TAOIF TAG Oil Ltd New (QX)

VANCOUVER, Sept. 17, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX:
TAOIF), announces that the Cardiff-3 well located in Petroleum Mining
License 38156 was spudded on September 2, 2013 and is presently
drilling at a depth of approximately 1000 meters. The Cardiff-3 well
will take approximately 30 more days to reach its total projected depth
of 4,900 meters.

Cardiff-3 is the first of three back-to-back deep wells being drilled
(Cardiff-3, Heatseeker-1 and Hellfire-1) by TAG (100%) targeting
Taranaki's successful Kapuni Formation.

All three wells are situated within the Taranaki Basin's main deep
discovery fairway, where proven producing reserves of 6.9 TCF of gas
and 372 million barrels of oil/condensate have been discovered in the
Eocene-aged Kapuni Formation so far. (Source: http://www.nzpam.govt.nz/cms/petroleum/facts-and-figures)

Combined, the assessed "mid-range" resource potential for the Cardiff,
Heatseeker and Hellfire prospects is 477 billion cubic feet of natural
gas and 18 million barrels of associated condensates, as follows:

Sproule International Limited has independently assessed the resource
potential for Cardiff, and TAG's internal qualified reserve evaluator
has assessed the resource potential of the Heatseeker and Hellfire
prospects, all with an effective date of July 31, 2013. The resource
assessments in the table above have been made in accordance with NI
51-101 and the Canadian Oil and Gas Evaluations Handbook and are
supported by several existing commercialized Kapuni Formation
discoveries.

These deep wells are part of TAG's 11 well drilling campaign in
Taranaki, which will be completed over the next six months. This
program consists of a combination of development drilling, appraisal
and exploration drilling: TAG currently has two drill rigs actively
operating with a third rig to begin operating on TAG controlled land
shortly.

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with
operations focused exclusively in New Zealand. With 100% ownership over
all its core assets, including extensive oil and gas production
infrastructure, TAG is enjoying substantial oil and gas production and
reserve growth through development of several light oil and gas
discoveries. TAG is also actively drilling high-impact conventional and
unconventional exploration prospects identified across more than
2,669,780 net acres of land in New Zealand.

The resource estimates in this news release were prepared with an
effective date of July 31st, 2013. The estimates for Cardiff have been
externally prepared by Sproule International Limited and the remaining
estimates were prepared by an employee of TAG Oil Ltd. both of which
are qualified reserve evaluators in accordance with NI 51-101 and the
Canadian Oil and Gas Evaluations Handbook.

Cautionary Note Regarding Forward-Looking Statements:

Statements contained in this news release that are not historical facts
are forward-looking statements that involve various risks and
uncertainty affecting the business of TAG. Such statements can be
generally, but not always, identified by words such as "expects",
"plans", "anticipates", "intends", "estimates", "forecasts",
"schedules", "prepares", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
These statements are based on certain factors and assumptions
including:

A. All estimates and statements that describe the Company's objectives,
goals, production rates, optimization, infrastructure capacity and or
future plans relating to the seismic, testing, work over and drilling
programs in the Taranaki, Canterbury and East Coast Basins are
forward-looking statements under applicable securities laws and
necessarily involve risks and uncertainties including, without
limitation: risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, volatility of
commodity prices, imprecision of reserve estimates and production
guidance, environmental risks, competition from other producers, and
changes in the regulatory and taxation environment. These
forward-looking statements are based on certain factors and
assumptions, including factors and assumptions regarding the
management's views on the oil and gas potential in TAG's permits, well
performance and production rates, the success of any operations,
completing infrastructure and the costs necessary to complete the
operations; and

B. Those relating to TAG Oil's exploration and development of its oil
and gas properties within the Cheal and Sidewinder project areas, the
production and establishment of additional production of oil and gas in
accordance with TAG Oil's expectations at Cheal and Sidewinder, well
performance, drilling, the completion of new infrastructure at Cheal
and Sidewinder, optimization, the increase of cash flow from new
production, expected growth, results of operations, performance,
prospects, evaluations and opportunities. While TAG Oil considers these
factors and assumptions to be reasonable based on information currently
available, they may prove to be incorrect. Actual results may vary
materially from the information provided in this release, and 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.

TAG Oil is involved in the exploration for and production of
hydrocarbons, and its property holdings with the exception of the Cheal
and Sidewinder project areas are in the grass roots or primary
exploration stage. Exploration for hydrocarbons is a speculative
venture necessarily involving substantial risk. There is no certainty
that the expenditures incurred on TAG Oil's exploration properties will
result in discoveries of commercial quantities of hydrocarbons. TAG
Oil's future success in exploiting and increasing its current reserve
base will depend on TAG Oil's ability to develop its current properties
and on its ability to discover and acquire properties or prospects that
are producing. There is no assurance that TAG Oil's future exploration
and development efforts will result in the discovery or development of
additional commercial accumulations of oil and natural gas. Other
factors that could cause actual results to differ from those contained
in the forward-looking statements are also set forth in filings that
TAG and its independent evaluator have made, including TAG's most
recently filed reports in Canada under National Instrument 51-101,
which can be found under TAG's SEDAR profile at www.sedar.com.

TAG undertakes no obligation, except as otherwise required by law, to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors change.

SOURCE TAG Oil Ltd.