Cheal Oil and Gas Discovery
Petroleum Mining Permit 38156

TAG controls a 100% interest in the Cheal Oil Field, a relatively shallow multiple zone oil and gas discovery in the Mt. Messenger Formation (1800m) and the shallower Urenui Formation (1400m). PMP 38156 is situated in the main play area of the onshore Taranaki Basin, and is prospective for high-impact reserve and production growth.

Since acquiring 100% interest in the Cheal field in October 2009, TAG has resumed development successfully utilizing modern completion technologies that have proven to be effective in increasing reserves and production. In February 2011, TAG commenced an ongoing program to fully exploit the lightly explored shallow zones at Cheal.

A strong base of geotechnical and engineering data coupled with TAG's 3-D seismic coverage of the entire 7500-acre Cheal Mining Permit provides a clear foundation for future asset development. Furthermore, with the Cheal production facility in the heart of the development area, every new well can be brought on-stream quickly, efficiently and cost-effectively.

Future Cheal Development Over the next several years, TAG will be drilling numerous "step-out" and exploration wells targeting lower risk, yet high-impact prospects identified across the remainder of the lightly explored 7500-acre Cheal permit area.