VANCOUVER, Dec. 6, 2012 /CNW/ - TAG Oil Ltd. (TSX: TAO) (OTCQX: TAOIF), reports that the Company intends to launch a normal course issuer bid
(bid) to purchase up to 5,586,926 of its common shares through the
facilities of TSX, subject to TSX acceptance.
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
There have been 67,300 common share purchased and cancelled under a
normal course issuer bid by TAG within the past twelve months at an
average weighted purchase price of $5.91 per common share.
Currently, TAG has 59,755,123 common shares issued and outstanding. The
common shares that may be repurchased over a twelve-month period
represent approximately 10% of TAG's 55,869,262 outstanding common
shares in the public float. TAG has appointed Macquarie Private Wealth
Inc. as the Participating Organization that will be conducting the bid
on behalf of TAG with purchases under the bid being able to commence on
December 10, 2012 and will terminate on December 9, 2013, or on such
earlier date as the bid is complete. The average daily trading volume
of the common shares for the previous six calendar months (ADTV) was
166,548 common shares. The amount and timing of such purchases will be
determined by TAG and, in accordance with TSX policies, on any trading
day, the amount of daily purchases may not exceed 25% of the ADTV or
41,637 common shares.
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 objectives,
goals, or future plans relating to the bid 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 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