TAG Oil Wins Exploration Acreage in New Zealand

The New Zealand Ministry of Economic Development recently awarded TAG Oil and its joint venture partners, exploration rights to Permit PEP38765. The award represents an additional 3,142 gross acres to TAG's existing land position. The permit is located in the heart of the main production fairway of the prolific Taranaki Basin and adds a key component to TAG's Taranaki exploration portfolio.

TAG Oil President and CEO Drew Cadenhead commented, "This new acreage is considered most prospective for shallow, oil-prone Mt. Messenger wells and represents a key component of our low-risk / high-return exploration strategy. Importantly, the lands fall within our recently completed 3-D seismic survey, which has helped us identify multiple drill-ready targets in the new acreage." Cadenhead concluded, "We are very pleased with the award and based upon our 3-D seismic data, TAG has committed to drill the first well on this acreage before the end of the year."