Vancouver-based Tag Oil Ltd. (TSX-V:TAO) plans to sell its New Zealand operations and is in discussions with various advisory firms over the company's strategic alternatives.
The company's main asset is its 30.5% interest in New Zealand's Cheal oil production facility. Tag's share of the field is now producing about 850 barrels of oil per day. That total is expected to increase to between 1,200 and 1,500 barrels a day by 2008. It also has several other deep gas prospects in New Zealand.
Options Tag is considering include sale of some or all of its assets, a merger with another company or getting involved in joint ventures.
A reason for the proposed sale of the company's assets was not disclosed, however, the company announced three weeks ago that its CEO, Drew Cadenhead, would be resigning September 1 for personal reasons. Tag CFO Garth Johnson replaced Cadenhead last week.
Tag's share price range during the past week: between $0.155 and $0.18; 52-week high: $0.75; 52-week low: $0.10.