The Vancouver-headquartered company said it had recently completed the sale of its 33.3% interest in the onshore Taranaki Radnor mining licence, PMP 38157, which it formerly operated, for an undisclosed sum to companies associated with private New Zealand explorer Greymouth Petroleum.
Greymouth now holds near total control of Radnor, which several years ago flowed small quantities of gas to the Methanex Waitara Valley methanol plant, after buying out TAG, former partner Westech Energy (33.3%), and acquiring over 90% of private company Bridge Petroleum (33.3%) late last year.
The field's last well was the unsuccessful Radnor-1A sidetrack, which failed to flow commercial quantities of gas from the Eocene-aged McKee sands during mid-2006.
TAG has also executed agreements with New Zealand integrated energy company Genesis Energy to complete the sale of TAG's 15.1% interest in exploration licence PEP 38738-D and associated mining licence PMP 38156-D, which contains the Cardiff deep gas prospect, for an undisclosed sum and 1% royalty on any future production from both permits.
As well, the Canadian company has assigned its 35.5% interest in offshore East Coast Basin licence PEP 38342 to operator United States independent Discovery Geo Corporation. TAG will also receive an undisclosed sum, as well as a 1.11% royalty on any future production from this permit.
Company chief executive Garth Johnson said TAG believed it best to sell its non-core assets, while participating in some upside potential through retained royalties.
"We look forward to building the company based on the changes we have implemented to date," Johnson said.
"We have strengthened TAG in a way that will allow the company to benefit from the cashflow provided by Cheal and we have positioned TAG to have the ability to grow through a combination of production, exploration and new opportunities," he added.
Austral Pacific Energy operates the Cheal field, which is presently producing about 700 barrels per day, with a 69.5% interest, while TAG holds a 30.5% stake. The next development phase for Cheal, two additional A site wells, should boost production up to about 1500bpd.
Late last year, TAG announced it was selling some of its New Zealand interests and facilities, and considering potential mergers, farmouts, or new joint venture opportunities that met the company's lower tolerance for risk.
This followed a turbulent 2007 including a disappointing onshore Taranaki exploration program and the resignation of boss Drew Cadenhead who returned to his native Canada.
