Cheal Production and TAG Development Activities Continue as Planned: Clarification on Incorrect Reports in New Zealand Media

VANCOUVER, Nov. 21, 2011 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), a Canadian-based production and exploration company with extensive operations in New Zealand, advises the Taranaki Daily News has incorrectly reported that TAG had stopped production at the Cheal Oil and Gas Field.

This article entitled "Drilling opposition puts 42 out of work" reported that "TAG Oil Ltd. stopped production while it waits for resource consent for 18 new wells at its Cheal sites near Stratford." This report is inaccurate.

TAG wishes to clarify that production has not stopped at Cheal or at Sidewinder and that all other Taranaki operations at both oil and gas fields continue uninterrupted. Other than the planned drilling of TAG's Cheal-B6 well active operations presently underway include:

The report by Taranaki Daily News correctly reports that there is a delay to one well (Cheal-B6), which was planned to be drilled prior to the end of 2011. This delay relates to a hearing with the Stratford District Council to approve the consents requested for TAG to continue drilling up to an additional 18 wells at Cheal.

"Although certain media reports were incorrect and concerning when read, TAG is proud of what has been accomplished to date at Cheal and Sidewinder,  Commented TAG Oil CEO, Garth Johnson. "We are pleased that the consenting process is well underway at Cheal and we expect to have resolution shortly. To put this in perspective, the consenting delay reported at Cheal relates only to the final well planned for this year, after 10 consecutive discovery wells at Cheal and Sidewinder. TAG is still hopeful to spud the Cheal-B6 well prior to the end of the year if the consenting process is completed shortly. TAG continues to work hard to conduct all operations to the highest standards possible and we realize it's important to New Zealand and TAG to conduct its business responsibly."

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% control over all its core assets, including oil and gas production infrastructure, TAG is anticipating 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 1,300 sections of land in the onshore Taranaki and East Coast Basins of New Zealand's North Island.

In the East Coast Basin, TAG Oil is pursuing the major unconventional resource potential estimated in the fractured shale 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 Shale 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 Oil. Such statements can 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, goals, or future plans relating to the seismic, testing and drilling programs in Taranaki are 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, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, and changes in the regulatory and taxation environment. These forward-looking statements are based on certain factors and assumptions, including factors and assumptions regarding the management's views on the oil and gas potential in the Permits, the success of any operations, and the costs necessary to complete the operations.

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 related to upcoming operations, production forecast modeling and other items, are also set forth in, filings that TAG Oil and its independent evaluator have made, including TAG Oil's most recent reports in Canada under National Instrument 51-101.

TAG Oil 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.