Following closing of the Transaction, TAG has ~US$30 million in cash and will continue to have exposure to the potential upside from all New Zealand assets sold
TAG Oil is pleased to announce that it has closed its previously announced sale of substantially all of its New Zealand assets to Tamarind Resources.
Following closing of the Transaction, TAG has ~US$30 million in cash and will continue to have exposure to the potential upside from all New Zealand assets sold as follows:
2.5% gross overriding royalty on production from PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki), PMP 60291 (Cheal East) and PEP 54877 (Cheal East).
Up to US$5 million in event specific payments payable on achieving various milestones (first milestone, grant of PMP 60454 (Supplejack) conversion, has already been achieved triggering payment of US$500,000 at closing).
Toby Pierce, CEO of TAG commented, “We are very pleased to announce the closing of this transaction with Tamarind and would like to thank our team for their dedication throughout this process and to our shareholders for their patience. TAG will continue to assess its exploration prospects covering over 275,000 net acres in Australia, including the producing 25,000-acre petroleum mining license in the Surat Basin, along with other opportunities that are in the best interests of our shareholders.”
Source: Company Press Release