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TAG Announces Sale of New Zealand Assets and Operations
TAG Announces Sale of New Zealand Assets and Operations Canada NewsWire VANCOUVE...
About this update from Tag Oil Ltd
[{"type":"text","content":"\n\n\n\nTAG Announces Sale of New Zealand Assets and Operations\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, Nov. 6, 2018\n\n\n\nVANCOUVER, Nov. 6, 2018 /CNW/ - TAG Oil Ltd. (\"TAG\", TSX: TAO and OTCQX: TAOIF) announced today that it, along with certain of its subsidiaries in New Zealand, has entered into a definitive share and asset purchase agreement with Australian-based Tamarind Resources Pte. Ltd. (\"Tamarind\"), and certain of its subsidiaries (the \"SPA\"). \nThis arm's length transaction is for the sale of substantially all of TAG's Taranaki Basin assets and operations in New Zealand (the \"Transaction\"). The sale will include TAG's 100% working interests in: PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki) and TAG's 70% interest in PMP 60291 (Cheal East) and PEP 54877 (Cheal East) (collectively, the \"NZ Assets\"). Formal closing of the Transaction is expected in calendar Q1 2019, depending on timing of regulatory approvals.\nTransaction Highlights\nCash payment to TAG of US$30 million at closing. TAG to receive a 2.5% gross overriding royalty on future production from all NZ Assets. 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). The Transaction will be funded from Tamarind's available financial resources.Commenting on the Transaction, Toby Pierce, CEO of TAG said, \"We are very pleased to announce this transaction for TAG's New Zealand assets, which presents an attractive premium to the current market value of the assets for TAG shareholders. Further, the royalty and event specific payments provide continued exposure to future upside from the assets and Tamarind's aggressive capital program.\" \nFollowing completion of the Transaction, TAG expects to have over C$0.50 per share in cash and working capital, continued exposure to the current operations and upside of the NZ Assets. Additional...