TAG Oil Reviewing Strategic Options
September 07 2007 - 11:37AM
PR Newswire (US)
VANCOUVER, Sept. 7 /PRNewswire-FirstCall/ -- Independent Canadian
oil and gas production and exploration company TAG Oil Ltd. (TSX-V:
TAO and OTCBB: TAGOF) announced today that the Company is holding
talks with a number of advisory firms to execute an agreement to
assist the Company in its review of strategic alternatives for its
New Zealand operations. Alternatives under consideration for TAG
include an outright sale of some or all of its New Zealand
interests and facilities, consideration of potential merger
opportunities, farming-out certain prospects to key industry
participants and entering into promising new joint venture
opportunities that meet the Company's risk profile. "With the Cheal
production facility fully operational, TAG is in an excellent
position to leverage its New Zealand oil and gas assets. Cheal is
now producing approximately 850 barrels per day (TAG 30.5%) and is
projected to increase to 1200-1500 barrels per day in 2008," stated
Garth Johnson, TAG Oil Chief Executive Officer. TAG's primary asset
is a 30.5% interest in the Cheal Oil field and the associated Cheal
production facility with proved and probable reserves having been
independently estimated at 2.6 million barrels of oil gross for the
field. The Company also holds a number of oil and gas prospects
holding significant resource potential, some of which are: the
Crossroads oil prospect (TAG: 30.5.%), the Waitoriki deep gas
prospect (TAG: 45%), the Cardiff deep gas prospect (TAG: 15.1%),
the Kahili deep gas prospect (TAG: 15%) and the Onaero gas prospect
(TAG: 16.67%). Mr. Johnson further stated, "In addition to some
attractive development and high graded exploration prospects, TAG
Oil is one of the few small Canadian-based internationals that has
developed and established oil production in a politically stable
environment and I believe we can use this to our advantage." The
Company cautions that there can be no assurance that the review of
strategic alternatives will ultimately result in a transaction.
About TAG Oil: TAG Oil Ltd. is an independent Canadian oil and gas
exploration and production company with international operations in
the Taranaki and East Coast Basins of New Zealand. 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.
Actual results may vary materially from the information provided in
this release. As a result there is no representation by TAG Oil
that the actual results realized in the future will be the same in
whole or in part as those presented herein. Actual results may
differ materially from the results predicted, and reported results
should not be considered as an indication of future performance.
Factors 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 most recent reports in
Canada under National Instrument 51-102 and in the United States
under Forms 20-F and 6K. The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of
this release. CONTACT: Garth Johnson, , (604) 609-3350 DATASOURCE:
TAG Oil Ltd. CONTACT: Garth Johnson, , (604) 609-3350
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