By: Globe newswire

TAG Oil Ltd. (TSXV:TAO, OTCQX:TAOIF, and FSE:TOP) (“TAG Oil” or the “Company”) is pleased to announce that it has filed a preliminary short form prospectus (“Preliminary Prospectus”) with the securities commissions in all provinces of Canada, except Québec, in connection with an overnight marketed public offering (the “Offering”) of units of the Company (the “Units”) at a price of $0.21 per Unit for aggregate gross proceeds of C$10,000,000.

Certain members of management and directors of the Company intend to participate alongside investors in the Offering.

The Offering is being led by Research Capital Corporation, as lead underwriter and sole-bookrunner, on behalf of a syndicate of underwriters (collectively, the “Underwriters”).

Each Unit will consist of one common share of the Company (“Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (a “Warrant Share”) at an exercise price equal to $0.30 per Warrant Share at any time up to 24 months following the closing of the Offering.

The Company intends to use the net proceeds of the Offering to advance appraisal and development activities in the Western Desert, Egypt, at both the Badr Oil Field and strategic new 512,000-acre concession and for working capital and general corporate purposes. Activities to be advanced with the proceeds include executing re-entry work on multiple existing wells to recomplete and/or drill a sidetrack into existing conventional oil reservoirs, the drilling of new vertical delineation wells in the unconventional Abu Roash “F” (ARF) resource play targeting high intensity natural fractured areas, and the planning of the next horizontal well with multi-stage frac.

In addition, the Company plans to also complete a third-party resource report on the new strategic 512,000-acre concession that is in the process of being acquired and conduct a potential strategic joint venture partnership process.

The Company has 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 from the Company up to an additional 15% of the Units sold under the Offering, and/or the components thereof, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes.

The Offering is expected to be priced in context of the market, with the final price of the Units and final exercise price of the Warrants to be determined at the time of pricing.

The Offering is expected to close on or about the week of November 11, 2024, or such other date as the Company and the Underwriters may agree. Closing of the Offering is subject to customary closing conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the TSX Venture Exchange.

The Units are being offered in each of the provinces of Canada (except Québec) and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law, and outside of Canada and the United States on a private placement or equivalent basis. The Preliminary Prospectus is available on SEDAR+ at www.sedarplus.ca and may be obtained from Research Capital Corporation at ecm@researchcapital.com. The Preliminary Prospectus contains important information about the Company and the Offering. Prospective investors should read the Preliminary Prospectus and other documents the Company has filed before making an investment decision.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.