TAG Oil Ltd. - Over-Allotment Option Exercised in Full

VANCOUVER, Nov. 26 /CNW/ - TAG Oil Ltd. (the "Company" or "TAG") (TSX-V: TAO) is pleased to announce that with respect to its recently closed bought deal common share public offering (the "Offering"), the syndicate of underwriters, co-led by GMP Securities L.P. and Wellington West Capital Markets Inc. (collectively, the "Underwriters"), have exercised the over-allotment option (the "Option") granted to them.  Pursuant to the Option, the Underwriters have acquired an additional 1,250,000 common shares of the Company at a price of $5.20 per share for gross proceeds to the Company of CDN$6,500,000 bringing the aggregate gross proceeds of the Offering to CDN$60,060,000. 

The Underwriters received a cash commission equal to 6% of the gross proceeds raised through the exercise of the Option.

The net proceeds from the exercise of the Option will be used for working capital 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 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 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/