TAG Oil Ltd. (TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its annual and fourth quarter results for the fiscal year ending March 31, 2020 and to provide the following corporate update:
On September 25, 2019, TAG completed the sale of substantially all of its Taranaki Basin assets and operations in New Zealand and at March 31, 2020, the Company had $41.5 million (March 31, 2019: $1.9 million) in cash and cash equivalents and $41.3 million (March 31, 2019: $0.06 million) in working capital.
On April 14, 2020, a return of capital in the amount of $0.30 per common share (~$25.6 million in cash) was paid to all shareholders of record of the common shares of the Company on March 27, 2020. Following the return of capital, the Company’s current cash balance stands at ~C$14.5 million.
TAG has received a total of C$0.58 million in royalty payments from Tamarind Resources Pte. Ltd. (“Tamarind”). Future royalty payments will continue to be paid on a quarterly basis.
TAG has received a total of US$0.55 million in event specific milestone payments from Tamarind and expects to receive the balance of the US$1 million milestone payment from the recent achievement of 650 mboe of cumulative production from Cheal after October 1, 2018 over the next 12 months. This leaves up to US$3.5 million in future event specific payments payable on Tamarind achieving certain milestones.
TAG’s management and Board of Directors are continuing to assess all available opportunities to maximize value for its shareholders, including exploring strategic partnerships and opportunities for its three 100% controlled blocks (PL17, ATP 2037 and ATP 2038) covering over 275,000 acres in the Surat Basin of Australia.
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian based international oil and gas explorer with exploration and production assets in Australia and royalty interests in New Zealand.
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 expected date of the filing of the Company’s Annual Financial Statements and MD&A, and receiving royalty and milestone payments . 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.
TAG has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to “boes” that may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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