TAG Oil Announces $10 Million Bought-Deal Public Offering

NOT FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, British Columbia, July 31, 2023 (GLOBE NEWSWIRE) -- TAG Oil Ltd. (TSXV: TAO and OTCQX: TAOIF) (“TAG Oil” or the “Company”) is pleased to announce that it has entered into an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Echelon Wealth Partners Inc., Canaccord Genuity Corp., and Haywood Securities Inc. (collectively, the “Underwriters”), to purchase, as principal on a bought-deal basis, 17,250,000 common shares of the Company (the “Common Shares”) at a price of $0.58 per Common Share for aggregate gross proceeds to the Company of $10,005,000 (the “Offering”).

The Company intends to grant the Underwriters an option, exercisable in whole or in part, at the sole discretion of the Underwriters, at any time, from time to time, for a period of 30 days from and including the closing of the Offering, to purchase from the Company up to an additional 15% of the Common Shares sold under the Offering, on the same terms and conditions of the Offering to cover over-allotments, if any, and for market stabilization purposes (the “Over-Allotment Option”).

The net proceeds of the Offering will be used to accelerate a multi-well horizontal drilling program of the Abu Roash “F” reservoir in the Badr Oil Field, located in the Western Desert of Egypt (with the first horizontal well expected to spud in early August 2023), pursue potential strategic acquisition opportunities in Egypt and the broader Middle East and North Africa region, and for general working capital purposes.

The closing of the Offering is expected to occur on or about the week of August 21, 2023 (the “Closing”), or such later or earlier date as the Underwriters and the Company may determine and is subject to the Company receiving all necessary regulatory and TSX Venture Exchange (the “TSX-V”) approvals, including the approval to list the Common Shares.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada, except Quebec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and, with the consent of the Company, may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law, and outside of Canada and the United States on a private placement or equivalent basis.