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Corporate Presentation Technology, Exploration, Discovery: The Dynamic Face of TAG April 2010


Disclaimer

Undiscovered Resources and BOE Undiscovered Hydrocarbon-In-Place (“OOIP�, equivalent to undiscovered resources) is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. There is no certainty that any portion of the undiscovered resources will be discovered or that, if discovered, it will be economically viable or technically feasible to produce. The term "barrels of oil equivalent" or "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet (6 mcf) to one barrel (1 bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements Statements contained in this presentation 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 presentation. 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 TAG Oil and its independent evaluator have made, including TAG Oil's most recent reports in Canada under National Instrument 51-102. 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 presentation.

Š 2010 Tag Oil Ltd., www.tagoil.com

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Corporate Overview

Why TAG?

© 2010 Tag Oil Ltd., www.tagoil.com

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100% of Cheal oil discovery; new $35 million facility

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Core acreage in the Taranaki Basin and 2.4 million acres in the East Coast Basin

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TAG optimization to increase Cheal value significantly through increased production and better reserve recovery factor

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AJM undiscovered resource potential of 12.65 billion barrels OOIP (p50) of unconventional shale play acreage

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Sproule undiscovered resource potential of 1.736 billion barrels OOIP (p50).

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Significant growth potential through development & exploration drilling

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Corporate Overview

Where We Are Today § Focus on New Zealand: stable, fiscally attractive, under-drilled § Cheal oil pool: 100% working interest, 2p 530,000 boe, immediate reserve growth anticipated § Daily production: ~300 bbls/day § Working capital: $10 million, no debt, profitable, high net-back production

Capital Structure § § § § § § © 2010 Tag Oil Ltd., www.tagoil.com

Shares Outstanding: 29,913,231 Insider shares (32%): 9,641,501 Fully Diluted: 31,800,016 Options: 1,886,785 / $1.25 - $6.50 Recent Price: $2.65/sh Debt: NIL 4


Corporate Overview

Together for Seven Years, Focused on New Zealand § Garth Johnson CEO, CGA, 12 years focused on New Zealand acquisition, development and exploration § Drew Cadenhead COO, P.Geol., 30 years experience, the last 10 focused on New Zealand § Blair Johnson CFO, CA, 15+ years of international experience in corporate finance, project management, governance and accounting § Carlos Kazianis BA, 12 years of international experience in field operations, previously a senior advisor to the Petroleum and Minerals Investment Unit of New Zealand's Crown Minerals § Alex Guidi, 25 years of leadership experience with international oil and gas companies; pioneered exploration activity and numerous discoveries in New Zealand and Papua New Guinea for the last 17 years § Jack Doyle, P.Eng., over 30 years experience in the Canadian oil and gas business focussed on drilling, completions, production and facility engineering departments.

© 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin Overview

Taranaki At A Glance § Proven Basin: 528 million barrels of oil and 6.9 TCF of gas reserves § 2008 production: 58,400 bbls/d, 433 mmcf/d § Only 125 wildcats drilled since 1955 § TAG is the 100% owner of reserves, production and infrastructure

Source: New Zealand Ministry of Economic Development. The source of the information was independent; however, the Company was unable to confirm that this information was prepared by a qualified reserves evaluator or auditor in accordance with the COGE Handbook. © 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin: PMP 38156-S

Cheal Exploration and Appraisal Play Fairway

§ Shallow Oil Pool: 2P = 530,000 boe § Presently producing ~300 bbls/d § All wells tied into the TAG-operated facility § Plant capacity: 2,000 bbls/d § High net back oil (op-costs @ $19/bbl) § Optimization upside in existing wells expected to increase reserve values significantly § 3D coverage of the entire area § Numerous development and exploration drilling prospects identified § New Formation to add significant reserves

Production and Development Play Fairway © 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin: PMP 38156-S

