Wednesday, May 15, 2013


TAG Oil's Ngapaeruru-1 Well Intersects Oil and Gas Shows in Source Rock
 
VANCOUVER, May 14, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), reports that TAG's 100%-controlled Ngapaeruru-1 exploration well has reached a total depth of 1417 meters after successfully drilling through the Waipawa and Whangai source rock formations, the main objective of the well.

Excellent mud gas shows - which indicate the presence of gas zones or soluble gas in oil - were recorded between the intervals of 1140 - 1295m (155m gross hydrocarbon column). Preliminary gas ratio analysis interprets a predominantly wet gas / oil signature. All data has now been forwarded to independent laboratories for expert analysis.
In addition, TAG Oil cut and recovered sidewall cores over 14 separate intervals within the 155 meters of potential unconventional oil and gas pay, sampled total organic content (TOC) and acquired in-situ gas analysis at depth. Detailed petrophysical evaluation is now underway with a full suite of unconventional logs to ascertain source rock quality, fracture identification, geochemistry, and rock moduli data. This data is critical to determining the most suitable completion method and production testing of the Ngapaeruru-1 well, as well as to better understanding the long term feasibility of TAG's East Coast Basin opportunity.

"Our team did an excellent job drilling this first ever unconventional target in the East Coast Basin," commented Drew Cadenhead, TAG's Chief Operating Officer. "Diligence and communication made certain that the occasionally tricky drilling conditions in this Basin were handled as planned: safely, efficiently, and with no environmental incidents. The fact that early mud-log analysis has returned wet gas and oil indications is both encouraging and very exciting. We're looking forward to more detailed results once analysis of the data acquired from the Ngapaeruru-1 well is complete."
Ngapaeruru-1 is located in TAG's 100%-controlled Petroleum Exploration Permit 38349 in the East Coast Basin of New Zealand. The Ngapaeruru-1 well represents New Zealand's first test directly targeting the naturally fractured Waipawa and Whangai formation source rocks which is believed to contain a significant oil and gas resource.
For further information on the Ngapaeruru-1 exploration well and TAG Oil's unconventional prospects please visit: http://www.tagoil.com/20130422-TAG-Oil-First-Oil-And-Gas-Exploration-Well-East-Coast-Basin.asp

TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. With 100% ownership over all its core assets, including extensive oil and gas production infrastructure, TAG is enjoying substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact exploration prospects identified across more than 2,984,171 net acres of land in New Zealand.
In the East Coast Basin, TAG is exploring the major unconventional resource potential believed to exist in the source-rock formations that are widespread over the Company's acreage. These oil-rich and naturally fractured formations have many similarities to North America's Bakken source-rock formation in the successful Williston Basin.
Cautionary Note Regarding 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. Such statements can be generally, but not always, identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. All estimates and statements that describe the Company's objectives, mudlog gas readings, oil indicators, drilling, goals and or future plans with respect to the drilling in the East Coast Basin forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered original initially-in-place, availability of adequate funding, volatility of commodity prices, environmental risks, competition from others, and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this release, and 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.
Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG's most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG's SEDAR profile at www.sedar.com.
TAG undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors change.


SOURCE: TAG Oil Ltd.
Dan Brown or Garth Johnson
TAG Oil Ltd., 1-604-682-6496
Email: info@tagoil.com
Website: http://www.tagoil.com/
Blog: http://blog.tagoil.com/

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