GREY:ZARFF - Post by User
Post by
PetroExploreron Dec 01, 2018 4:46pm
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Post# 29049914
All Eyes on Edmonton
All Eyes on EdmontonGovernment regulated oil production cuts, expected to be announced on Sunday. This is required to help rebalance the market, after the recent WCS price crash, caused by over-production.
https://calgaryherald.com/opinion/columnists/notley-one-of-the-toughest-decisions-we-will-make-as-a-province
This should succeed in driving the price back up, which would give Zargon the lifeline they require, to be able to produce with positive cashflow. They might be able to keep limping along, and Debenture Holders could see future value in the Company's stock.
Otherwise, Zargon is a slowly drowning victim, with high electrical costs, sucking the life out of their poorer qualtiy assets. People are dreaming if they think Zargon can just sell a property, and pay off the Debentures, in this current low price envornment.