/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
VANCOUVER, Nov. 13, 2013 /CNW/ - TAG Oil Ltd. (the "Company" or "TAG") (TSX: TAO) (OTCQX: TAOIF) is pleased to announce that it has closed the previously announced
bought deal offering of common shares of the Company ("Common Shares") for aggregate gross proceeds of $25,080,000 (the "Financing"). Pursuant to an underwriting agreement dated effective as of October
23, 2013 (the "Underwriting Agreement"), the Company, through a syndicate of underwriters co-led by Dundee
Securities Ltd. and Casimir Capital Ltd., and including Credit Suisse
Securities (Canada) Inc., Cormark Securities Inc., Mackie Research
Capital Corporation and M Partners Inc. (collectively, the "Underwriters"), issued 5,700,000 Common Shares, at a price of $4.40 per Common Share
(the "Offering Price"), for aggregate gross proceeds of $25,080,000. Pursuant to the terms
of the Underwriting Agreement, the Company has granted the Underwriters
an option to purchase up to an additional 855,000 Common Shares, at the
Offering Price, until December 13, 2013.
The Company anticipates that the net proceeds of the Financing will
primarily be used to:
carry out and accelerate Taranaki Basin drilling, completion and
commercialization projects, including TAG's deep Kapuni projects;
build TAG's East Coast basin unconventional project team;
build a longer-term, clearly defined and executable exploration and
development program in the East Coast and Canterbury Basins in New
increase TAG's land position in the East Coast and Taranaki Basins; and
for general corporate purposes.
This press release is not an offer or a solicitation of an offer of
securities for sale in the United States. The Common Shares have not
and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from registration.
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations
focused exclusively in New Zealand. With 100% ownership over all its
core assets, including extensive oil and gas production infrastructure,
TAG is enjoying significant organic value creation through exploration
success and ongoing development and appraisal drilling of several light
oil and gas discoveries. As New Zealand's leading explorer, TAG
actively drills high-impact conventional and unconventional exploration
prospects identified in the Taranaki Basin, East Coast Basin and
Canterbury Basin that covers more than 2,669,780 net acres of land,
prospective for major discovery in New Zealand.
Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts
are forward-looking statements that involve various risks and
uncertainty affecting the business of TAG. Such statements can
generally, but not always, be identified by words such as "expects",
"plans", "anticipates", "intends", "estimates", "forecasts",
"schedules", "prepares", "potential" and similar expressions, or that
events or conditions "will", "would", "may", "could" or "should" occur.
All estimates and statements that describe the Financing, use of
proceeds, plans to carry out and accelerate Taranaki Basin drilling,
completion and commercialization projects, building an exploration and
development program in the East Coast and Canterbury Basins and
increasing TAG's land position are forward-looking statements under
applicable securities laws and necessarily involve risks and
uncertainties. Estimates and statements underlying the Company's
objectives, goals, production rates, optimization, infrastructure
capacity and/or future plans with respect to drilling involve risks and
uncertainties including, without limitation: risks associated with oil
and gas exploration, development, exploitation and production,
geological risks, marketing and transportation, the risk associated
with estimating undiscovered original initially in-place described
above, availability of adequate funding, volatility of commodity
prices, imprecision of reserve estimates, environmental risks,
competition from other producers and changes in the regulatory and
taxation environment. Forward-looking statements relating to TAG's
exploration and development of its oil and gas properties including
with respect to completion of its drilling programs involve risks and
uncertainties including, without limitation: risks associated with
establishment of additional production of oil and gas in accordance
with TAG's expectations at its oil and gas properties, well
performance, drilling results, successful completion of new
infrastructure at its oil and gas properties, successful optimization,
the increase of cash flow from new production, achievement of expected
growth, successful results of operations, performance results,
prospects and evaluation results.
While TAG considers these factors and assumptions to be reasonable based
on information currently available, they may prove to be incorrect.
Actual results may differ materially from the information provided in
this release, and there is no representation by TAG that the actual
results realized in the future will be the same in whole or in part as
those presented herein.
Other factors that could cause actual results to differ from those
contained in the forward-looking statements are also set forth in
filings that TAG and its independent evaluator have made, including
TAG's most recently filed reports in Canada under National Instrument
51-101, which can be found under TAG's SEDAR profile at www.sedar.com.
TAG undertakes no obligation, except as otherwise required by law, to
update these forward-looking statements in the event that management's
beliefs, estimates or opinions, or other factors change.
SOURCE: TAG Oil Ltd.
For further information:
Dan Brown or Garth Johnson
TAG Oil Ltd., 1-604-682-6496