TAG Oil Closes Private Placement
TAG Oil Ltd., (OTC Bulletin Board: TAGOF), has closed a private placement to a group of North America and European accredited investors.
The Company issued 9,066,500 units (US$0.40 per unit) for net proceeds of US$3.63 million. There were no finder or broker fees paid in connection with this placement. The Units consist of one common share and one non-transferable warrant exercisable into one common share. Each warrant is exercisable at US$0.60 and US$0.80 respectively over a two-year term, subject to accelerated expiry of the warrants 30 days from the date notice is given, at the Company's election, should the Company's shares trade above US$1.00 in the first year and US$1.20 in the second year. With the closing of this funding, the Company has 26,026,081 shares outstanding (36,425,076 fully diluted).
Alan Hart, TAG Oil's Chairman commented, "We are delighted that the investment community oversubscribed to this placement in order to participate in TAG's growth. The proceeds of this funding will primarily be allocated towards our program in Taranaki, focused on identifying shallow drilling prospects within TAG's 100% controlled acreage."
TAG also reports that its wholly owned subsidiary TAG Oil (NZ) Limited has entered into an agreement whereby Bridge Petroleum Limited will assign a 16.67% of Bridge Petroleum's 33% interest in Petroleum Exploration Permit 38745. This 12,500-acre Permit is in immediate proximity to PEP 38741 where TAG already holds a 20% interest, and is in the heart of the Taranaki production fairway. This new Permit will replace a portion of the Hursthouse AMI, which TAG entered into with partners Bridge Petroleum, Tap Oil and Westech Energy late in 2004.
- TAG Oil Gets Approval to Take 70% Operating Stake in NZ's PEP51153 (Jun 06)
- NZ-Focused TAG Oil Cuts Capex for Rest of FY16 Due to Low Oil Prices (Oct 15)
- TAG Prepares for NZ's Cheal East Field Development with New Pipeline Link (May 27)