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Oil Exploitation

Zargon's core business is the exploitation (increasing recovery factors) of existing oil reservoirs through enhanced recovery methods, development drilling or production optimizations. We focus on smaller and technically complex, but very profitable oil exploitation projects that tend to be overlooked by our larger competitors. In particular, we are excited about the Little Bow Alkaline Surfactant Polymer ("ASP") tertiary recovery project. Click here to view our ASP presentation.

Oil Production Weighting

Since Q4 2007, Zargon has been focused on oil weighted acquisitions and exploitation projects and has successfully increased its oil production weighting from 42 percent to 62 percent as reported in Q1 2012 (6:1 equivalency). This trend is expected to continue in 2012.

Zargon's Dividend Policy

Zargon is committed to deliver a steady, but supportable dividend. Dividend payout levels are ultimately targeted to be 35% of cash flow and should not exceed 50% of cash flow for an extended period of time.


   By retaining at least 50% of our cash flow for capital programs, we can efficiently develop long term oil exploitation projects at the Little Bow, Hamilton Lake, Killam, Taber and Williston Basin properties that have been partially de-risked and clearly justify significant additional capital.


   Consistent with this dividend policy, Zargon reduced the October 2011 monthly dividend to $0.10 per common share. At this new level and at current prices we have the resources to maintain our dividend and fund our ongoing oil exploitation programs.

 


PERFORMANCE AND STABILITY

 

ZARGON Q1 2012 RESULTS

Oil Production 5,496 barrels per day
(62% of production)
Gas Production 20.03 million cubic feet per day
Total Production
(6:1)
8,834 barrels of oil equivalent per day
Net Debt $124.3 million
(March 31, 2012)

 


Soon you will see a completely new Zargon website. We are in the process of redesigning the site so it may be our main portal of communication, whereby, you will find updated operational activity, current presentations, information regarding the technical aspects of our business and our required financial and operational reporting.

Please look for our new site in May 2012.

 

PRESIDENT'S LETTER

In a message to our shareholders, Zargon's President & CEO, Craig Hansen, discusses our 2011 performance and the strategy for the year ahead. To view a copy of the President's Letter, please click here.

2012 FIRST QUARTER RESULTS

On May 15, 2012, Zargon announced the 2012 First Quarter Results.

Click here to view the 2012 First Quarter Report.

 

Click here to veiw the May 14, 2012 Corporate Presentation.

 

2012 Key Reporting Dates

(PDF 31 KB)

 

Dividends
Prices delayed at least 15 minutes.
Source: TSX Inc. Disclaimer

Current dividend amount
$0.10 per common share

Date payable
June 15, 2012

Ex-dividend date
May 29, 2012

Record date
May 31, 2012