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Press release from Marketwire

TAG Oil Announces a $25 Million Bought Deal Offering

Wednesday, October 23, 2013

TAG Oil Announces a $25 Million Bought Deal Offering

15:53 EDT Wednesday, October 23, 2013

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 23, 2013) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

TAG Oil Ltd. (the "Company" or "TAG Oil") (TSX:TAO)(OTCQX:TAOIF) is pleased to announce that it has entered into an agreement with Dundee Securities Ltd., on behalf of a syndicate of underwriters co-led by Dundee Securities Ltd. and Casimir Capital Ltd., and including Credit Suisse Securities (Canada) Inc., Cormark Securities Inc., Mackie Research Capital Corporation and M Partners Inc. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis for resale to the public, 5,700,000 common shares (the "Common Shares") of the Company at a price of $4.40 per Common Share for aggregate gross proceeds of $25,080,000 (the "Offering").

The Company has also granted the Underwriters an option to purchase, on the same terms as the Offering, up to an additional 855,000 Common Shares at a price of $4.40 per Common Share for additional gross proceeds of $3,762,000 (the "Over-Allotment Option"). The Over-Allotment Option is exercisable in whole or in part at any time prior to 30 days after the Closing Date (as defined herein). In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be approximately $28,842,000.

Net proceeds of the Offering shall be primarily used to:

  • carry out and accelerate Taranaki Basin drilling, completion and commercialization projects, including TAG's deep Kapuni projects;
  • build TAG's East Coast basin unconventional project team;
  • build a longer-term, clearly defined and executable exploration and development program in the East Coast and Canterbury Basins in New Zealand;
  • increase TAG's land position in the East Coast and Taranaki Basins; and
  • for general corporate purposes.

Closing of the Offering is expected to occur on or about November 13, 2013 (the "Closing Date") and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

TAG Oil Ltd.

TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and exploration company with operations focused exclusively in New Zealand. With 100% ownership over all its core assets, including extensive oil and gas production infrastructure, TAG is enjoying significant organic value creation through development and appraisal drilling of several light oil and gas discoveries and through prospect generation across an extensive acreage position. As New Zealand's leading explorer, TAG actively drills high-impact conventional and unconventional exploration prospects identified in the Taranaki Basin, East Coast Basin and Canterbury Basin that covers more than 2,669,780 net acres of land, prospective for major discovery in New Zealand.

Cautionary Note Regarding 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. Such statements can generally, but not always, be identified by words such as "expects", "plans", "anticipates", "intends", "estimates", "forecasts", "schedules", "prepares", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

All estimates and statements that describe the Offering, use of proceeds of the Offering, plans to carry out and accelerate Taranaki Basin drilling, complete and commercialization projects, build an exploration and development program in the East Coast and Canterbury and increase TAG's land position, the expected Closing Date and receipt of necessary approvals are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Estimates and statements underlying the Company's objectives, goals, production rates, optimization, infrastructure capacity and/or future plans with respect to drilling involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, development, exploitation and production, geological risks, marketing and transportation, the risk associated with estimating undiscovered original initially in-place described above, availability of adequate funding, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers and changes in the regulatory and taxation environment. Forward-looking statements relating to TAG Oil's exploration and development of its oil and gas properties including with respect to completion of its drilling programs involve risks and uncertainties including, without limitation: risks associated with establishment of additional production of oil and gas in accordance with TAG's expectations at its oil and gas properties, well performance, drilling results, successful completion of new infrastructure at its oil and gas properties, successful optimization, the increase of cash flow from new production, achievement of expected growth, successful results of operations, performance results, prospects and evaluation results.

While TAG Oil considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Actual results may differ materially from the information provided in this release, and there is no representation by TAG that the actual results realized in the future will be the same in whole or in part as those presented herein.

Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that TAG and its independent evaluator have made, including TAG Oil's most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG Oil's SEDAR profile at www.sedar.com.

TAG Oil undertakes no obligation, except as otherwise required by law, to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors change.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
TAG Oil Ltd.
Dan Brown or Garth Johnson
1-604-682-6496
info@tagoil.com
Website: http://www.tagoil.com/
Blog: http://blog.tagoil.com/

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