TAG Oil extends evaluation period under service deal

Executive Summary

• TAG Oil Ltd. has secured a three-year extension of the evaluation period for the BED-1 concession with Badr Petroleum Company, extending the deadline to October 13, 2028.
• As part of the extension, TAG Oil is committed to drilling two additional wells at BED-1 to assess the Abu Roash F reservoir, with the option to proceed to full-scale commercial development based on drilling results.
• The company also announced amendments to the employment agreement of Vice-President and Chief Operating Officer Suneel Gupta, extending his tenure until December 31, 2025.

Key Details

• BED-1 Concession Extension: The evaluation period under the petroleum service agreement with Badr Petroleum Company has been extended by three years, now expiring on October 13, 2028.
• Drilling Commitment: TAG Oil commits to drilling two additional wells at the BED-1 site during the extension period.
• Commercial Potential: Subject to the results of the new drilling, TAG Oil retains the right to elect full-scale commercial development of the Abu Roash F reservoir.
• Management Change: Amendments to the employment agreement for Suneel Gupta (VP and COO) confirm his continued role until December 31, 2025, subject to mutual extension.
• Strategic Context: CEO Abby Badwi highlighted that the Southeast Ras Qattara acquisition strengthens the company's position and supports the expansion of landholdings and operations in Egypt.

Notable Quotes

• "We welcome the extension of the evaluation phase, allowing for additional drilling and comprehensive monitoring of multiple wells to better understand the potential of this strategic resource play. The recently announced Southeast Ras Qattara acquisition further strengthens our position and supports the continued expansion of landholdings and our operations in Egypt. We appreciate Mr. Gupta's continued involvement with the company." — Abby Badwi, Executive Chairman and CEO