TAG Oil will continue to have exposure to the potential upside from a 3.0% gross overriding royalty on future production
TAG Oil Ltd. (“TAG Oil” or the “Company”) (TSXV: TAO) (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.”
Source: Company Press Release