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Zargon Oil & Gas Ltd ZARFF

Zargon Oil & Gas Ltd is a producer of oil and gas. It is engaged in the exploration, development, and production of oil and natural gas in Canada and the United States. The company works on three phases of oil reservoir exploitation which include Primary recovery, Waterflood recovery, and Tertiary recovery. Its portfolio includes Alberta plains north, Alberta plains south and Williston basin projects.


GREY:ZARFF - Post by User

Post by stockfyon Oct 28, 2017 3:52am
193 Views
Post# 26871299

SGY pays CAD$48K/boepd and CAD$9/boe (API 29, 15% decline)

SGY pays CAD$48K/boepd and CAD$9/boe (API 29, 15% decline) ZAR wants to sell the North Dakota asset. It's an excellent, operated, low decline asset of 372 bopd under waterflood with 100% medium oil (API 27), see presentation:

https://zargon.ca/wp-content/uploads/2017/08/Zargon-Corporate-Presentation-august-9-2017-rev-6-1.pdf


Many deals have taken place in North Dakota in the last twelve months. 
Some of the sellers had weak balance sheets so they didn't have any negotiating power. Nevertheless, all these oil-weighted properties were sold at or ABOVE CAD$45,000 per boepd.

WLL sold for CAD$80,000 per boepd.

HK sold for CAD$62,000 per boepd.

HES sold for CAD$96,000 per boepd.

DNR paid CAD$46,000 per boepd although the Salt Creek Field in Wyoming asset was NON-OPERATED.

In April, Surge (SGY) announced that it paid CAD$49,600 per boepd and CAD$8.40 per boe of 2P reserves for 745 boepd (97% medium oil, 29 API) with annual decline of 12% in Central Alberta:

https://www.newswire.ca/news-releases/surge-energy-inc-announces-37-million-core-sparky-area-acquisition-upward-revision-to-2017-guidance-increased-dividend-619814893.html


Yesterday, Surge (SGY) announced it paid CAD$48,000 per boepd and CAD$9 per boe of 2P reserves for 780 boepd (95% medium oil, 29 API) with annual decline of 15% in Central Alberta:

https://www.marketwired.com/press-release/surge-energy-inc-announces-372-million-sparky-core-area-acquisition-40-million-convertible-tsx-sgy-2238598.htm

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