TAG Oil Updates Cheal Facility Operations



    VANCOUVER, June 25 /CNW/ - Independent Canadian oil and gas company TAG
Oil (TSX-V: TAO/OTCBB: TAGOF) announced today the Cheal Production Facility
(TAG: 30.5%) is nearing completion and pre-commissioning operations are now
concurrently underway with final construction activities. The plant is
scheduled for fulltime production start-up by mid-September. Storage and
marketing concerns previously reported have now been addressed and a staged
facility start-up is scheduled to begin in late August. Initial oil production
is forecast to ramp up from 350-400 bbls/day (107-122 bbls/day net to TAG)
currently producing through temporary facilities to 800 bbls/day (244 bbls/day
net to TAG) once the Cheal Production Facility is fully operational. Further
scheduled development drilling from the A-Site in the first quarter of 2008 is
anticipated to increase production to 1400-1500 bbls/day (427-458 bbls/day net
to TAG).

    About TAG Oil:

    TAG Oil Ltd. is an independent Canadian oil and gas exploration and
production company with a well-balanced portfolio of producing and exploration
assets totaling 560,016 gross acres (net 203,334) in and around the Taranaki
and East Coast Basins of New Zealand.
    TAG Oil trades on the TSX Venture Exchange (TSX-V) with the ticker symbol
TAO, and on the OTCBB with the symbol TAGOF. More information is available on
the Company's website at: www.tagoil.com.

    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 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.




For further information:

For further information: Drew Cadenhead, drew.cadenhead@tagoil.com,
64-6-769-6065; Garth Johnson, gje@tagoil.com, (604) 609-3350


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