Tag Oil Moves Ahead with NZ Assets Sale

Canada-listed Tag Oil January 3 said it has received shareholders' approval to sell its oil and gas assets in the Taranaki Basin in New Zealand to Malaysia-based Tamarind Resources for US$30mn.

The transaction will be funded by Tamarind’s available financial resources, Tag Oil said. The deal has an effective date of October 1, 2018 with an anticipated closing date of March 31, 2019 and is subject to regulatory approvals.

By exiting New Zealand, Tag will be in a better position to pursue its exploration prospects covering over 275,000 net acres in Australia, including the producing 25,000-acre petroleum mining license in the Surat Basin, it said early-November when the deal was first announced.

In New Zealand, Tag’s operations include production from the Cheal and Sidewinder oil and gas fields with the Puka, Supplejack and Cardiff new pool discoveries under development. The company owns and operates three production facilities in the Taranaki Basin, which are linked directly to Taranaki’s main gas distribution pipeline.

In Australia, Tag holds Petroleum Lease 17, which includes two undeveloped light-oil fields and a deeper Permian oil play, an unconventional tight gas/condensate play opportunity.