VANCOUVER, BC, Aug. 28, 2020 /CNW/ - TAG Oil Ltd. (TSXV: TAO) and (OTCQX: TAOIF) is pleased to report the filing of its first quarter results for the interim period ending June 30, 2020. Highlights over the period include:
- As at June 30, 2020, the Company had $15.0 million (March 31, 2020: $41.5 million) in cash and cash equivalents and $17.4 million (March 31, 2020: $43.7 million) in working capital.
- On April 14, 2020, a return of capital in the amount of $0.30 per common share (~$25.6 million in cash) was paid to all shareholders of record of the common shares of the Company on March 27, 2020.
- TAG has received a total of C$0.58 million in royalty payments from Tamarind Resources Pte. Ltd. ("Tamarind") following receipt of C$132,000 for the quarterly payment period ended June 30, 2020. Future royalty payments will continue to be paid on a quarterly basis.
- TAG has received a total of US$0.55 million in event specific milestone payments from Tamarind and expects to receive the balance of the US$1 million milestone payment payable from the recent achievement of 650 mboe of cumulative production from Cheal in installment payments over the next 12 months, with the next payment of US$50,000 due on August 31, 2020. A further US$3.5 million in future event specific payments remains payable on Tamarind achieving certain milestones.
TAG's management and Board of Directors continue to assess all available opportunities to maximize value for its shareholders, including exploring strategic partnerships and opportunities for its three 100% controlled blocks (PL17, ATP 2037 and ATP 2038) covering over 275,000 acres in the Surat Basin of Australia. TAG will provide further information on these efforts in due course.
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.
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.
TAG has adopted the standard of six thousand cubic feet of gas to equal one barrel of oil when converting natural gas to "boes" that may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
SOURCE TAG Oil Ltd.
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