TSXV: TAO
OTCQX: TAOIF
VANCOUVER, BC, Oct. 14, 2020 /CNW/ - TAG Oil Ltd. ("TAG
Oil" or the "Company") (TSXV: TAO) (OTCQX: TAOIF) announced today
that it has entered into a definitive purchase and sale agreement
dated October 14, 2020, with
Australian-based Luco Energy Pty. Ltd. ("Luco"), a company owned by
Ilwella Pty. Ltd. and AJ Lucas Services, to divest its Australian
assets and operations as part of a strategic realignment of the
Company's oil and gas exploration and development activities.
This is an arm's length transaction that involves the sale by
TAG Oil of the shares of its Australian subsidiary, Cypress
Petroleum Pty Ltd., which holds the Company's 100% working
interests in PL 17, ATP 2037, and ATP 2038 (collectively, the
"Permits") located in the Surat Basin of Queensland, Australia to Luco (the
"Transaction"). Formal closing of the Transaction is expected in
calendar Q4 2020, subject to satisfaction of certain customary
conditions precedent, including approval of the TSX Venture
Exchange.
Transaction Highlights
- Cash payment to TAG Oil of A$2,500,000 at closing.
- TAG Oil to receive a 3.0% gross overriding royalty on future
production from all liquids produced from the Permits.
- The Transaction will be funded from Luco's available financial
resources.
Abby Badwi, Executive Chairman of
TAG Oil said, "The sale of TAG Oil's Australian assets and
operations to the Ilwella group enables the Company to strengthen
its balance sheet while still maintaining exposure to potential
future upside from the prospective permits through the royalty. The
Company is continuing to assess various oil and gas
acquisition opportunities of assets and/or companies
in the initial focus area of the Middle
East and North Africa that
will provide value to shareholders."
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based
international oil and gas exploration company.
Neither the TSX-V nor its Regulation Services Provider (as
that term is defined in the policies of the TSX-V) accepts
responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
Certain of the statements made and information contained
herein is considered "forward-looking information" within the
meaning of applicable Canadian securities laws, including
statements with regard to the Company's operations, potential
acquisition opportunities and the Transaction. These statements
address future events and conditions and are reliant on assumptions
made by the Company's management, and so involve inherent risks and
uncertainties, as disclosed in the Company's periodic filings with
Canadian securities regulators. As a result of these risks and
uncertainties, and the assumptions underlying the forward-looking
information, actual results could differ from those currently
projected. The Company does not assume the obligation to update any
forward-looking statement, except as required by applicable
law.
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content:http://www.prnewswire.com/news-releases/tag-oil-announces-sale-of-australian-assets-and-operations-301152399.html
SOURCE TAG Oil Ltd.