TAG Oil arranges $5-million private placement

Executive Summary

• TAG Oil Ltd. has entered into an agreement for a brokered, best-effort private placement offering of up to $5 million in gross proceeds.
• The funds are designated to advance appraisal and development activities on the BED-1 and SERQ concessions in Egypt, specifically targeting unconventional oil resources.
• The offering consists of units priced at 10 cents each, comprising one common share and one warrant exercisable at 13 cents.

Key Details

• Transaction Structure: Brokered, best-effort listed issuer financing exemption private placement.
• Lead Agent: Research Capital Corp. (sole bookrunner).
• Gross Proceeds: Up to $5,000,000.
• Price Per Unit: $0.10 CAD.
• Unit Composition: One common share and one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.13 per common share.
  • Duration: 48 months following closing.
  • Listing: Company intends to seek TSX Venture Exchange listing for the warrants.
• Agent Compensation:
  • Cash Commission: 8.0% of aggregate gross proceeds.
  • Broker Warrants: Equal to 8.0% of the number of units sold, exercisable at the issue price for 48 months.
• Use of Proceeds:
  • Drilling a new vertical delineation well at BED-1 (targeting lighter-gravity crude in the Abu Roash F unconventional resource play).
  • Performing a diagnostic fracture injectivity test at the SERQ concession to evaluate Abu Roash F potential.
  • Working capital and general corporate purposes.
• Resource Highlights:
  • BED-1: Independent engineers assigned 532 million barrels of oil in place (OIIP) to the Abu Roash F resource.
  • SERQ: Independent volumetric assessment estimates ~3.2 billion barrels OIIP across 512,000 acres; NI 51-101 resource report expected Q1 2026.
• Closing Timeline: Expected on or about the week of Feb. 16, 2026, subject to regulatory approvals (including TSX Venture Exchange conditional approval).
• Jurisdiction: Available in all Canadian provinces except Quebec, and other qualifying jurisdictions including the United States.
• Subscription: Management, directors, and president's list investors are expected to subscribe alongside other investors.