TAG Oil Sells its Australian Royalty Interests

Rhea-AI Summary

TAG Oil (TAOIF) has completed the sale of its Australian royalty interests to Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited, for US$1 million in cash. The sold assets include a 3.0% gross overriding royalty on future potential production revenue from exploration permits PL 17, ATP 2037, and ATP 2038. The transaction, dated June 6, 2025, was conducted at arm's length with no finder fee required. According to CEO Abby Badwi, this strategic divestment aims to enhance financial flexibility and strengthen the company's balance sheet, with proceeds intended to support core business operations in Egypt.

Positive

• Received immediate cash payment of US$1 million, strengthening the balance sheet
• Strategic focus on core operations in Egypt through capital reallocation
• Clean transaction with no finder fees, maximizing proceeds

Negative

• Loss of future potential royalty revenue from Australian assets

Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - TAG Oil Ltd. (TSXV: TAO) (OTCQX: TAOIF) (FSE: T0P) ("TAG Oil" or the "Company") is pleased to announce that it has closed the sale of its Australian royalty interests (3.0% gross overriding royalty on future potential of production revenue from exploration permits PL 17, ATP 2037 and ATP 2038) to Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited (the "Transaction").

Under the terms of the definitive agreement dated June 6, 2025, the Company received a cash payment of US$1,000,000. The Transaction is arm's length and there was no finder fee payable.

Abby Badwi, TAG Oil's Executive Chairman and CEO, commented, "The divestment of the Australian royalty interests is a strategic move to continue to enhance our financial flexibility and bolster our balance sheet. This transaction enables us to allocate additional capital toward our core business operations in Egypt."

About TAG Oil Ltd.

TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company with a focus on operations and opportunities in the Middle East and North Africa.

For further information:

Abdel (Abby) Badwi, Executive Chairman and CEO

Email: info@tagoil.com
Website: http://www.tagoil.com/
LinkedIn: https://www.linkedin.com/company/tag-oil-ltd
X: https://twitter.com/tagoilltd

Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws. All statements in this release, other than statements of historical facts are forward-looking statements. Such forward-looking statements and forward-looking information specifically include, but are not limited to, statements that relate to the Company's plans relating to advancing core business operations.

TAG Oil provides no assurance that forward-looking statements and information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254861

FAQ

What did TAG Oil (TAOIF) sell in its Australian asset sale?

TAG Oil sold its 3.0% gross overriding royalty interests on future potential production revenue from exploration permits PL 17, ATP 2037 and ATP 2038 in Australia.

How much did TAG Oil receive for its Australian royalty interests?

TAG Oil received a cash payment of US$1,000,000 for the sale of its Australian royalty interests.

Who purchased TAG Oil's Australian royalty interests?

Cypress Petroleum Pty Ltd., a subsidiary of Omega Oil and Gas Limited, purchased TAG Oil's Australian royalty interests.

What will TAG Oil do with the proceeds from the Australian royalty sale?

TAG Oil plans to use the proceeds to enhance financial flexibility and allocate additional capital toward its core business operations in Egypt.

When did TAG Oil close the sale of its Australian royalty interests?

TAG Oil closed the sale of its Australian royalty interests on June 9, 2025, with the definitive agreement dated June 6, 2025.