Zargon Oil & Gas Ltd T.ZAR

Another 13 cents/share

[not4anymore]

From sculpin2 at IV. Thanks

Re: Zargon Oil - LMR: corporate sell exempt

Zargon sold an additional asset last week (was not press released). Note they got $4mm for this and the LMR was below 2 at 1.58... 


Altura Energy to buy Alberta oil assets for $4M 
2016-08-26 07:53 ET - News Release  
Shares issued 108,920,944 
ATU Close 2016-08-25 C$ 0.265 
Mr. David Burghardt reports 

ALTURA ENERGY INC. ANNOUNCES ACQUISITION OF STRATEGIC HIGH QUALITY LOW DECLINE OIL ASSETS IN EAST CENTRAL ALBERTA 

Altura Energy Inc. has entered into an agreement to purchase high-quality oil assets strategically located in east-central Alberta for cash consideration of $4.0-million, subject to customary closing adjustments. The assets add 125 barrels of oil equivalent per day of low-decline production and include facility infrastructure and a natural gas pipeline for future growth. The acquisition is effective Aug. 1, 2016, and is expected to close by Sept. 21, 2016.  
The acquisition is consistent with Altura's return on capital strategy focused on acquiring under developed assets targeting the shallow, low-cost, multizone, medium-oil-weighted section of the Upper Mannville. The assets include 125 boe/d (55 per cent oil and liquids) of 28-degree API oil from the Upper Mannville formation and 7.3 net sections of land concentrated in the Killam area of Alberta, approximately 40 miles west of Wainwright, Alta. The assets are 100 per cent operated and have a low base production decline estimated at 10 per cent per year from a high-quality sandstone reservoir. Management has identified 12 Upper Mannville horizontal drilling locations based on current approved well spacing. In addition to the drilling inventory there is potential to improve oil recovery by expanding the pilot water flood throughout other prospective areas in the field. 
The acquisition has a licensee management rating (LMR) of 1.58. Upon closing the acquisition, the corporation will have an LMR of 3.85.