TAG Oil Updates Cheal Reserve Report



    VANCOUVER, Oct. 15 /CNW/ - Oil and gas producer and explorer, TAG Oil
Ltd. (TSX-V: TAO / OTCBB: TAGOF), reports that the company has initiated a
mid-year independent review of the reserves on its 30.5% interest in the Cheal
Oil Pool, onshore Taranaki Basin, New Zealand.
    The report will be completed by Sproule International Limited, a
subsidiary of Sproule Associates Limited, one of the largest and most highly
regarded geological, geophysical and petroleum engineering consulting
companies in North America.
    TAG Oil CEO, Garth Johnson, said "Our last Cheal reserve report dated
March 31, 2008 was completed just as the plant was being brought onto
permanent production. The Joint Venture has since drilled three wells, has
established more definitive operating costs and has adjusted the development
plan to recognize drilling results, production trends, changing market
conditions and lower oil prices. As a result of the combination of these
factors the Company's management believes there has likely been a decrease in
the net present value of the Cheal reserves since our last reserves report.
Although TAG remains in a strong financial position, we want to keep our
shareholders informed if there is a material difference."

    About TAG Oil Ltd.

    TAG Oil Ltd. is an international oil and gas production and exploration
company with holdings in the Taranaki Basin, New Zealand. TAG is poised to
grow through existing profitability and through development and exploration on
the Company's high-graded onshore Taranaki acreage.

    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, but are not limited to, filings that the Company
and its independent evaluator have 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: Garth Johnson, CEO, (604) 609-3350, Website:
http://www.tagoil.com


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