TAG Oil Closes $53.56 Million Bought Deal Financing

VANCOUVER, Nov. 17 /CNW/ - TAG Oil Ltd. (the "Company" or "TAG") (TSX-V: TAO) is pleased to announce that it has closed its previously announced bought deal common share public offering (the "Offering"). The Company sold, through a syndicate co-led by GMP Securities L.P. and Wellington West Capital Markets Inc. (collectively, the "Underwriters") a total of 10,300,000 common shares at a price of $5.20 per share for aggregate gross proceeds of $53,560,000. 

The Company has also granted to the Underwriters an over-allotment option, exercisable in whole or in part at any time on or up to 30 days after the closing of the offering, to purchase up to an additional 1,250,000 common shares at the same price for additional gross proceeds of up to $6,500,000. In the event that the over-allotment option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $60,060,000.

The Company plans to use the net proceeds from the Offering to increase production from the 100% owned Cheal Oil Field, to accelerate the exploration programme of conventional and unconventional resources in the Taranaki and East Coast Basins, New Zealand and for general corporate purposes.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

TAG Oil Ltd.

TAG Oil Ltd. is a Canadian-listed company (TSX-V: TAO) with extensive operations in New Zealand. With 100% control over all its core assets, including production infrastructure, TAG is anticipating significant production growth through development of multiple oil and gas discoveries in the Taranaki Basin and through high-impact exploration drilling on prospects identified over 3,500 sections of land.

In the East Coast basin, TAG is pursuing the major unconventional resource potential that has been demonstrated in the Waipawa Black Shale and Whangai Shale source-rock formations that are widespread across the Company's acreage. The geological characteristics of these oil-rich, naturally fractured, thermally mature formations compare favorably to fractured shale formations such as the Bakken Shale in the Williston Basin and Liassic Shale in the Paris Basin.

Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein constitute forward-looking statements, including statements concerning the exercise of the over-allotment option and the anticipated use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. The forward-looking statements included in this press release are made as of the date of this press release and TAG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

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 release.

For further information:

Dan Brown or Garth Johnson,
TAG Oil Ltd. 1-604-682-6496
Website: http://www.tagoil.com/