Proactive Investors - Run By Investors For Investors

TAG Oil shareholders approve sale of Taranaki basin assets in New Zealand

The company will receive a cash payment of US$30 million and other consideration from Malaysia-based Tamarind Resources
Oil barrels and a crain
The oil well transaction will be financed from Tamarind's available financial resources and is subject to regulatory approval

TAG Oil Ltd (TSE:TAO ) (OTCMKTS:TAOIF) said its shareholders approved the sale of its Taranaki basin assets and operations in New Zealand to Malaysia-based Tamarind Resources Pte Ltd.

The Vancouver-based company said in a press release Thursday that under the deal, TAG will receive a cash payment of US$30-million at closing. In addition, TAG will draw a 2.5% gross overriding royalty on future production from wells and as much as US$5 million payable when various milestones are reached.

READ: TAG Oil agrees to sale of New Zealand assets to Tamarind Resources

One well has triggered a payment of US$500,000 at closing, according to TAG Oil.

The transaction will be financed from Tamarind's available financial resources and is subject to regulatory approval. The deal is expected to close March 31.

TAG added that 97% of the shares voted were in favor of the deal.

Shares of TAG climbed C$0.02 to C$0.35 on Thursday.

In November, shares got a boost when TAG reported quarterly results including a net daily output increase of 14%.



Contact Dennis Fitzgerald at [email protected]

View full TAO profile View Profile

Tag Oil Timeline

Newswire
October 18 2018
Conf. video
September 07 2018

Related Articles

oil and gas operations
January 10 2019
The North Sea firm is working to bring the Liberator into development, and, with active operational plans and funding efforts appearing close to a conclusion it is set for a significant 2019.
1532456979_Prairie_Provident_Resources_-_Rig_in_Wheat.png
July 24 2018
The company is focused in the Wheatland and Princess in Southern Alberta, where it is targeting the Lower Mannville formation
Oil barrels
January 11 2019
Over the last month of 2018, the firm has reported "highly encouraging" results from one of its legacy wells and clinched an agreement to pioneer the use of downhole perforation technology in Georgia
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use