TAG Oil closes $25.3 million underwritten offering of common shares
On October 11, 2022, TAG Oil Ltd. (“TAG Oil”) announced that it filed a preliminary short form prospectus with the securities commissions in all provinces of Canada, except Québec, in connection with a overnight marketed public offering of common shares in the capital of the company seeking to raise aggregate gross proceeds of C$20 million.
Due to strong investor demand, an upsize to the offering was announced on October 12, 2022. The company entered into an underwriting agreement with a syndicate of underwriters led by Research Capital Corporation, as co-lead underwriter and sole-bookrunner and Echelon Capital Markets, as co-lead underwriter and Tennyson Securities for the sale of 55,000,000 common shares at a price of C$0.40 per share for aggregate gross proceeds of C$22 million.
TAG Oil also granted the underwriters an option, exercisable in whole or in part, at the sole discretion of the underwriters, at any time from time to time for a period of 30 days from and including the closing of the offering, to purchase up to an additional 15% of the shares sold under the offering, on the same terms and conditions. In the event the option is exercised in full, the aggregate gross proceeds will be C$25.3 million.
Closing of the offering, including the full exercise of the over-allotment option, was announced on November 4, 2022.
TAG Oil intends to use the net proceeds of the offering to:
- fund the company’s fourth quarter 2022 and 2023 operational and drilling budget at the Abu Roash “F” reservoir in the Badr Oil Field, located in the Western Desert of Egypt;
- conduct technical studies and evaluations to pursue other acquisition opportunities in Egypt;
- place equipment inventory orders for TAG Oil’s 2024 drilling campaign; and
- unallocated working capital.
Further information can be found on Canada Newswire’s website.
TAG Oil is a Canadian based international oil and gas exploration company with a focus on opportunities in the Middle East and North Africa.