TAG Oil Provides Corporate Update

    VANCOUVER, May 27 /CNW/ - TAG Oil Ltd. (TSX-V: TAO/OTCBB: TAOIF), advises
that it has filed a Form 15F with the U.S. Securities and Exchange Commission
(the "SEC") with the intention of voluntarily terminating the registration of
its common shares under section 12(g) of the Securities Exchange Act of 1934
(the "Exchange Act"). TAG is current with all reporting requirements under the
Exchange Act and expects that termination of registration will become
effective 90 days after its filing with the SEC. As a result of this filing,
TAG Oil's reporting obligations with the SEC will immediately be suspended
and, once effective, the Company's shares will no longer be quoted in the
United States on the Over-the-Counter Bulletin Board (the "OTCBB").
    TAG's common shares will continue to trade in Canada on the TSX Venture
Exchange (Tier 1) under the symbol "TAO" and the Company will continue to
comply with its Canadian continuous disclosure obligations by making filings
with the applicable Canadian securities regulators via the System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. These
continuous disclosure filings will include the Company's consolidated
financial statements prepared in accordance with Canadian generally accepted
accounting principles.
    In deciding to terminate the registration of its common shares under the
Exchange Act, the Company considered that the TSX Venture Exchange has been
the Company's primary trading market since 2005 and has accounted for 98% of
trading volumes over the past year. Further, administrative burdens and costs
associated with being a U.S. reporting company have significantly increased in
the past few years and will continue to increase in coming years, particularly
in light of SEC Sarbanes-Oxley requirements. The Company believes that these
administrative burdens and their associated costs outweigh the benefits
derived from the Company's registration with the SEC.

    About TAG Oil Ltd.

    TAG Oil Ltd. is a Canadian based company with a 30.5% interest in the
Cheal Oil field and a prospect portfolio in the onshore Taranaki Basin, New
Zealand. TAG is poised to grow through existing profitability, and through
development and exploration on the Company's high-graded acreage. TAG remains
in a strong financial position, with sufficient working capital to maintain
operations and meet all commitments for the foreseeable future.

    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.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.

For further information:

For further information: Garth Johnson, CEO, (604) 609-3350, Website:

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