Canada's Tag Oil Closes Oz Deal

Canada’s Tag Oil on October 30 announced it has closed the sale of its Australian subsidiary Cypress Petroleum, the owner of 100% interests in permits PL 17, ATP 2037, and ATP 2038 in Queensland’s Surat basin, to Australia's Luco Energy.

“Following closing of the transaction, Tag Oil has ~C$17mn in cash and will continue to have exposure to the potential upside from a 3% gross overriding royalty on future production from all liquids produced from the permits,” the company said.

Company CEO Toby Pierce said Tag was well-positioned strategically to pursue oil and gas exploration and development opportunities in the initial focus area of the Middle East and North Africa. Tag will get a cash payment of A$2.5mn (US$1.8mn), the company said when the deal was first announced on October 14.