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The latest announcement is out from TAG Oil ( (TSE:TAO) ).
TAG Oil has raised $11.5 million in gross proceeds through a brokered unit offering priced at $0.10, including the full exercise of the over-allotment option, split between a listed issuer financing exemption tranche and a private placement. Each unit comprises one common share and a warrant exercisable at $0.13 until 2030, with a portion subscribed by company insiders under related-party exemptions.
The company plans to deploy the funds to accelerate unconventional appraisal and development at its BED-1 and Southeast Ras Qattara concessions in Egypt, including drilling a new vertical delineation well in the Abu Roash F play and conducting a DFIT, plus an additional well at SERQ. The financing strengthens TAG Oil’s capital position to advance its Western Desert resource plays, though the transaction remains subject to final TSX Venture Exchange approval and includes broker compensation via cash commissions and broker warrants.
The most recent analyst rating on (TSE:TAO) stock is a Hold with a C$0.09 price target. To see the full list of analyst forecasts on TAG Oil stock, see the TSE:TAO Stock Forecast page.
Spark’s Take on TSE:TAO Stock
According to Spark, TipRanks’ AI Analyst, TSE:TAO is a Neutral.
The score is primarily held back by very weak operating performance and cash flow (losses and ongoing cash burn). A low-leverage balance sheet provides some offset by improving financial flexibility, while technicals are neutral-to-slightly improving and valuation is constrained by a negative P/E.
To see Spark’s full report on TSE:TAO stock, click here.
More about TAG Oil
TAG Oil Ltd. is a Canadian-based oil and gas company listed on the TSX Venture Exchange, OTCQB, and Frankfurt Stock Exchange. The company focuses on unconventional oil resource development, with current core operations centered on large oil-in-place plays in Egypt’s Western Desert, particularly the BED-1 and Southeast Ras Qattara concessions.
Average Trading Volume: 549,667
Technical Sentiment Signal: Sell
Current Market Cap: C$22.65M
Find detailed analytics on TAO stock on TipRanks’ Stock Analysis page.