VANCOUVER, Dec. 8, 2015 /CNW/ - TAG Oil Ltd. (TSX: TAO) and (OTCQX: TAOIF), reports that subject to the acceptance of the Toronto Stock Exchange (the "TSX") the Company intends to purchase and cancel up to 5,151,961 of its common shares, which is 10% of the public float as at December 2, 2015. TAG has appointed Dundee Goodman Private Wealth to conduct the purchases through the facilities of the TSX.
While TAG Oil plans to spend the bulk of its capital on its current asset base, the Company would also like to maintain the flexibility to repurchase shares in the event its share price does not reflect the underlying value of the Company.
Under TSX policies, these purchases can commence on December 10, 2015, and will terminate on December 9, 2016. The average daily trading volume of the common shares for the previous six calendar months (the "ADTV") was 40,075 common shares, so the maximum amount of daily purchases may not exceed 25% of the ADTV or 10,018 common shares. In addition, TAG Oil will be allowed to make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of common shares not directly or indirectly owned by insiders of TAG Oil that exceeds the daily repurchase restriction, in accordance with TSX policies.
Over the past twelve months TAG has purchased and cancelled 260,600 of its common shares at an average weighted purchase price of CDN$1.18 per common share leaving TAG with 62,212,252 common shares issued and outstanding as at December 2, 2015.
About TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a development-stage oil and gas company with extensive operations, including production infrastructure in the Taranaki Basin region of New Zealand. As one of New Zealand's leading operators, TAG is positioned for long-term reserve-based growth with attractive exploration activities in the lightly explored Taranaki-region discovery fairway. As a low cost, high netback oil and gas producer, TAG is debt-free and reinvests its cash flow into development and step-out drilling along trend with the Company's existing production.
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 Company's objectives, goals, or future plans relating to the share buyback 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: Ashley Garnot, General Manager, Phone: 1-604-682-6496, Email: [email protected], Website: http://www.tagoil.com/, Blog: www.tagoil.com/media-center/tag-oil-blog/