TAG Oil Ltd. (TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its second quarter results for the interim period ending September 30, 2020. Highlights over the period include:
- At September 30, 2020, the Company had C$15.1 million (June 30, 2020: C$15.0 million) in cash and cash equivalents and C$17.6 million (June 30, 2020: C$17.4 million) in working capital. The Company has no debt.
- Capital expenditures totaled C$0.05 million for the quarter ended September 30, 2020, compared to C$0.10 million for the quarter ended June 30, 2020. Most of the expenditures during the quarter related to the ATP 2037/2038 seismic acquisition program for 2021.
- On September 1, 2020, the Company announced the following corporate updates:
- Abdel (Abby) Badwi joined the Company as Executive Chairman of the board of directors, along with Mr. Suneel Gupta who was appointed as VP and COO of the Company. Messrs. Shawn Reynolds and Thomas Hickey were also appointed to TAG’s board of directors as non-executive directors.
- The Company completed a non-brokered private placement of 6.25 million units (“Units”) at a price of C$0.16 per Unit for aggregate gross proceeds of C$1.0 million. Each Unit consists of one common share (“Common Share”) and one common share purchase warrant (“Warrant”), with each Warrant entitling the holder thereof to acquire one Common Share in the capital of the Company at a price of C$0.16 per Common Share for a period of three years from the date of closing.
- The grant of 4.85 million stock options exercisable for a period of five years at a price of C$0.25 per share to the newly appointed officers, directors, and consultant. The options will be subject to deferred vesting over three years.
- On September 25, 2020, the Company announced the following corporate updates:
- Peter Loretto resigned from his position as a non-executive director of the Company.
- The grant of 775,000 stock options on September 11, 2020, to various officers, directors, and staff members. These options vested immediately and are exercisable until September 11, 2025, at a price of C$0.25 per share.
- Subsequent to September 30, 2020, the Company closed the purchase and sale agreement with Luco Energy Pty. Ltd. (“Luco”), a company owned by Ilwella Pty. Ltd. and AJ Lucas Services, to divest its Australian assets and operations as part of a strategic realignment of the Company’s oil and gas exploration and development activities. This was an arm’s length transaction that involved the sale of the shares of TAG Oil’s 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 in exchange for a cash payment of A$2,500,000 (approximately C$2,375,000) at closing and a 3.0% gross overriding royalty on future production from all liquids produced from the Permits.
TAG Oil’s management and board of directors continue to assess all available opportunities to maximize value for its shareholders, including exploring strategic opportunities in the Middle East and North Africa. TAG Oil will provide further information on these efforts in due course.
About TAG Oil Ltd.
TAG Oil 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 and potential strategic opportunities. 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.