TAG Oil Expands Canterbury Holdings

TAG Oil has inked a deal with New Zealand-based Green Gate Limited, under which TAG can earn up to a 70% Working Interest in the 600,000-acre onshore portion of Petroleum Exploration Permit 38260, located in the Canterbury Basin, New Zealand.

Under the terms of the agreement TAG will earn a 30% Working Interest and assume operatorship onshore in PEP 38260 by acquiring a 2-D seismic program at a cost of US$400,000 over the Kate Anticline Prospect identified within the Permit. TAG has the option to earn an additional 40% (total 70%) Working Interest by drilling one exploration well based on the seismic data acquired over the 15 sq. km Kate Anticline.