TAG Oil Ltd. (TSXV: TAO and OTCQX: TAOIF) announces that it has closed its previously announced sale 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 Energy Pty. Ltd., a company owned by Ilwella Pty. Ltd. and AJ Lucas Services (the “Transaction”).
Following closing of the Transaction, TAG Oil has ~C$17 million in cash and will continue to have exposure to the potential upside from a 3.0% gross overriding royalty on future production from all liquids produced from the Permits.
Toby Pierce, CEO of TAG Oil said, “We are pleased to close this transaction with Luco Energy and to deliver value to our shareholders. TAG Oil is well positioned strategically to pursue oil and gas exploration and development opportunities in the initial focus area of the Middle East and North Africa and we will keep our shareholders apprised of any developments as they arise.”
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company.
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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.
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.