In return, Rift will
earn a 65% interest in Petroleum Prospecting License 235 in PNG's Foreland
Basin.

Cheal
At the nearby Cheal oil field, Jet Pump Production Test #1 (JPPT#1) in the
Mt Messenger pay zone in the Cheal-A4 well has now been completed." All statements in this release that address
future production, reserve potential or exploration drilling, are
forward-looking statements.
"MCorp . Cadenhead.

103 southland

WELLINGTON, New Zealand, Austral Pacific
Energy Ltd.

Contact: Investor Relations: tel: 1 800 3043631 USA/Canada
+644 476 2529 New Zealand

Web site: http://www.com

This release includes certain statements that may be deemed
"forward-looking statements.

wairarapa marlborough

Over a 10
day interval of near continuous production during January, the well flowed in
a stable manner, and produced a total of approximately 3,000 barrels of oil
and 1,500,000 cubic feet of gas.
develops actionable solutions that inform and motivate target audiences. As a result there is no representation
by TAG Oil that actual results realized in the future will be the same in
whole or in part as those presented herein.

103 canterbury

With exploration permits
totaling 4,052,891 gross acres (net 1,500,330) TAG Oil is one of the largest
holders of prospective acreage in New Zealand.

103 zealand

CEO Dave Bennett said, "We are delighted to have finalized this agreement,
which ensures the drilling of the highly prospective Douglas-1 well this year.

Expanded Relationship to Include Investor and Media Relations Counsel,
Strategic Planning, and Corporate Communications

CALGARY, Alberta, Independent Canadian
oil and gas exploration company TAG Oil (OTC Bulletin Board: TAGOF;
TSX-V: TAO) announced today that is has retained MCorp.mcorponline.

1994).

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Papua New Guinea: PPL 235
Austral Pacific has now entered into a formal agreement with Rift Oil PLC
(a UK company) whereby Rift will contribute the first US$6M of expenditure on
the Douglas-1 exploration well in Papua New Guinea (PNG). Employees may also own, buy and sell securities of the Company.

wellington nelson

Following completion of JPPT #2,
a third nozzle size will be evaluated, then testing will be conducted in a
similar manner on the shallower Urenui oil pay in this well. will provide additional investor and media relations services for
the Company , as well as strategic planning and corporate communications. drives acquisition, retention and loyalty throughout the customer
relationship lifecycle. professionals work from offices in the San Francisco Bay Area
and Portland, Oregon.

Its area is 103,736 sq mi (268,676 sq km).

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Corporate
Of the 2 million New Zealand tradeable warrants issued in January 2004,
only 15,500 remain unexercised and have now been cancelled. Investors are cautioned that any such statements
are not guarantees of future performance and that actual results or
developments may differ materially from those projected in the forward-looking
statements. has proven that they understand the true meaning of communications
for our shareholders -- keeping them informed, and helping to clarify the
sometimes complex data that highly active junior oil and gas explorations like
ours generate" stated Mr.

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 Oil. Actual results may differ
materially from the results predicted, and reported results should not be
considered as an indication of future performance.

wellington sq

More information about TAG Oil is available online at http://www.tagoil.

canterbury 676

austral-pacific.
According to Drew Cadenhead, CEO of TAG Oil, "We're pleased to expand our
relationship with MCorp. Their
proven ability to both quantify the value and improve the performance of our
communications was also an important factor in our choice .

736 southland

A similar testing
program will then be conducted on Cheal-A3X, which has previously flowed
unassisted at rates averaging 300 barrels of oil per day.tagoil. This regional
focus supports the Company's mandate to explore in countries with low
political risk and low government taxation, through the establishment of a
portfolio of both high risk/high reward exploration projects and low
risk/moderate reward acreage in producing basins. Recognized for both strategic
and creative excellence by dozens of organizations including the Direct
Marketing Association's ECHO award, the Western Art Directors Club and Print
Magazine, MCorp.

New Zealand is an island country in the South Pacific Ocean with a population of near 3.

chatham kermadec

The Douglas Prospect is situated in a lightly explored area of the foreland
basin, where earlier wells have clearly demonstrated that oil and gas is
generated ."
MCorp.

