Adding to Our New Zealand Portfolio

Source Press Release
Company Tamarind Management Sdn BhdTAG Oil Ltd. 
Tags Tight Gas & Liquids, Asset Deals, Deals, Upstream Activities
Date November 07, 2018

Tamarind would like to announce that it has entered into a share and asset purchase agreement with TAG Oil Ltd. to acquire their Taranaki Basin assets. The sale will include TAG’s 100% working interests in: PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki) and TAG’s 70% interest in PMP 60291 (Cheal East) and PEP 54877 (Cheal East).

We are pleased to be adding to our existing New Zealand portfolio, which is currently focused offshore. Acquiring these onshore assets will provide an opportunity to further leverage our existing capabilities in NZ. The TAG assets currently produce approximately 1,370 boe/d gross with 2P reserves of 4.2MMboe and 3P reserves of 7.9MMboe. We will continue to build on our capabilities in production optimization to further develop the field.

Transaction Highlights

  • Cash payment to TAG of US$30 million at closing.
  • TAG to receive a 2.5% gross overriding royalty on future production from all NZ Assets.
  • Up to US$5 million in event specific payments payable on achieving various milestones (first milestone, grant of PMP 60454 (Supplejack) conversion, has already been achieved triggering payment of US$500,000 at closing).
  • The Transaction will be funded from Tamarind’s available financial resources.

We expect the transaction to close in the first quarter of 2019, depending on the required regulatory and corporate approvals.

Source: EvaluateEnergy® ©2020 EvaluateEnergy Ltd