VANCOUVER, Oct. 31, 2012 /CNW/ - TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF) is responding to a press release issued by a third party regarding a
reported offer by TAG Oil to acquire all of Greymouth Petroleum
("Greymouth"). TAG Oil as part of its ordinary course of business
identifies and, when deemed to be accretive, pursues new business
opportunities. TAG however did not submit an offer to acquire Greymouth
Petroleum as incorrectly reported. TAG did submit a non-binding
indicative expression of interest ("EOI") stating an interest to
potentially acquire the assets of Greymouth or all of, or a majority
of, Greymouth shares.
In addition the EOI was subject to many conditions such as satisfactory
due diligence, board approval, funding consisting of debt and equity on
terms acceptable to TAG and the negotiation of a definitive agreement
should TAG want to proceed. No formal due diligence has been conducted
and no definitive agreement has been entered into or is being
All parties that had access to the non-binding expression of interest
are subject to confidentiality restrictions.
TAG Oil CEO, Garth Johnson commented, "The non-binding expression of
interest TAG submitted in relation to Greymouth was not an offer, it
was TAG expressing an interest in looking at an opportunity, subject to
strict confidentiality that appears to have been breached. As part of
TAG's normal course of operations our team continually identifies and
reviews potential opportunities that are deemed to be accretive to
TAG's valuation and routinely conducts rigorous due diligence on
potential opportunities and Greymouth was one that was identified to be
The Company's policy is not to comment on rumours or speculation and,
accordingly, TAG Oil does not intend to comment further at this time.
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 oil and gas production infrastructure, TAG is
enjoying substantial oil and gas production and reserve growth through
development of several light oil and gas discoveries. TAG is also
actively drilling high-impact exploration prospects identified across
more than 2,953,810 net acres of land in New Zealand.
In the East Coast Basin, TAG has entered into a farm-out agreement with
Apache Corporation to explore and potentially develop the major
unconventional resource potential believed to exist in the tight oil
source-rock formations that are widespread over the Company's acreage.
These oil-rich and naturally fractured formations have many
similarities to North America's Bakken source-rock formation in the
successful Williston Basin.
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, 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 Company's non-binding
indicative expression of interest, acquisitions or potential
acquisition, debt and equity financing, and plans to pursue new
opportunities are forward-looking statements under applicable
securities laws and necessarily involve risks and uncertainties. Actual
results may vary 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
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