Tag Oil together with sure of its subsidiaries in New Zealand, has entered right into a definitive share and asset buy settlement with Australian-based Tamarind Resources and sure of its subsidiaries.
This arm’s size transaction is for the sale of considerably all of TAG’s Taranaki Basin property and operations in New Zealand. The sale will embrace TAG’s 100% working pursuits in: PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki) and TAG’s 70% curiosity in PMP 60291 (Cheal East) and PEP 54877 (Cheal East) (collectively, the “NZ Assets”). Formal closing of the Transaction is predicted in calendar Q1 2019, relying on timing of regulatory approvals.
• Cash fee to TAG of US$30 million at closing.
• TAG to obtain a 2.5% gross overriding royalty on future manufacturing from all NZ Assets.
• Up to US$5 million in occasion particular funds payable on attaining varied milestones (first milestone, grant of PMP 60454 (Supplejack) conversion, has already been achieved triggering fee of US$500,000 at closing).
• The Transaction will likely be funded from Tamarind’s out there monetary sources.
Commenting on the Transaction, Toby Pierce, CEO of TAG stated, “We are very happy to announce this transaction for TAG’s New Zealand property, which presents a pretty premium to the present market worth of the property for TAG shareholders. Further, the royalty and occasion particular funds present continued publicity to future upside from the property and Tamarind’s aggressive capital program.”
Following completion of the Transaction, TAG expects to have over C$zero.50 per share in money and dealing capital, continued publicity to the present operations and upside of the NZ Assets. Additionally, TAG will likely be in a greater place to pursue its exploration prospects masking over 275,000 web acres in Australia, together with the manufacturing 25,000-acre petroleum mining license within the Surat Basin.
TAG Oil based mostly in Vancouver, is a world oil and gasoline explorer with established excessive netback manufacturing, improvement and exploration property, together with manufacturing infrastructure in New Zealand and Australia. (Source: Tag Oil – Image: Horizon Energy Services/Tag oil website within the Teranaki Basin, New Zealand)
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