VANCOUVER, BC, July 16, 2020 /CNW/ - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) is pleased to provide the following corporate update:
- Further to TAG's release dated June 29, 2020, the Company expects that its annual filings for the fiscal year ending March 31, 2020 will be filed on or around August 13, 2020.
- TAG's current cash balance stands at ~C$15 million, with working capital at ~C$14.8 million.
- TAG has received a total of C$0.45 million in royalty payments from Tamarind Resources Pte. Ltd. ("Tamarind"), which will increase by C$132,000 upon receipt of the next completed quarterly payment for the period ended June 30, 2020. Future royalty payments will continue to be paid on a quarterly basis.
- TAG has received a total of US$0.5 million in event specific milestone payments from Tamarind and expects to receive a US$1 million milestone payment from the recent achievement of 650 mboe of cumulative production from Cheal after October 1, 2018. Up to US$3.5 million in future event specific payments will remain payable on Tamarind achieving certain milestones.
- TAG's operations over its three 100% controlled blocks (PL17, ATP 2037 and ATP 2038) covering over 275,000 acres in the Surat Basin of Australia are ongoing. Production at PL17 has been temporarily shut-in due to COVID-19 precautionary measures, but production is expected to be fully back online in the near term. TAG is also continuing to explore strategic partnerships and opportunities for the Australian assets and discussions with interested parties are ongoing.
- As TAG's management continues to assess all available opportunities to maximize value for its shareholders, TAG's Board of Directors will be voluntarily reducing their annual fees by 50% along with TAG's CEO, Toby Pierce, also voluntarily reducing his annual salary by 25% as of August 1, 2020.
Toby Pierce, TAG Oil's CEO commented, "We are pleased that our team has successfully navigated through the challenges posed by COVID-19 thus far from a health and safety perspective. However, as the world adapts to working remotely and quarantines, COVID-19 has created some corporate and commercial difficulties, including the delay of our year-end audit and associated filings. We continue to focus on maximizing shareholder value and, with over $0.17 a share of working capital, we are pursuing several options to benefit all shareholders."
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian based international oil and gas explorer with exploration and production assets in Australia and royalty interests in New Zealand.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Certain of the statements made and information contained herein is considered "forward-looking information" within the meaning of applicable Canadian securities laws, including statements with regard to the expected date of the filing of the Company's Annual Financial Statements and MD&A, and receiving royalty and milestone payments. These statements address future events and conditions and are reliant on assumptions made by the Company's management, and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators. As a result of these risks and uncertainties, and the assumptions underlying the forward-looking information, actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
SOURCE TAG Oil Ltd.
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