TAG Oil Sells NZ Royalties for US$2.5 million, Fully Exits Kiwi Market

Key Points:

• At the time of writing, TAG Oil has sold NZ royalty assets for US$2.5 million.
• The deal includes royalties from six oil permits in Taranaki.
• The move aligns with TAG’s focus on growth regions outside New Zealand.

Canadian energy firm completes final divestment from New Zealand assets

At the time of writing, Canadian-based oil and gas explorer TAG Oil Ltd (TSX: TAO) has formally completed the sale of its last remaining royalty interests in New Zealand, marking a full departure from the country’s energy sector six years after ending its active operations there.

Sale Finalised with Kiwi Royalty Buyer

On April 8, TAG Oil announced it had reached an agreement with an unrelated third party—later revealed to be Kiwi Royalty—to divest its 2.5% gross overriding royalty tied to production across several oil permits in Taranaki. These included the Cheal, Cardiff, Sidewinder, Supplejack, Puka, and Cheal East sites. The total transaction value is up to US$2.5 million (NZ$4.2 million).

The sale officially closed this week, securing the Canadian company’s final detachment from its New Zealand portfolio.

Strategic Exit to Focus on Core Assets

TAG Oil originally wound down its New Zealand operations in 2019. Since then, the company has shifted its focus to other international assets, particularly in the Middle East and North Africa. The latest transaction fits into that long-term strategy of reallocating capital to higher-growth regions.

TAG Oil’s chief executive Toby Pierce stated that the sale represents a clean break, enabling the company to direct its resources toward exploration and production opportunities that align more closely with its strategic priorities.

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