Cheal Optimization § The goal: to increase reserve recovery and cash flow cost effectively § Frac wells with wax inhibitor, and install continuous inhibitor injection at the perfs § Change completions from hot water jet pump lift to downhole heating with gas lift, to artificially heat near well bore and incoming oil stream § Hot water pump system to be utilized for water flood in the future Cheal Growth Potential

© 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin: PMP 38156-S

Cheal Development § Technically diligent step-out drilling focused on pool performance to date § Step-out development wells targeting two-million barrels of new reserves § Appraisal of by-passed shallower Formation targeting an additional two million barrels Channel/Levee Sandstone

Channel Sandstone

Lobe Sandstone

© 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin: PMP 38156-S

Frac Precedent: Ngatoro-7 § Frac captured 200% more reserves. § Increased production rate by 300%

© 2010 Tag Oil Ltd., www.tagoil.com

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Taranaki Basin: PEP 38748

Phase 1: Winchester § 7,910 Acres, 100% TAG-owned § High-graded, highly prospective exploration asset § Strategically located in the heart of the Taranaki discovery fairway, surrounded by producing fields § Drillable prospects identified by 3-D seismic modeling, indicating significant reserve discovery § Adjacent to the Ngatoro pool, sharing all critical technical factors with that proven area § Construction of first exploration well site and access road initiated in early 2010 § Drill one, maybe more, well(s) in the permit area in 2010 © 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin Overview

Underexplored § Frontier acreage with only 38 wildcats drilled since 1955 § Significant number of oil and gas seeps identified on TAG acreage § TAG is a first mover in recognizing an unconventional fractured oil-shale play

Control & Opportunity § 100% control of 2.4 million exploration acres in three permits § Independent evaluations identify midcase 14 billion barrels of undiscovered resource potential - high case: 39.8 billion bbls § Leverage North American technology in untested frontier © 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin Exploration

Stratigraphy & Strategy: TAG’s 3-Pronged Approach § Shallow (Waitangi Hill): Shallow oil (200m-300m) historic oil discovery revisited § Conventional: Miocene prospects (<1500m) 2-10 mm bbl / prospect potential reserve size § Unconventional: Widespread oil-shale opportunities (< 2000m) analogous to the Bakken and Barnett

Undiscovered Resource Potential: Mid-case 14 billion bbls based on <10% of TAG land base © 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin: PEP 38348

Phase 1: Waitangi Hill § 530,535 acres, 100%-TAG owned § 1912 Bore hole still bubbling 50 degree API, sweet crude oil and gas today § Oil geochemically typed as Waipawa/ Whangai source § Historic well reported oil to surface from 200m @ 20-50 bbls/d § First of three Cored Strat wells now complete – shallow oil and gas at high pressure discovered § Further results to define shallow development potential and underlying source potential

© 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin: PEP 38349

Phase 1: Boar Hill § 1,695,266 acres, 100%-TAG owned § Potential for stacked conventional and unconventional targets § 4-way dip closure on Miocene through Paleocene Formations § Waipawa-Whangai fractured shale system widespread & thickly developed across area § Significant amount of oil and gas seeps § Boar Hill -1 exploration well: 1,600m - core and possibly complete shales

© 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin Fractured Shale

How New Zealand Shale Stacks Up Unit

Bakken

Waipawa

Barnett

Whangai

2700 – 3500

0 – 5000

1980 – 2590

0 – 5000

Net Thick (m)

10 – 50

10 – 60

15 – 60

300 – 600+

Primary Perm (microdarcies)

40 – 50

10 – 200

50

10 – 110

Bl-l Temp °C

80 – 110

70 – 110+

93

70 – 110+

TOC %

1.1 – 12

3.0 – 12

4.5

0.2 – 1.7

Vit Refl R

0.3 – 1.2

0.3 – 0.4

1.0 – 1.3

0.4 – 1.4

8 – 12

9 – 23

4–5

16 – 31

100k – 1,500k

TBD

80k – 1,500k

TBD

Depth (m)

