TAOIF TAG Oil Ltd New (QX)

VANCOUVER, Aug. 14, 2013 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), reports the Company has filed its financial results with the
Canadian Securities Administrators for the Company's June 30, 2013
first quarter fiscal 2014 year. 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/.

Q1 2014 TAG Oil Highlights

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  At June 30, 2013, the Company had cash of $57.2 million, working capital
  of $63.5 million and no debt.
  
  
  
  
  
  
  
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  Production revenue increased to $14.7 million.
  
  
  
  
  
  
  
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  Net income of $4.5 million generated, before the deduction of non-cash
  share-based compensation.
  
  
  
  
  
  
  
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  Operations generated $9.6 million in cashflow.
  
  
  
  
  
  
  
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  Daily average production increased 39% in Q1-14 compared to Q4-13.
  
  
  
  
  
  
  
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  Purchased 260,000 common shares of the Company for cancellation and
  return to treasury at an average price of $3.05 per share.
  
  
  
  
  
  
  
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  Drilled and cased the Ngapaeruru-1 well in the East Coast Basin,
  intersecting 155 meters of unconventional oil and gas reservoir in the
  source rock.
  
  
  
  
  
  
  
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  Signed a new surface access agreement in the East Coast Basin permit to
  allow for drilling access on PEP 38348 (Waitangi Hill area).
  
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Financial and Production Review

TAG currently has 59,196,752 common shares outstanding and 62,905,086
common shares outstanding on a fully diluted basis.

Oil and Natural Gas Production, Pricing and Revenue

Fully Funded 12-Well Drilling Campaign Launching August 2013

During the remainder of the 2014 fiscal year TAG will execute the most
diverse and active exploration drilling campaign in the Company's
history. This high-impact drilling campaign includes nine conventional
wells across three new permits with partner East West Petroleum, plus a
minimum of two 100% TAG owned deep Kapuni Formation wells ("Cardiff and
Heatseeker") in the Taranaki Basin, and at least one unconventional
well in the East Coast Basin (TAG 100%). Consistent with our corporate
strategy, this drilling program will be funded from cash flow provided
from TAG's Cheal and Sidewinder production and a strong, debt-free
balance sheet.

TAG's new Taranaki region production and delivery infrastructure ensures
efficient and cost-effective commerciality of any new wells that arise
from this drilling program. A summary of the resource potential limited
to the twelve prospects included in this drilling program are described
below. The Company expects to continue to identify additional resource
potential through new lead and prospect generation as analysis of the
permit data continues.

Undiscovered Resource Potential Estimated Per Explored Prospect

Conference Call Information


TAG Oil will host a discussion of its Q1 2014 financial results and
forward program on Wednesday August 14, 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 2,669,780 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.

The resource estimates in this news release were prepared with an
effective date of June, 30, 2013. These estimates have been internally
prepared by an internal qualified reserves evaluator in accordance with
NI 51-101 and the Canadian Oil and Gas Evaluations Handbook.

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 and production
guidance, 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 and production rates, 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.