Report Confirms Resource Potential of TAG Oil Prospects

TAG Oil Ltd. announced the release of an independent technical assessment on four of the Company's oil and gas prospects in New Zealand. Sproule Associates Limited completed the study.

In the report, Sproule Associates assigned a Low Side gross undiscovered resource potential of 725 BCF of gas and 142 million barrels of oil and a High Side resource potential of just under 2 trillion cubic feet of gas and 390 million barrels of oil/condensate to the four drill-ready prospects.

Commenting on the report, TAG Oil President and CEO Drew Cadenhead stated, "Their findings confirm our expectations and illustrate both the potential of our properties and the acumen of our New Zealand strategy. Sproule's reputation for due diligence is unmatched in the industry and we are excited that their technical team have assigned such significant resource potential to our core projects."

According to a company spokesperson, the Low Side assignment represents over $2 billion in undiscovered resource potential net to TAG Oil and provides cause for considerable optimism for the Company's 2004 exploration / drilling campaign.