October 5, 2009 (FinancialWire) — Oil and gas production and exploration firm TAG Oil Ltd. (TSX Venture: TAO) (OTCBB: TAGOE) said it plans to launch a normal course issuer bid to purchase up to 1,364,582 of its common shares through the facilities of the TSX Venture Exchange. The buyback represents around 10% of the company’s 16,809,722 outstanding common shares in the public float.

The company said the purchase will enable it to acquire its shares for cancellation. TAG officials maintain that the market price of the company’s common shares may not reflect their underlying value and that the purchase of common shares for cancellation will increase the proportionate interest of, and will be advantageous to, all remaining shareholders.

Tag said that the shares that may be repurchased over a twelve-month period.

Vancouver-based TAG Oil is a production and exploration company that, subject to final approvals, will own a 100% interest in the Cheal oil discovery located in the onshore Taranaki Basin of New Zealand.

The company plans to grow through further development and exploration of the Cheal mining license and other exploration acreage in close proximity to Cheal and on trend with other producing fields.

Through a business combination with Trans-Orient Petroleum (, TAG will also be exploring an area of the East Coast basin, also in New Zealand.

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