Total Porosity % Reserves (BOE’s / well)

Barnett data: GNS NZ Gov’t, Field, Brad (2006), Curtis (2002), Hollis et al (2005) Bakken Data: Flannery, Jack; Kraus, Jeff; 2006 Search and Discovery Article #10105; Integrated Analysis of the Bakken Petroleum System, US Williston Basin; Waipawa, Whangai Data; GNS, NZ Gov’t; Francis, David; 2007Reservoir Analysis of Whangai Formation and Waipawa Black Shale, ; PEP’s 34348 & 38349, onshore East Coast Basin, Core Labs report 2007-12-18

© 2010 Tag Oil Ltd., www.tagoil.com

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East Coast Basin Fractured Shale

Leveraging North American Technology Horizontal drilling with multi-staged frac treatments have unlocked multi-billion barrel plays such as the Bakken and Barnett in North America

The Benefits of Technology: A 2500â&#x20AC;&#x2122; well with staged fractures, contacts over 400 times the amount of reservoir than a conventional vertical well through the same formation.

Š 2010 Tag Oil Ltd., www.tagoil.com

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Bringing Shale Value to New Zealand

“The winners in this game will be the ones that identify and actually control the best fields.” Apache VP on shale. Market Cap net of 2p reserves

Unconventional OOIP

Market premium per OOIP

TAG market cap using 4.5% premium

Market cap growth potential

Questerre

$933 million

21.5 billion

4.5%

TAG-best case

$81 million

14 billion

0.58%

$606 million

7.5X

TAG-high case

$81 million

40 billion

0.2%

$1.7 billion

21X

Questerre OOIP based on: 340,000 total acres TAG OOIP based on “best case”: 187,000 acres out of 2.4 million total acres TAG OOIP based on “high case”: 600,000 acres out of 2.4 million total acres © 2010 Tag Oil Ltd., www.tagoil.com


Go Forward Capex Program

Property

Operation

Minimum Program

Maximum Program

Taranaki Cheal

Optimization – Phase 1

$ 1.75 Million

Taranaki Cheal

Optimization – Phase 2

Nil

1.5 Million

Taranaki Cheal

2 In-fill Wells

Nil

4 Million

Taranaki 38748

1 to 3 Exploration Wells

2.5 Million

7.5 Million

Taranaki Cheal

2 Step-out Wells

Nil

4 Million

Taranaki Cheal

1 Horizontal Multi-Stage Frac

Nil

3.5 Million

East Coast 38348

1 to 3 Strat Wells

0.25 Million

0.75 Million

East Coast 38349

1 Strat Well

0.25 Million

0.25 Million

East Coast 38349

1 Unconventional Well

Nil

2.5 Million

$ 4.75 million

$ 25.75 million

Totals:

© 2010 Tag Oil Ltd., www.tagoil.com

$

1.75 Million

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In Conclusion

Creating Significant Value § Disciplined management: Plan to deliver value, mitigate risk and dilution § Optimization: Increase production, recoverable reserves and cash flow; no new wells needed § Cheal infill wells: Additional reserves and cash flow within proved and probable acreage at Cheal § Cheal step-out wells: 2P and 3P areas = significant new 1P reserves within Cheal § Exploration wells: Neighboring permits in Taranaki production fairway; hold reserves of 47M barrels of oil and 203 bcf of gas § East Coast unconventional resources targeting billions of barrels of oil © 2010 Tag Oil Ltd., www.tagoil.com

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Thank You. Corporate Headquarters 1050 Burrard Street Suite 2901 Vancouver, British Columbia Canada V6Z 2S3 Phone: 1-604-682-6496 Fax: 1-604-682-1174 Regional Exploration Office 11 Young Street PO Box 402 New Plymouth 4340 New Zealand www.tagoil.com

Š 2010 Tag Oil Ltd., www.tagoil.com


TAG Oil Corporate Presentation - 04/2010