VANCOUVER, Sept. 25, 2019 /PRNewswire/ – TAG Oil Ltd. (TSX: TAO andOTCQX: TAOIF) is pleased to announce that it has closed its previously announced sale of substantially all of its New Zealand assets to Tamarind Resources Pte. Ltd. (the “Transaction”).
Following closing of the Transaction, TAG has ~US$30 million in cash and will continue to have exposure to the potential upside from all New Zealand assets sold as follows:
- 2.5% gross overriding royalty on production from PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki), PMP 60291 (Cheal East) and PEP 54877 (Cheal East).
- Up to US$5 million in event specific payments payable on achieving various milestones (first milestone, grant of PMP 60454 (Supplejack) conversion, has already been achieved triggering payment of US$500,000 at closing).
Toby Pierce, CEO of TAG commented, “We are very pleased to announce the closing of this transaction with Tamarind and would like to thank our team for their dedication throughout this process and to our shareholders for their patience. TAG will continue to assess its exploration prospects covering over 275,000 net acres in Australia, including the producing 25,000-acre petroleum mining license in the Surat Basin, along with other opportunities that are in the best interests of our shareholders.”
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is an international oil and gas explorer with assets in Australia and New Zealand. TAG currently has 85,239,252 shares outstanding.
Cautionary Note Regarding Forward-Looking Statements and Disclaimer
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 generally, but not always, be 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. All estimates and statements that describe the Company’s plans relating to operations are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary materially from the information provided in this release, and there is no representation by TAG that the actual results realized in the future will be the same in whole or in part as those presented herein.
Also included in this new release are forward-looking statements regarding TAG’s expectations regarding the Transaction. In making the forward-looking statements in this release, TAG has applied certain factors and assumptions that are based on information currently available to TAG as well as TAG’s current beliefs and assumptions made by TAG, including that TAG will be able to complete the transaction on the timelines expected, or at all.
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, and the information circular that TAG will file in connection with the meeting, 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.