TAG Oil Closes $53.56 Million Bought Deal Financing



TAG Oil Ltd. has closed its previously announced bought deal common share public offering (the "Offering"). The Company sold, through a syndicate co-led by GMP Securities L.P. and Wellington West Capital Markets Inc. (collectively, the "Underwriters") a total of 10,300,000 common shares at a price of $5.20 per share for aggregate gross proceeds of $53,560,000.

The Company has also granted to the Underwriters an over-allotment option, exercisable in whole or in part at any time on or up to 30 days after the closing of the offering, to purchase up to an additional 1,250,000 common shares at the same price for additional gross proceeds of up to $6,500,000. In the event that the over-allotment option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $60,060,000.

The Company plans to use the net proceeds from the Offering to increase production from the 100% owned Cheal Oil Field, to accelerate the exploration programme of conventional and unconventional resources in the Taranaki and East Coast Basins, New Zealand and for general corporate purposes