TAG Oil Announces Annual and Special Meeting Results and Completion of Transactions

    VANCOUVER, Dec. 21 /CNW/ - Independent Canadian oil and gas production
and exploration company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF) announced
today that the shareholders elected Messrs Garth Johnson, David Bennett,
Dan Brown and Giuseppe (Pino) Perone to the Board of the Company at its annual
and special meeting held on December 21, 2007. Shareholders also approved the
Company's share option plan.
    The Company is also pleased to announce that it has completed the cash
sale of its interest in PMP 38157 to companies associated with Greymouth
Petroleum. Garth Johnson, TAG Oil CEO commented, "Although we initially had
some differences with regard to PMP 38157, it was encouraging that we were
able to work together to resolve these differences in a way that enables our
companies to move forward on good terms."
    In other news, the Company has executed formal agreements with New
Zealand based Genesis Energy to complete the sale of its 15.1% interest in
PEP 38738-D and PMP 38156-D containing the Cardiff deep gas prospect for a
combination of cash and a 1% royalty on any future production, as previously
announced. The transfer of the interest is conditional to formal consent being
received from the remaining joint venture parties and the Ministry of Economic
Development in New Zealand.
    The Company has also assigned its interest in PEP 38342, located on the
East Coast basin of New Zealand, to the permits operator, Discovery Geo
Corporation. In return, TAG will receive a combination of cash and a 1.11%
royalty on any future production from this permit. The assignment is subject
to the consent of the Ministry of Economic Development in New Zealand.
Commenting further, Garth Johnson, TAG Oil CEO said, "After considering our
revised risk profile and the energies and capital required of the Company
relating to our core projects such as the Cheal oil field, we felt that it was
in TAG's best interest to assign our interest in the East Coast basin, while
maintaining the prospects upside through a royalty.
    "I thank our shareholders for their support of TAG's board at the AGM and
throughout the past year. We look forward to building the Company based on
this support and on the changes we have implemented to date. I feel that as a
result of these changes, a lot of hard work and having made some difficult
decisions, we have strengthened TAG in a way that will allow the Company to
benefit from cash flow provided by Cheal and we have positioned TAG to have
the ability to grow through a combination of production, exploration and new

    About TAG Oil:
    TAG Oil Ltd. is an independent Canadian oil and gas exploration and
production company with international operations in the Taranaki Basin of New

    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, gje@tagoil.com, (604) 609-3350

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