VANCOUVER, Jan. 31 /PRNewswire-FirstCall/ -- Independent Canadian oil and gas company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF) announced that the Ratanui-1 exploration well in PEP 38741 (TAG 45%) in onshore Taranaki, New Zealand, is expected to commence drilling operations later today. The well is scheduled to drill to a depth of 2,120m (6,955'), and will take approximately 14 days to reach total depth. The well is targeting two separate zones within the Miocene-aged Mt Messenger Formation. TAG Oil President Drew Cadenhead commented: "Ratanui-1 is a follow-up to our SuppleJack discovery last year. We have confirmed this area to be oil and gas bearing with the SuppleJack wells, Ratanui is targeting the same Formations." Mangamingi-1: After analyzing oil shows and wireline log data from the recently drilled Mangamingi-1 well (TAG 100%) in PEP 38758, onshore Taranaki, New Zealand, a completion and testing program is now under design. It is anticipated that the Ensign Service Rig #6, which is scheduled for availability the fourth week of February, will be utilized for the work. Cheal: The Cheal development program in PMP 38156-S (TAG 30.5%), onshore Taranaki, New Zealand, is progressing on time and on budget. Production testing has now been initiated on the recently drilled Cheal-B site wells. Cheal B-3 is currently under test and has averaged 450 BOPD in the first seven days of the test program. TAG Oil President Drew Cadenhead commented: "Cheal B-3 is our first well to be tested of the recent four-well drilling campaign. This well is showing impressive potential so far, we look forward to the cash flow from the Cheal program as a whole, which is on schedule for full capacity by mid-year." About TAG Oil: TAG Oil Ltd. is an independent Canadian oil and gas exploration and production company with a well-balanced portfolio of assets in and around the Canterbury, Taranaki and East Coast basins of New Zealand. With exploration permits totaling 3,686,593 gross acres (net 1,847,593). TAG Oil is one of the largest holders of prospective acreage in New Zealand. 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 Oil. Actual results may vary materially from the information provided in this release. As a result 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. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements, are set forth in filings that the Company has made, including the Company's most recent reports in Canada under National Instrument 51-102 and in the United States under Forms 20-F and 6K. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. CONTACT: Garth Johnson, , (604) 609-3350 DATASOURCE: TAG Oil Ltd. CONTACT: Garth Johnson, , (604) 609-3350

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