Zargon Oil & Gas Ltd ZARFF

PSH's North Dakota deal at US$100K/boepd and ZAR's ND assets

[stockfy]

WCS has recovered lately and exceeded C$50 last Friday. With the OPEC and Notley's cuts, it will at least stabilize here or it will keep rising from here in early 2019. See the prices at psac.ca

Back in the first nine months of 2017, WCS was ranging at C$45 - C$49, so WCS has returned where it was in 2017 when ZAR was generating significant operating cash flow. Read ZAR's reports of 2017 filed on Sedar.

North Dakota does not face any bottlenecks issues, so ZAR sells its oil from its ND assets without problems at USD prices.

Thanks to these two facts about WCS and North Dakota oil prices, ZAR can sell a couple of assets in 2019 (its North Dakota asset is one of them) and push its price significantly higher than 10 cents by December 2019 when the debentures will be converted into shares, according to the terms. In this case, the debenture holders will receive much less shares than they will receive if they convert now at 10 cents.

To get an idea about how much money ZAR can receive from its ND assets, see the recent ND deal from PSH.

Petroshale (PSH) acquired a few weeks ago light-oil weighted properties (1,900 net acres) in North Dakota with 550 boepd (light oil and liquids) for US$55 million, so it paid US$100,000 per boepd and US$6 per boe of Proved reserves.

 

The decline rate for PSH's acquired assets is 30% (!!!) in the first year and 20% (!!) in the second year.

See all these facts below:
 

https://globenewswire.com/news-release/2018/07/12/1536514/0/en/PetroShale-Announces-Strategic-Acquisition-40-Million-Bought-Deal-Financing-Concurrent-Private-Placement-and-Operations-Update.html

 

So ZAR can receive at least US$50,000 per boepd for its low-decline oily assets in North Dakota in 2019.

 

This means CAD$65,000 per boepd or CAD$26 million.

This sale alone in 2019 will push ZAR's stock significantly higher than 10 cents.

 

[PetroExplorer]

False, false, false: this is just hopeful speculation.  If they could get a nice price for the US assets, that would be great, but reality is they are probably just mediocre assets, with limited potential, otherwise we would be seeing a higher share price. These PSH assets, involve significant drilling potential: Zargon's North Dakota assets, don't have many locations.  But

[rad10]

Thanks for dispelling the myths PE.  This poster is hilarious. FACT - Q4 production will be diminished significantly FACT - debentures are widely held and management has only canvassed a relatively small minority of them. Around 30% to be more precise. FACT - there is only 3.5 million U$ of secured debt ahead of the debs. Hopefully we can get a PIK in shares in lieu of the March interest

[stockfy]

I just wasted 2 more seconds of my life reading another EMPTY WORDS comment from the usual suspect of this board, rad10. 

[stockfy]

A couple of new posters showed up to this board suddenly.....Zero presence before. They ignore two facts that have brought ZAR at 4 cents alleging that ZAR will stay at 4-5 cents until December 2019: WCS crash in October and November Tax loss selling. None of these reasons will exist in January. Actually, WCS has significantly recovered lately. And the North Dakota deal could push ZAR

[funfacts2018]

Lets clear up a couple of things.  WCS is a heavy grade of crude, priced at Hardisty Alberta.  Zargon is not a heavy oil producer, so WCS has exactly nothing to do with the price Zargon receives for its production. WTI is a light, sweet grade of crude. priced at Cushing Oklahoma.  WTI price, less transportation cost from Alberta to Cushing, is more representative of the price

[funfacts2018]

stockfly I have to guess that you calculated this incorrectly: " So ZAR can receive at least US$50,000 per boepd for its low-decline oily assets in North Dakota in 2019.   This means CAD$65,000 per boepd or CAD$26 million. This sale alone in 2019 will push ZAR's stock significantly higher than 10 cents" By my math, after accounting for additional shares

[rad10]

This troll has been quite fanciful in his estimates and statements over several weeks funfacts.  I hate to think how much he has lost either personally or on behalf of clients.  He exclusively posts on companies that have been battered with the oil downturn.  Engaging in respectful considered and fact based opinion is not productive in my experience.  Thanks for helping set the

[stockfy]

funfacts2018, you are absolutely wrong. Read it carefully next time. My calculation and ZAR's rise ABOVE 10 cents proforma a North Dakota deal  does NOT take into account the debenture conversion. My calculation has been based on today's number of outstanding common shares.  rad10, you keep bringing zero value to the table. What a troll you are. Zero facts, zero numbers. Just

[Bonecreek2]

BLOW IT OUT YOUR @SS

[funfacts2018]

While it may have been presumptuious to make that assumption: 1) I have reviewed news from Zargon's webpage and see nothing concerning an impending deal of that nature. 2) The meeting of debenture holders to approve/disapprove the conversion is set for January 10. 3) The chance of an entirely new deal being delivered before Jamuary 10 seems to me be slim and none.  4) If there was a