
(BCF)
Undiscovered               8           12.8          21.5       14
Condensate Initially-
in-place
(Million Barrels)

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:

Date                 June 28^th, 2013
Time                 1:00pm Pacific Time
Toll-Free Dial-in #   1-866-318-8614
Secondary Dial-in #  1-617-399-5133
                     
Conference Passcode  51004241
                     
E-mail questions to:  info@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 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.

Contact:

Dan Brown or Garth Johnson
Phone: 1-604-682-6496
Email:info@tagoil.com
Website:http://www.tagoil.com/
Blog:http://blog.tagoil.com/
 
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