Business
TAG Oil Announces Definitive Agreement to Acquire Assets Located in Australia's Surat Basin
TAG Oil Announces Definitive Agreement to Acquire Assets Located in Australia's Surat Basi...
About this update from Tag Oil Ltd
[{"type":"text","content":"\n\n\n\nTAG Oil Announces Definitive Agreement to Acquire Assets Located in Australia's Surat Basin\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\nTAG Oil Announces Definitive Agreement to Acquire Assets Located in Australia's Surat Basin\nCanada NewsWire\nVANCOUVER, Oct. 31, 2016\n\n\n\nVANCOUVER, Oct. 31, 2016 /CNW/ - Oil and gas exploration and production company, TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF, \"TAG\"), is pleased to announce that its wholly owned Australian subsidiary, Cypress Petroleum Pty Ltd. (\"Cypress\"), has entered into a definitive asset purchase agreement (the \"Definitive Agreement\") with Southern Cross Petroleum & Exploration Pty Ltd. (\"Southern Cross\"), to acquire a 100% interest, subject to underlying royalties, in Petroleum Lease 17 (\"PL 17\") and all related assets, which are located in Australia's Surat Basin. The Definitive Agreement is subject to certain conditions, including obtaining all necessary government approvals.\n\nTransaction Highlights\n\nTAG will acquire a 100% right, title and interest in PL17 and all related assets for consideration of AUD$2,500,000, payable to Southern Cross as follows:\n\n\nAUD$750,000 (less the AUD$40,000 non-refundable deposit already paid) payable in cash on the closing date; \nAUD$500,000 payable in cash on July 20, 2017; \nAUD$500,000 payable, at the sole discretion of Cypress, in cash or satisfied by shares of TAG, on the second anniversary of the closing date; and \nAUD$750,000 payable, at the sole discretion of Cypress, in cash or satisfied by shares of TAG, on the third anniversary of the closing date.\nPL 17 Highlights\n\nPL 17 covers 104 km2 (25,700 acres) in the Surat Basin, which is one of Australia's oldest producing basins, and is approximately 20 km away from the Moonie Oil Field that has produced ~25 mmb to date. Two fields, Bennett and Leichhardt, are located within the permit and have produced intermittingly from the Permian formation since being discovered in the 1960's, with current production from the Bennett field of approximately 15 b/d of light oil. The Permian oil play is...