TAG Oil's $10M Offering: Fueling Growth in Egypt

TAG Oil Ltd. (TSXV:TAO, OTCQX:TAOIF, and FSE:T0P), a Canadian-based international oil and gas exploration company, has announced the pricing of its previously announced $10 million marketed public offering of units of the Company (the "Units") at a price of $0.17 per Unit (the "Offering"). The Offering is being led by Research Capital Corporation, as lead agent and sole bookrunner, on behalf of a syndicate of agents.

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. The funds will also be used 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.


TAG Oil's new vision is fully supported by the management and executive team's strong track record of industry (and regional) success. The Company continues to receive the benefits of production royalties in New Zealand while targeting and pursuing high-probability acquisitions in the Middle East and North African region.

The pricing of the offering ($0.17 per Unit) is a reflection of TAG Oil's current market valuation and the potential growth opportunities in Egypt. The participation of management and directors in the offering signals their confidence in TAG Oil's future prospects and commitment to the Company's long-term success.


TAG Oil's acquisition strategy aligns with its financial objectives and risk management. By expanding its operations in Egypt, the Company aims to tap into the region's vast oil and gas resources while mitigating risks through strategic joint venture partnerships. The exploration and appraisal activities in Egypt's Western Desert contribute to TAG Oil's overall growth strategy by increasing its reserves and production.

TAG Oil faces potential challenges and opportunities in the Middle East and North African region. The Company plans to mitigate risks by conducting thorough due diligence, maintaining a strong balance sheet, and fostering strategic partnerships. By doing so, TAG Oil can capitalize on the region's growth potential while ensuring the sustainability of its operations.

In conclusion, TAG Oil's $10M offering is a significant step towards fueling the Company's growth in Egypt. With a strong management team and a well-defined strategy, TAG Oil is poised to capitalize on the region's oil and gas opportunities while maintaining a solid financial foundation.