TAG Oil Ltd. (TAO:TSX) announced in a news release that the divestiture of its New Zealand assets to Tamarind Resources closed.
"We would like to thank our team for their dedication throughout this process and to our shareholders for their patience," TAG CEO Toby Pierce said in the release.
Now, TAG Oil has about $30 million in cash from the transaction and continued exposure to upside from the assets via two instruments.
One is TAG Oil's 5% gross royalty on future production from PMP 38156 (Cheal and Cardiff), PMP 53803 (Sidewinder), PMP 60454 (Supplejack), PEP 51153 (Puka), PEP 57065 (Waitoriki), PMP 60291 (Cheal East) and PEP 54877 (Cheal East).
The other is milestone payments of up to $5 million. Tamarind already paid the oil and gas explorer the first event-specific payment, $500,000, upon conversion of PMP 60454 (Supplejack).
Looking forward, TAG Oil noted that it will continue to assess its exploration prospects in Australia in addition to other attractive opportunities.
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