TAG Oil Begins Multi-Well Drilling Program in New Zealand

TAG Oil has now entered the drilling phase of its 2004 multi well drilling campaign in New Zealand. All initial wells scheduled this year are located in the heart of the production fairway in the Taranaki Basin and are within close proximity to existing infrastructure. TAG President and CEO Drew Cadenhead commented, "Honeysuckle-1 and Miromiro-1 have both been delineated with 3-D seismic and provide the company a prudent opening foray into our 2004 exploration campaign. These onshore wells present significant discovery potential as evidenced by Kaimiro and Ngatoro, two offsetting multi-million barrel discoveries. Importantly, with interests in over 3 million acres of prospective land, our strategy provides relatively low risk, immediate discovery potential while we prepare our high impact prospects later in the year." Well site preparation has begun on Honeysuckle-1 with drilling commencing (with partners) June 1st, 2004. Honeysuckle-1 will be immediately followed by Miromiro-1 in PEP 38765, with a third well presently in the planning stage.