VANCOUVER, Oct. 2 /CNW/ - International oil and gas production and exploration company TAG Oil Ltd. (TSX-V: TAO) announced today that the Company intends to launch a normal course issuer bid ("the bid") to purchase up to 1,364,582 of its common shares through the facilities of the TSX Venture Exchange.
The purchase of common shares under the bid will enable the Company to acquire its shares for cancellation.
TAG believes that the market price of the Company's common shares may not reflect their underlying value and that the purchase of common shares for cancellation will increase the proportionate interest of, and will be advantageous to, all remaining shareholders.
The shares that may be repurchased over a twelve-month period represent approximately 10% of the Company's 16,809,722 outstanding common shares in the public float. The Company has appointed First Canada Capital Partners Inc. as the Member that will be conducting the bid on behalf of the Company with purchases under the bid being able to commence on October 2, 2009. The amount and timing of such purchases will be determined by TAG and are limited to purchasing a maximum of 2% of the Company's outstanding common shares in any thirty day period.
TAG Oil Ltd. (http://www.tagoil.com/) is an international production and exploration company that, subject to final approvals, will own a 100% interest in the Cheal oil discovery located in the onshore Taranaki Basin of New Zealand. The Company is poised to grow through further development and exploration of the Cheal Mining License and other exploration acreage in close proximity to Cheal and on trend with other producing fields. Through its announced business combination with Trans-Orient Petroleum (TSX-V: TOZ), TAG will also be exploring a large lightly-explored area of the East Coast basin, also in New Zealand, which has a number of high-impact prospects identified for an upcoming drilling campaign, this includes a test into the fractured oil shale source rock formations that are widespread across the acreage.
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 Oil. Actual results may vary materially from the information provided in this release. As a result there is no representation by TAG Oil that the actual results realized in the future will be the same in whole or in part as those presented herein. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ from those contained in the forward-looking statements are set forth in, but are not limited to, filings that the Company and its independent evaluator have made, including the Company's most recent reports in Canada under National Instrument 51-102.
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, CEO, (604) 609-3350, Website: http://www.tagoil.com