2009-08-05-2009-08-01-2009-08-01

Acquired remaining 66.67% interest 7,910-acre permit in Taranaki Basin, NZ.

Tag Oil Ltd., Vancouver, (TSX: TAO) has acquired the remaining interest in Taranaki Basin acreage from New Zealand-based Austral Pacific Energy Ltd. In return for a 66.67% interest in the 7,910-acre permit, Tag, which now has a 100% interest in the New Zealand acreage, has agreed to give Austral Pacific $50,000 in cash; an initial 5% overriding royalty on future net oil sale revenue per barrel for the first 200,000 barrels of oil produced and certain permit work commitments to be completed in the next 20 months. Tag CEO Garth Johnson says, "We are pleased to acquire the remaining interest in this strategically located onshore acreage situated in the heart of the Taranaki discovery fairway. A number of drillable prospects have been identified by 3-D seismic that indicates the potential for significant upside. This high-grade exploration asset is highly complimentary to our Cheal production permit by providing exploration opportunities with a reasonable risk profile."