TAG Oil Announces Stock Private Placement
Calgary, Alberta - February 25, 2005 --/PRNewswire/-- TAG Oil Ltd. (OTCBB: TAGOF) announced today that the Company has reached agreements in principle with accredited North American and European investors to privately place up to 8,000,000 units at US$0.40 per unit, for proceeds of US$3.2 million. Each unit will consist of one common share and one warrant to purchase an additional common share at a price of US$0.60 for the first year and at US$0.80 for the second year.
At the Company's option, the warrants will be subject to an accelerated expiry in the event the Company's shares trade at or higher than US$1.00 in the first year and US$1.20 in the second year for 10 consecutive trading days. In that event the warrants will expire 30 days after notice is given to the holder. The TAG Oil common shares in the units and the shares issuable on exercise of the warrants will be subject to a four-month resale restricted period in the principal Canadian jurisdictions, and restricted in the US in accordance with Rule 144.
TAG Oil Ltd. is a Canadian oil and gas exploration company with operations in the Taranaki and Canterbury basins of New Zealand. As at February 25, 2005 the Company had 16,959,581 shares outstanding (18,292,076 fully diluted) prior to the completion of the above placement.
Forward oriented information disclosure:
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, including those that announce proposed financings that the Company expects to complete, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the failure of investors who are believed to have committed to the financings to complete them as a result of general market conditions, adverse developments unique to such investors, or otherwise. Accordingly, the actual amounts raised may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's annual Form 20F filing with the United States Securities Commission and its home jurisdiction filings, available at http://www.sedar.com/.