TAG Oil Announces Ratanui-1 Results, Updates Operations

VANCOUVER, Feb. 14  /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, has reached a Total Depth of 2,120m (6,955'). After evaluation of wireline and drilling data, the Joint Venture (Austral Pacific 55%, TAG 45%) has agreed to plug and abandon the well.

TAG Oil President Drew Cadenhead commented: "The target Mt. Messenger Sands at Ratanui-1 were well-developed but interpreted as water-wet. The Joint Venture can now decide what course of action to take to determine the commercial feasibility in developing the off-setting SuppleJack gas-condensate discovery."

Mangamingi-1:

The Mangamingi-1 well (TAG 100%) in PEP 38758, onshore Taranaki, New Zealand, is now ready for completion and testing. Certain equipment and personnel from the Ratanui-1 drill site will be moved immediately to the Mangamingi site. TAG anticipates commencement of production testing by the end of the month.

Cheal:

The Cheal development program in PMP 38156-S (TAG 30.5%), onshore Taranaki, is progressing on-time and on-budget. Production testing has now been initiated on the recently drilled Cheal-B site wells. Cheal B-1 is currently under test and has averaged 170 BOE/D (133 BOPD + 225 mcf/d) in the first seven days of the test program. "Cheal B-1 will be another solid cash flow contributor to the overall Cheal production scheme. This project is creating a strong foundation for TAG's continuing exploration efforts in New Zealand," says TAG Oil President Drew Cadenhead.

Kate:

On February 8th 2007, TAG announced the cancellation of the Kate-1 well in the Canterbury Basin, South Island New Zealand. TAG reiterates the company has at all times been prepared to honor its obligations under an Agreement with Green Gate Limited to explore the onshore portion of PEP 38260. TAG had already completed all necessary seismic work and arranged drilling contracts and pre-drilling construction work in anticipation of spudding Kate-1. President Drew Cadenhead says, "This was a difficult decision for TAG to make, but we felt it was inappropriate to continue on with the well when there was uncertainty relating to working interests in the permit. Drilling in these circumstances would have meant putting significant TAG shareholders' funds at risk." TAG is continuing to take legal advice.

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 3,105,211 gross acres (net 1,428,393). 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, , [phone]


DATASOURCE: TAG Oil Ltd.



CONTACT: Garth Johnson, , [phone]

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