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VANCOUVER, April 20 /CNW/ - TAG Oil Ltd. (TSX-V: TAO) (the "Company") is pleased to announce that it has filed a preliminary prospectus in connection with an overnight-marketed public offering (the "Offering") of units (the "Units") in all the provinces of Canada, other than Quebec. Each Unit shall be comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will be exercisable at a premium to the Unit price and will entitle the holder thereof to acquire one Common Share. Though the Offering will be priced in the context of the market, with final terms of the Offering to be determined at the time of pricing and entering into an underwriting agreement, the Company expects to issue Units in the aggregate amount of approximately C$17 to C$20 million. The Offering will be conducted through a syndicate of underwriters, led by GMP Securities L.P. (the "Underwriters").
The Company will also grant the Underwriters an over-allotment option to purchase additional Units and/or Warrants in an amount up to 15% of the number of Units sold pursuant to the Offering, exercisable in whole or in part at any time up to 30 days from the closing of the Offering.
The Company intends to use the net proceeds of the Offering to fund its exploration and development programs in the onshore portion of the Taranaki Basin and the East Coast Basin of New Zealand, for working capital and general corporate purposes.
The Offering is expected to close on or about May 7, 2010 and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange, and the entering into by the Company and the Underwriters of an underwriting agreement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the 1933 Act, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such terms are defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements.
Cautionary Note Regarding Forward-Looking Statements
Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated closing date of the Offering and the anticipated use of proceeds. We believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Closing could be delayed if TAG cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied. The forward-looking statements included in this press release are made as of the date of this press release and TAG disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.
TAG Oil Ltd.
TAG Oil Ltd. is a Canadian-based company with operations in New Zealand. The Company holds an extensive drill-ready prospect inventory in the Taranaki Basin, including a 100% interest in the Cheal oil and gas discovery now under appraisal and development. TAG is positioned to build near-term production through optimization of the existing producing wells, and through further development and exploration of the Cheal Mining License and exploration acreage in close proximity to it in the Taranaki discovery fairway.
In the East Coast Basin, the Company intends to exploit the potential undiscovered resources that have been demonstrated in the Waipawa Black Shale and Whangai Shale source-rock formations, using technologies that are commonplace in North America but not yet employed in New Zealand. In addition, TAG is appraising a shallow historical light oil discovery, as well as testing high-impact conventional prospects across a 2.4 million-acre holding.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE TAG Oil Ltd.
For further information: For further information: Garth Johnson or Dan Brown, TAG Oil Ltd., (604) 682-6496, Website: http://www.tagoil.com