TAG Oil Ltd. provided update on its operations in New Zealand and Australia. New Zealand Exploration Drilling. New Zealand Exploration Drilling: TAG Oil and its joint venture partner (Melbana Energy - 30% WI) have begun operations on the Pukatea-1 exploration well. The Nova-1 drill rig is expected to be mobilized to the drilling pad by mid-January, with drilling expected to commence on or around January 25, 2018 from the existing production pad. The Puka permit (PEP 51135, 70% TAG Oil) covers an area of approximately 85km2 (21,000 acres) and is located close to existing infrastructure and several low-cost alternative development paths. The primary objective of the Pukatea-1 well will be the deep Tikorangi Limestone formation, which will be drilled to a total depth of ~3,170m. The Pukatea-1 well is adjacent to the Waihapa oil field that has produced more than 23 MMbbl from the Tikorangi Limestone and where individual wells produced up to ~5,000 bbl/d. In addition to the high impact Tikorangi Limestone exploration opportunity, TAG Oil has identified a secondary objective to intersect in the shallower Mt. Messenger formation while drilling on the way to the deeper target. This has resulted in some technical adjustments to the drilling plan, which include adding an additional wireline logging run for data gathering and an additional casing string to isolate the Mt. Messenger formation. The updated design for the wellbore path is expected to intersect the Mt. Messenger sands approximately 150m east of the Puka-2 wellbore (currently shut-in and awaiting a work-over). The Puka-2 well tested 719 bbl/d of oil over a 12-hour period on a 22/64" choke back in April 2013. In Australia, production from the Bennett field is approximately 20 bbl/d of light, sweet crude following improvements to the surface facilities at PL-17 and a pump change on the Bennett-4 well. Further, TAG Oil is encouraged by the continued steady production from the field despite it having been on production for approximately 50 years. The current mapping (ahead of the interpreted 3D seismic data) indicates the potential for further upside. TAG Oil will continue its work on enhancing production from the existing wells on the block. TAG Oil's interpretation and processing of the first modern 3D seismic recently acquired over of the core of the PL-17 acreage is nearing completion. The 70km2 of 3D seismic will provide an enhanced subsurface understanding of the Bennett and Leichardt fields and allow various drilling targets to be identified, with future drilling likely occur in late calendar 2018 or 2019. Further, with the significant increase in Brent Oil prices over the last few months (~50% in six months) TAG Oil will generate more cashflow per barrel of oil produced and may see an appreciation in its equity value as the stock market starts to appreciate the strengthening fundamentals in the market.

For the year ending March 31, 2018, the company expects to exit fiscal 2018 at March 31, 2018 in New Zealand with production of ~1,300 boe/d.