Zargon Oil & Gas Ltd ZARFF

RE:Annualized CFPS of > $0.60 starting July

[pablo87]

And if I my add, one of the issues with Zargon is the very high cost sg&a and interest on a per bopd basis relative to larger peers.. A buyer would lose most of these costs so the cashflow #'s for them would be even better.

 They really need to sell or grow, the status quo w/rc to not drilling is not sustainable. Alberta plains already lost 20% of oil reserves and 20% of oil production in 2 years. So these sg&a and interest costs per daily barrel of oil (forget gas) are only going up. North Dakota otoh barely budged - its a great asset.

Also the drill ready page in context of the presentation statement of no drilling in 2018 is probably to boost up reserves esp alberta plains. Cash balances need to be shored up.

I predict some sort of transaction in 2018. Despite the high cashflow and NAV, there's going to be a discount for a&r and Little Bow. We'll do well, the buyer will too - will cut most of sg&a, replace debbies with cheaper bank debt, drill a few wells north and south of border, and if and when wcs drops, ruthlessly shut down little bow asp.

They could have done it themselves but at this point after another tough quarter and not much cash left, I think the BoD just wants to move on.

IMHO