TAG Oil's Commitment to Exploration

Exploration Supported by Ongoing Production and Growing Reserves
TAG Oil's long-term strategy of production and reserve growth has been (and will continue to be) driven by its gas and oil exploration activities, which are focused exclusively on the Company's large acreage positions in New Zealand's Taranaki, Canterbury and East Coast basins.

As compelling as TAG's exploration assets are, risk management is a core business strategy. So the Company mitigates exploration risk with solid production and a growing reserve base at our Sidewinder and Cheal oil and gas fields, as well as through lower risk drilling targets in and around these existing discoveries.

Multiple Conventional and Unconventional Oil and Gas Targets
In addition to lower risk oil and gas exploration and production activities, TAG is committed to pursuing the significant resource potential identified in the numerous high-graded exploration opportunities targeting various play styles at relatively shallow depths.

With 100% control over all core exploration assets, TAG's activities are geared towards pursuing the high-impact potential that has been identified and independently estimated in prospects such as Boar Hill, Kaheru Offshore JV, Waitangi Hill and the major condensate-rich gas Kapuni Formation discoveries made at Cardiff. In addition to TAG's inventory of more than 100 high-impact drilling prospects, there are significant unconventional opportunities demonstrated in the Company's widespread tight oil plays.

Leveraging this extensive exploration portfolio and the 14-billion barrel resource opportunity it represents, TAG Oil is firmly positioned to pursue and capitalize on the many exciting exploration opportunities that can drive production and reserve growth.