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1/14/2013 1:25:05 PM
TAG Oil Ltd. (TAO.TO) announced that Apache New Zealand Corporation LDC has informed the company that it will elect not to undertake the Phase 2 program under the Farmout Agreement dated September 1, 2011, between Eastern Petroleum (NZ) Limited, Orient Petroleum (NZ) Limited and ANZ relating to drilling in the East Coast Basin of New Zealand. Eastern and Orient are indirect wholly-owned subsidiaries of TAG.
TAG intends to continue and complete the Phase 1 program. Under the Farmout Agreement, ANZ is obligated to pay all costs and expenses actually incurred or committed in respect of the Phase 1 program.
TAG CEO Garth Johnson stated "We look forward to executing our long-term goal for the East Coast; to drill and hopefully prove the concept of unconventional oil potential in this frontier basin."