Zargon Oil & Gas Ltd ZARFF

RE:Results and new presentation out

[pablo87]

Observations:

- North Dakota continues to deliver: prodn was 420 bbl/d in Q1. Drilling locations increased to 19+ (5 McDaniel, 14 unbooked from 16...
 
- the attempt to sell the Edmonton West asset seems to have failed - no longer on website and not in presentation either.

- they have advanced 10 locations (8 alberta, 2 ND) to "drill ready" - this is positive from an asset valuation point of view. The 8 Cdn locations could represent 1.5 years of conventional oil reserves (historially Mcdaniel is conservative on qty of reserves and optimistic on the price IMO).

- Obviously no money to effect a share or a debenture buyback. Or drill. they did consume $5M in the past year...Seems like they should have kept a bit more cash when debentures were extended.

- Disappointed that they did not change the VP comp. plan - some of the VP's have been selling their treasury issued stock for months now.

- calculating the NAV at $2.69 based on buying out the debentures? Not doubting it but they didn't do that before...does it mean they could sell a major asset and buy back the debentures?

- not that it matters but the natural gas price seems unrealistic. Hopefully not working any of these over like at all. Eventually gas will recover and the shut in ones can be brought back (they can all be shut in for all I care).

GLTA