TAG Oil Reports Q3 2021 Results
TAG Oil Ltd. (TSXV: TAO, OTCQX: TAOIF) announced its financial results for Q3 ending December 31, 2020. The company reported cash and cash equivalents of C$16.3 million and working capital of C$18.8 million, both up from the previous quarter. TAG Oil has no debt and incurred capital expenditures of C$78,000 during the quarter, primarily related to the sale of its Australian subsidiary. The company divested its Australian operations for A$2.5 million cash and a 3% royalty on future production, shifting its focus to the Middle East and North Africa for growth.
- Increased cash and cash equivalents to C$16.3 million from C$15.1 million in the previous quarter.
- Working capital rose to C$18.8 million, up from C$17.6 million.
- No debt, providing financial stability.
- Successful divestment of Australian assets for A$2.5 million, allowing for strategic refocusing.
- Capital expenditures increased to C$78,000, indicating ongoing financial commitments.
VANCOUVER, BC, Feb. 16, 2021 /PRNewswire/ - TAG Oil Ltd. ("TAG Oil" or the "Company", TSXV: TAO and OTCQX: TAOIF) is pleased to report the filing of its third quarter results for the interim period ending December 31, 2020. Highlights over the period include:
- At December 31, 2020, the Company had C
$16.3 million (September 30, 2020: C$15.1 million ) in cash and cash equivalents and C$18.8 million (September 30, 2020: C$17.6 million ) in working capital. The Company also has no debt. - Capital expenditures totaled C
$78,000 for the quarter ended December 31, 2020, compared to C$50,000 for the quarter ended September 30, 2020. Most of the capital expenditures relates to the sale of TAG Oil's Australian subsidiary in early Q3 2021. - On October 30, 2020, the Company completed a share and asset purchase agreement to divest its Australian assets and operations located in the Surat Basin of Queensland, Australia for a cash payment of A
$2,500,000 (CAD$2,308,240) at closing and a3.0% gross overriding royalty on future production from all liquids produced from the permits (PL 17, ATP 2037, and ATP 2038).
TAG Oil continues to manage its costs and allocate the necessary resources towards its business development efforts to maximize value for its shareholders. The sale of TAG Oil's Australian assets and operations is part of a strategic realignment of the Company's oil and gas exploration and development activities, which is now focused on opportunities in the Middle East and North Africa. Further information on these efforts will be provided by TAG Oil in due course.
About TAG Oil Ltd.
TAG Oil (http://www.tagoil.com/) is a Canadian based international oil and gas exploration company.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain of the statements made and information contained herein is considered "forward-looking information" within the meaning of applicable Canadian securities laws, including statements with regard to the Company's operations and potential strategic opportunities. These statements address future events and conditions and are reliant on assumptions made by the Company's management, and so involve inherent risks and uncertainties, as disclosed in the Company's periodic filings with Canadian securities regulators. As a result of these risks and uncertainties, and the assumptions underlying the forward-looking information, actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement, except as required by applicable law.
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SOURCE TAG Oil Ltd.
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