VANCOUVER, June 4, 2012 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO andOTCQX: TAOIF), is pleased to announce that the Company has entered into an agreement with Rawson Taranaki Limited and Zeanco (NZ) Ltd. to acquire three New Zealand exploration permits; Petroleum Exploration Permit 52589, Petroleum Exploration Permit 52676 and Petroleum Exploration Permit 53674. These permits comprise of approximately two-million acres and are situated in favourable geological areas offering high-impact exploration opportunities in the East Coast Basin and in the Canterbury Basin.
This acquisition is complementary to TAG's existing East Coast Basin exploration portfolio, expanding its current play area to the southern extents of the basin. The acquisition also positions TAG with more than one-million acres in the lightly-explored Canterbury Basin. The Canterbury Basin is an emerging frontier play area where large international energy companies are planning to test major offshore oil and gas prospects.
Under the terms of the agreement, TAG will undertake all future exploration work program commitments and pay Cdn$2,300,000 for 100 % interest in the permits. Closing of this transaction is subject to the consent of the Minister of Energy and Resources in New Zealand.
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% control over all its core assets, including oil and gas production infrastructure, TAG is anticipating substantial oil and gas production and reserve growth through development of several light oil and gas discoveries. TAG is also actively drilling high-impact exploration prospects identified across more than 1,300 sections of land in the onshore Taranaki and East Coast Basins of New Zealand's North Island.
In the East Coast Basin, TAG Oil is pursuing the major unconventional resource potential estimated in the fractured shale source-rock formations that are widespread over the Company's acreage. These oil-rich and naturally fractured formations have many similarities to North America's Bakken Shale source-rock formation in the successful Williston Basin.
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 Oil. All estimates and statements that describe the Company's acquisition of the mentioned properties rely on the approval of the Minister of Energy and Resources in New Zealand and thus are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation, risks associated with the acquisition. These forward-looking statements are based on certain factors and assumptions. Consequently, the Company's actual results may vary materially from the information provided in this release and there is no representation by TAG Oil that actual results realized in the future would be the same in whole or in part as those presented herein.
Additional risk factors and uncertainties that could cause actual results to differ from those contained in the forward-looking statements are set forth in, but are not limited to, filings that the Company and its independent evaluator have made, including the Company's Annual Information Form and its most recent reports in Canada under National Instrument 51-101.
SOURCE TAG Oil Ltd.