TAG Oil Ltd (TAOIF)

[DANA1]

The Report lays out the development plan as follows:

Phase 1 (completion date January 2013) - drill & test 4 wells - 2 at Boar Hill & 2 at Waitangi plus complete 130 kms 2D Seismic.

Phase 2 (completion date April 2014) - drill & test 2 horiztontal wells in either North or South permit depending on success in Phase 1. Also complete 3D Seismic.

Phase 3 (completion date early 2015) Drill & test 4 more wells in either permit depending on success of P1 & P2, continue with 2D Seismic.

Phase 4 will be when drilling really ramps up starting in 2015 depending on successes of P1, P2 & P3.

NOTE: - Apache can withdraw at the end of any phase if they are not happy with the results.

There are only 10 wells planed to be drilled over the next 3 years, unless of course Apache & TAG make changes to the plan.

Looking forward to April & of course the Ranui 2 well currently being drilled by NZEC on the East Coast. By mid year we should have some sort of idea how successful the East Coast is going to be.