Tag Oil Ltd (TSE:TAO ) (OTCMKTS:TAOIF) shares nudged higher as it issued a corporate update, saying it was generating over 1,700 boe/d (barrels of oil equivalent per day) gross following its recent successful workover campaign.
The oiler has assets in New Zealand and Australia.
READ: Tag Oil says fiscal 3Q revenue up double-digits compared with previous quarter
In January this year, the firm said shareholders had approved the sale of its Taranaki basin assets and operations in New Zealand to Malaysia-based Tamarind Resources.
Today, TAG said it was currently waiting for final approval from New Zealand Petroleum and Minerals (NZP&M) for the sale and transfer of operatorship to Tamarind, and that the two firms remain committed to closing the transaction within two weeks of receiving that approval.
Also in today's statement, Tag said that Ocean Reach Advisory (Ocean Reach) had been appointed as its financial advisor tasked to secure a farm-in partner for the group's Australian assets. A virtual data room is scheduled to open on May 1 this year.
In Australia, TAG is looking to reduce its capital and risk exposure on the 1,150 sq km of 100%-owned acreage in the Surat Basin as it prepares for the next phase of the upcoming exploration program.
Ocean Reach's mandate also extends to the sale of the coal seam gas (CSG) rights associated with Tag's PL-17 block, which is near to several major CSG developments which feed the Queensland LNG market (liquefied natural gas).
Tag noted that after interpreting the near 70 sq km of 3D seismic acquired over PL-17 last year, extensive coal measures extending into the block have been identified.
The company aims to keep hold of the conventional oil and gas rights to PL-17.
Shares in Toronto added around 1.5% to $0.34.
Contact Giles at giles@proactiveinvestors.com
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