TAG Oil Announces $10 Million Overnight Marketed Public Offering of Units to Strategically Advance Unconventional and Conventional Opportunities in Egypt

TAG Oil Ltd
TAG Oil Ltd

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NOT FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, Oct. 21, 2024 (GLOBE NEWSWIRE) -- TAG Oil Ltd. (TSXV:TAO, OTCQX:TAOIF, and FSE:TOP) (“TAG Oil” or the “Company”) is pleased to announce that it has filed a preliminary short form prospectus (“Preliminary Prospectus”) with the securities commissions in all provinces of Canada, except Québec, in connection with an overnight marketed public offering (the “Offering”) of units of the Company (the “Units”) at a price of $0.21 per Unit for aggregate gross proceeds of C$10,000,000.

Certain members of management and directors of the Company intend to participate alongside investors in the Offering.

The Offering is being led by Research Capital Corporation, as lead underwriter and sole-bookrunner, on behalf of a syndicate of underwriters (collectively, the “Underwriters”).

Each Unit will consist of one common share of the Company (“Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price equal to $0.30 per Warrant Share at any time up to 24 months following the closing of the Offering.

The Company intends to use the net proceeds of the Offering to advance appraisal and development activities in the Western Desert, Egypt, at both the Badr Oil Field and strategic new 512,000-acre concession and for working capital and general corporate purposes. Activities to be advanced with the proceeds include executing re-entry work on multiple existing wells to recomplete and/or drill a sidetrack into existing conventional oil reservoirs, the drilling of new vertical delineation wells in the unconventional Abu Roash “F” (ARF) resource play targeting high intensity natural fractured areas, and the planning of the next horizontal well with multi-stage frac.

In addition, the Company plans to also complete a third-party resource report on the new strategic 512,000-acre concession that is in the process of being acquired and conduct a potential strategic joint venture partnership process.

The Company has granted the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time, from time to time, for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Units sold under the Offering, and/or the components thereof, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes.