TAG Oil Announces Closing of $11.5 Million Offering, Including Full Exercise of the Over-Allotment Option, to Advance Unconventional Development Activities on Its Large Oil-In-Place Resource Play at BED-1 and SERQ Concessions, Egypt

Core Viewpoint - TAG Oil Ltd. has successfully closed a brokered offering of units, raising a total of $11,500,000, which will be used for development activities in Egypt and general corporate purposes [1][2]. Group 1: Offering Details - The offering consisted of units priced at $0.10 each, with each unit comprising one common share and one warrant, allowing the purchase of an additional common share at $0.13 until February 18, 2030 [1]. - The offering was led by Research Capital Corporation and included the full exercise of the over-allotment option [1]. - The company issued 5,640,000 units under the "listed issuer financing exemption" and 5,860,000 units under a private placement [12]. Group 2: Use of Proceeds - The net proceeds will be allocated to appraisal and development activities at the Badr Oil Field and Southeast Ras Qattara concessions in Egypt [2]. - Specific activities include drilling a new vertical delineation well at BED-1 and conducting a Diagnostic Fracture Injectivity Test at the SERQ Concession [2]. Group 3: Insider Participation - Insiders of the company acquired a total of 4,500,000 units in the offering, which is classified as a related-party transaction [4]. - The company is relying on exemptions from formal valuation and minority security holder approval requirements due to the offering's value being below 25% of its market capitalization [4]. Group 4: Financial Arrangements - TAG Oil paid a cash commission of $704,320 to the agents and issued 7,043,200 broker warrants, each exercisable at $0.10 until February 18, 2030 [7]. - An advisory fee of $98,500 plus tax was also paid, along with the issuance of 985,000 advisory warrants on the same terms as the broker warrants [7].