11-13-13 8:13 AM EST | Email Article

TAG Oil Closes $25,080,000 Bought Deal Offering

Canada NewsWire

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

VANCOUVER, Nov. 13, 2013 /CNW/ - TAG Oil Ltd. (the "Company" or "TAG") (TSX: TAO) (OTCQX: TAOIF) is pleased to announce that it has closed the previously announced bought deal offering of common shares of the Company ("Common Shares") for aggregate gross proceeds of $25,080,000 (the "Financing").  Pursuant to an underwriting agreement dated effective as of October 23, 2013 (the "Underwriting Agreement"), the Company, through a syndicate of underwriters co-led by Dundee Securities Ltd. and Casimir Capital Ltd., and including Credit Suisse Securities (Canada) Inc., Cormark Securities Inc., Mackie Research Capital Corporation and M Partners Inc. (collectively, the "Underwriters"), issued 5,700,000 Common Shares, at a price of $4.40 per Common Share (the "Offering Price"), for aggregate gross proceeds of $25,080,000. Pursuant to the terms of the Underwriting Agreement, the Company has granted the Underwriters an option to purchase up to an additional 855,000 Common Shares, at the Offering Price, until December 13, 2013.

The Company anticipates that the net proceeds of the Financing will primarily be used to:

  • carry out and accelerate Taranaki Basin drilling, completion and commercialization projects, including TAG's deep Kapuni projects;
  • build TAG's East Coast basin unconventional project team;
  • build a longer-term, clearly defined and executable exploration and development program in the East Coast and Canterbury Basins in New Zealand;
  • increase TAG's land position in the East Coast and Taranaki Basins; and
  • for general corporate purposes.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

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 extensive oil and gas production infrastructure, TAG is enjoying significant organic value creation through exploration success and ongoing development and appraisal drilling of several light oil and gas discoveries. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified in the Taranaki Basin, East Coast Basin and Canterbury Basin that covers more than 2,669,780 net acres of land, prospective for major discovery in New Zealand.

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 Financing, use of proceeds, plans to carry out and accelerate Taranaki Basin drilling, completion and commercialization projects, building an exploration and development program in the East Coast and Canterbury Basins and increasing TAG's land position are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Estimates and statements underlying the Company's objectives, goals, production rates, optimization, infrastructure capacity and/or future plans with respect to drilling involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered original initially in-place described above, availability of adequate funding, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers and changes in the regulatory and taxation environment. Forward-looking statements relating to TAG's exploration and development of its oil and gas properties including with respect to completion of its drilling programs involve risks and uncertainties including, without limitation: risks associated with establishment of additional production of oil and gas in accordance with TAG's expectations at its oil and gas properties, well performance, drilling results, successful completion of new infrastructure at its oil and gas properties, successful optimization, the increase of cash flow from new production, achievement of expected growth, successful results of operations, performance results, prospects and evaluation results.

While TAG considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Actual results may differ 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.

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