TAG Oil Begins Exploration in Onshore Taranaki Basin

TAG Oil and its partners expect to spud the Supplejack-1 well in PEP 38741 (TAG Oil 20%) on July 22, 2005. O.D.&E. Rig #19 will test two separate Miocene targets for TAG and partners, with approximately 18 days scheduled to drill 2,600 meters total measured depth. Shortly after completion of Supplejack-1, the drilling rig will be moved to PEP 38745 (TAG Oil 16.67%) to drill the Richmond-1 well to a depth of 2,300 meters and then immediately to PEP 38751 (TAG Oil 33.33%) to drill the Konini-1 well to a depth of 2,000 meters.

TAG also announces that its shares will begin trading on the TSX Venture Exchange ("TSXV") on July 18, 2005 under the trading symbol "TAO". TAG's shares will continue to trade on the OTCBB under the symbol "TAGOF".

TAG Oil President Drew Cadenhead commented, "We're excited to initiate this drilling phase of our New Zealand strategy. These first three wells are all located within the proven oil-producing fairway in Taranaki, very near under-utilized infrastructure. Considering our potential to create value in New Zealand and our recent approval to list on an internationally recognized stock exchange, our ability to attract capital and create broader awareness during an exciting time for the Company has been enhanced."

TAG Oil Ltd. is a Canadian-based exploration company that is exploring for oil and natural gas in New Zealand. The Company first began its involvement in New Zealand in approximately 1996, however in the past four years the Company has grown its acreage position substantially and is recognized as one of New Zealand's prominent exploration companies.