TAG Oil Ltd (TAOIF)

[DANA1]

FROM ANOTHER BOARD

Thought you might be interested in this.

A NEW MEMBER HERE, SPOKE TO GARTH JOHNSON TODAY AND FIGURED I WOULD SHARE WHAT HE SAID. EAST COAST WILL BE DRILLED IN NOVEMBER, CHEAL PRODUCTION IS 1000 BOE PER DAY 85% OIL, THIS IS ENOUGH ALONE TO SUPPORT DRILLING OPERATIONS ON EAST COAST. MORE SIDEWINDERS 5-8 TO BE DRILLED BEFORE NOVEMBER. SIDEWINDERS ARE MOSTLY GAS, SIDEWINDER 1 CAN PRODUCE UP 5000 BOE PER DAY BUT IT IS PURPOSELY CHOKED BACK. SIDEWINDERS WILL FAR EXCEED WHAT TAG ANTICIPATED IN PRODUCTION. THEY CAN NOT DRILL ON THE EAST COAST BEFORE NOVEMBER BECAUSE OF SHEEP AND THEIR YOUNG, THIS IS STIPULATED IN THE LEASE AND IT IS TO PROTECT THE ECOLOGY. THEY FEEL THAT THEY HAVE THE TRAP ROCK, THE SOURCE ROCK AND A 500 METER THICK SHALE ON THE EAST COAST. THE UNANSWERED QUESTION IS WHETHER THE OIL WILL FLOW. THIS COULD POTENTIALLY CHANGE THE COMPANY. THE EAST COAST WILL BE AGGRESSIVELY TARGETED WITH MANY POTENTIAL SWEET SPOTS AND PLENTY OF INCOME FROM CHEAL AND SIDEWINDER AND 60 MILLION$ IN THE BANK. THE SKY IS THE LIMIT HERE....