TAG Oil Provides Cheal Update

    VANCOUVER, Nov. 1 /CNW/ - Independent Canadian oil and gas production and
exploration company TAG Oil Ltd. (TSX-V: TAO and OTCBB: TAGOF) announced today
that the operator of the Cheal oil field, Austral Pacific Energy has informed
TAG that the Cheal A3X production well located at the main Cheal A site has
been temporarily shut-in due to mechanical problems. As a result, the daily
production at Cheal has reduced to approximately 140 barrels of oil per day
gross. Austral's preliminary investigation has indicated that pressure and
fluid loss was caused by a leak in the production casing. A review of remedial
options for the well has been instigated and the operator will implement a
temporary solution to re-establish production over the next two weeks.
    Following this operation, the well will be monitored to determine if
further remedial work is necessary, including the possibility of a work-over
which would be scheduled for December 2007.
    The operator of the permit also informed the Company that the planned tie
in of the B2 and B3 wells into the Cheal Production Station is progressing
according to schedule. The wells, which are located at the satellite Cheal B
site, were shut-in as part of the installation of the permanent connections to
the production facility and are scheduled to return on-stream by December 15,

    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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