TAG Oil announces sale of Australian assets and operationsChristian Fernsby ▼ | October 15, 2020
TAG Oil Ltd. announced that it has entered into a definitive purchase and sale agreement dated October 14, 2020, with Australian-based Luco Energy Pty. Ltd., a company owned by Ilwella Pty. Ltd. and AJ Lucas Services, to divest its Australian assets and operations as part of a strategic realignment of the Company's oil and gas exploration and development activities.
Australian TAG Oil
Topics: TAG Oil
Formal closing of the Transaction is expected in calendar Q4 2020, subject to satisfaction of certain customary conditions precedent, including approval of the TSX Venture Exchange.
- Cash payment to TAG Oil of A$2,500,000 at closing.
- TAG Oil to receive a 3.0% gross overriding royalty on future production from all liquids produced from the Permits.
- The Transaction will be funded from Luco's available financial resources. ■