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TAG Oil announces sale of Australian assets and operations

Christian 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
This is an arm's length transaction that involves the sale by TAG Oil of the shares of its Australian subsidiary, Cypress Petroleum Pty Ltd., which holds the Company's 100% working interests in PL 17, ATP 2037, and ATP 2038 located in the Surat Basin of Queensland, Australia to Luco.

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.

Transaction Highlights:

- 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.