103 hawkes

Austral Pacific will continue as operator of the joint venture with a
35% interest in Douglas-1 and the PPL 235 license.
During the first three days of JPPT#2, the well has averaged rates
approximately 40% higher than during JPPT#1. "TAG Oil understands the dynamics of exploration in the
international energy market," says Michael Hinshaw, Managing Partner of
MCorp.

About TAG Oil:
TAG Oil Ltd.
MCorp. Known
for its blend of strategy, creativity, results and performance measurement,
MCorp. Currently, principals of MCorp.

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.

northland 676

"
TAG currently has several drillable exploration prospects in its
portfolio, and anticipates drilling four wells in the Taranaki Basin and one
in the Canterbury Basin over the next 12 months, in addition to flow-testing
of the Supplejack wells in PEP's 38741 and 38765.

kermadec auckland

Austral Carried in US$6 Million Farm-Out

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, a San Francisco Bay
Area-based strategic brand and marketing consultancy , as its media, investor
and corporate communications agency of record. After a thorough review of more traditional investor
relations firms, we made the decision to choose a consulting firm that
understands all aspects of our business, including the importance of business
strategy, investor and corporate communications, and the role technology plays
in accessing and presenting information related to TAG Oil's operations.

4 million (c.

plenty wairarapa

Success
at Douglas-1 will enhance the likelihood for further discoveries within the
license area. It is anticipated that
Cardiff-2B will reach its target depth near 4,900m (16,000 feet) later in
February and will be completed for testing.com.

736 nelson

(TSXV and NZSX: APX; OTC Bulletin Board: APXYF)."
The Douglas Prospect is mapped as covering an area of some 15,000 acres
(60 sq km), with PPL 235 incorporating this and several other identified
drilling targets within a total area of 720,000 acres (2,900sq km).com
Email: ir@austral-pacific.

About MCorp.

oceania wellington

New Zealand
Cardiff
The Cardiff -2B deviation well is now being kicked off past a cement plug
in the Cardiff-2A sidetrack at a depth of 3950m (13,000 feet). has been engaged for twelve months, receiving a monthly retainer of
$6,250 plus expenses, and fees for additional initiatives as strategy
dictates.com) is an independent Canadian oil and gas
exploration company with a well-balanced portfolio of world-class assets in
and around the Canterbury and Taranaki basins of New Zealand. (http://www., a California Corporation, is a strategic brand and marketing
consultancy focused on increasing brand and marketing performance for its
clients .

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MCorp. More
information about MCorp. can be found at http://www. Factors that could cause
actual results to differ from those contained in the forward-looking
statements are set forth in filings that the Company has made, including the
Company's most recent reports in Canada under National Instrument 51-102 and
in the United States under Forms 20-F and 6K.

zealand marlborough

The Cardiff-2A sidetrack drilled to a depth of 4072m (13,360 feet) within
the upper part of the Kapuni Formation, with hydrocarbon indications similar
to those at equivalent depths in Cardiff-2, before drilling complications led
to the plugging back of the Cardiff-2A wellbore. Built on two decades of expertise in the disciplines of research,
strategic planning, branding and integrated marketing communications, MCorp.

manawatu canterbury

com), a wholly-owned subsidiary of The Innes
Group, Inc. control 26,000 shares in
TAG Oil. Actual results may vary materially from the
information provided in this release.

The capital city is Wellington .

marlborough gisborne

A larger down-hole jet pump nozzle is now being evaluated, and Jet-Pump
Production Test #2 (JPPT#2) is presently in progress.

TAG Oil Names MCorp. as Communications Consultancy and Agency of Record

, "and 2006 promises to be an exciting year, as TAG continues to expand
its drilling program in New Zealand.

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Production
testing will then be conducted on both pay zones together.com. (http: //www.
TAG Oil trades on the TSX Venture Exchange with the ticker symbol TAO, and
on the OTCBB with the symbol TAGOF.mcorponline.

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Representative clients range from funded start-ups to
the Fortune 500, and include organizations such as Comerica Bank, Novell, GE,
Fireman's Fund, British Telecom and Wells Fargo.