TAG Oil (TAOIF) has completed the sale of its Australian royalty interests to Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited, for US$1 million in cash. The sold assets include a 3.0% gross overriding royalty on future potential production revenue from exploration permits PL 17, ATP 2037, and ATP 2038. The transaction, dated June 6, 2025, was conducted at arm's length with no finder fee required. According to CEO Abby Badwi, this strategic divestment aims to enhance financial flexibility and strengthen the company's balance sheet, with proceeds intended to support core business operations in Egypt.
TAG Oil (TAOIF) ha completato la vendita dei suoi interessi royalties in Australia a Cypress Petroleum Pty Ltd., una controllata di Omega Oil and Gas Limited, per 1 milione di dollari USA in contanti. Gli asset ceduti comprendono una royalty lorda del 3,0% sui ricavi potenziali futuri derivanti dalla produzione dai permessi di esplorazione PL 17, ATP 2037 e ATP 2038. La transazione, datata 6 giugno 2025, 猫 stata effettuata a condizioni di mercato senza alcuna commissione di intermediazione. Secondo la CEO Abby Badwi, questa dismissione strategica mira a migliorare la flessibilit脿 finanziaria e rafforzare il bilancio della societ脿, con i proventi destinati a sostenere le operazioni principali in Egitto.
TAG Oil (TAOIF) ha completado la venta de sus intereses de regal铆as en Australia a Cypress Petroleum Pty Ltd., una subsidiaria de Omega Oil and Gas Limited, por 1 mill贸n de d贸lares estadounidenses en efectivo. Los activos vendidos incluyen una regal铆a bruta del 3.0% sobre los ingresos potenciales futuros de producci贸n de los permisos de exploraci贸n PL 17, ATP 2037 y ATP 2038. La transacci贸n, fechada el 6 de junio de 2025, se realiz贸 en condiciones de mercado sin comisi贸n de intermediaci贸n. Seg煤n la CEO Abby Badwi, esta desinversi贸n estrat茅gica busca mejorar la flexibilidad financiera y fortalecer el balance de la empresa, destinando los ingresos para apoyar las operaciones principales en Egipto.
TAG Oil (TAOIF) a finalis茅 la vente de ses int茅r锚ts de redevances en Australie 脿 Cypress Petroleum Pty Ltd., une filiale d'Omega Oil and Gas Limited, pour 1 million de dollars am茅ricains en esp猫ces. Les actifs vendus comprennent une redevance brute de 3,0 % sur les revenus potentiels futurs de production issus des permis d'exploration PL 17, ATP 2037 et ATP 2038. La transaction, dat茅e du 6 juin 2025, a 茅t茅 r茅alis茅e 脿 des conditions de march茅 sans frais d'interm茅diaire. Selon la PDG Abby Badwi, cette cession strat茅gique vise 脿 am茅liorer la flexibilit茅 financi猫re et 脿 renforcer le bilan de l'entreprise, les recettes 茅tant destin茅es 脿 soutenir les op茅rations principales en 脡gypte.
TAG Oil (TAOIF) hat den Verkauf seiner australischen Lizenzgeb眉hrenanteile an Cypress Petroleum Pty Ltd., eine Tochtergesellschaft von Omega Oil and Gas Limited, f眉r 1 Million US-Dollar in bar abgeschlossen. Die verkauften Verm枚genswerte umfassen eine Brutto-脺berroylit盲t von 3,0 % auf potenzielle zuk眉nftige Produktionserl枚se aus den Explorationsgenehmigungen PL 17, ATP 2037 und ATP 2038. Die Transaktion vom 6. Juni 2025 wurde zu markt眉blichen Bedingungen ohne Vermittlungsgeb眉hr durchgef眉hrt. Laut CEO Abby Badwi soll dieser strategische Verkauf die finanzielle Flexibilit盲t verbessern und die Bilanz des Unternehmens st盲rken, wobei die Erl枚se zur Unterst眉tzung der Kernaktivit盲ten in 脛gypten verwendet werden sollen.
Positive
Received immediate cash payment of US$1 million, strengthening the balance sheet
Strategic focus on core operations in Egypt through capital reallocation
Clean transaction with no finder fees, maximizing proceeds
Negative
Loss of future potential royalty revenue from Australian assets
Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) (FSE: T0P) ("TAG Oil" or the "Company") is pleased to announce that it has closed the sale of its Australian royalty interests (3.0% gross overriding royalty on future potential of production revenue from exploration permits PL 17, ATP 2037 and ATP 2038) to Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited (the "Transaction").
Under the terms of the definitive agreement dated June 6, 2025, the Company received a cash payment of US$1,000,000. The Transaction is arm's length and there was no finder fee payable.
Abby Badwi, TAG Oil's Executive Chairman and CEO, commented, "The divestment of the Australian royalty interests is a strategic move to continue to enhance our financial flexibility and bolster our balance sheet. This transaction enables us to allocate additional capital toward our core business operations in Egypt."
About TAG Oil Ltd.
TAG Oil () is a Canadian based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to the Company's plans relating to advancing core business operations.
TAG Oil provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
To view the source version of this press release, please visit
FAQ
What did TAG Oil (TAOIF) sell in its Australian asset sale?
TAG Oil sold its 3.0% gross overriding royalty interests on future potential production revenue from exploration permits PL 17, ATP 2037 and ATP 2038 in Australia.
How much did TAG Oil receive for its Australian royalty interests?
TAG Oil received a cash payment of US$1,000,000 for the sale of its Australian royalty interests.
Who purchased TAG Oil's Australian royalty interests?
Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited, purchased TAG Oil's Australian royalty interests.
What will TAG Oil do with the proceeds from the Australian royalty sale?
TAG Oil plans to use the proceeds to enhance financial flexibility and allocate additional capital toward its core business operations in Egypt.
When did TAG Oil close the sale of its Australian royalty interests?
TAG Oil closed the sale of its Australian royalty interests on June 9, 2025, with the definitive agreement dated June 6, 2025.
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