VANCOUVER, Dec. 6, 2013 /CNW/ - TAG Oil Ltd. (TSX: TAO and OTCQX: TAOIF), reports that the Company intends to launch a normal course issuer bid (the "Bid") to purchase up to 6,073,339 of its common shares through the facilities of the Toronto Stock Exchange (the "TSX"), subject to TSX acceptance.
The purchase of common shares under the Bid will enable the Company to acquire its shares for cancellation. TAG believes that the market price of the Company's common shares may not reflect their underlying value and that the purchase of common shares for cancellation will increase the proportionate interest of, and will be advantageous to, all remaining shareholders.
There have been 867,000 common share purchased and cancelled under a normal course issuer bid by TAG within the past twelve months at an average weighted purchase price of $3.83 per common share.
Currently, TAG has 64,687,052 common shares issued and outstanding. The common shares that may be repurchased over a twelve-month period represent approximately 10% of TAG's 60,733,391 outstanding common shares in the public float. TAG has appointed Richardson GMP Limited (formerly Macquarie Private Wealth Inc.) as the Participating Organization that will be conducting the Bid on behalf of TAG with purchases under the Bid being able to commence on December 10, 2013, and will terminate on December 9, 2014, or on such earlier date as the Bid is complete. The average daily trading volume of the common shares for the previous six calendar months (the "ADTV") was 205,851 common shares. The amount and timing of such purchases will be determined by TAG and, in accordance with TSX policies, on any trading day, the amount of daily purchases may not exceed 25% of the ADTV or 51,462 common shares.
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 exploration success and ongoing development and appraisal drilling of several light oil and gas discoveries. 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 2,736,390 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, 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 Company's objectives, goals, or future plans relating to the Bid are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties. Actual results may vary 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's most recently filed reports in Canada under National Instrument 51-101, which can be found under TAG's SEDAR profile at www.sedar.com. TAG 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.
SOURCE TAG Oil Ltd.