Zargon Oil & Gas Ltd ZARFF

RE:Investors

[pablo87]

The SP and debentures are trading assuming a conversion because barring an asset sale, a refinancing or a dramatic increase in WCS, its a big question mark whether or not Zargon can make the March 31 debenture interest payment.  Personally, I'd refinance and buy back the debentures for 70 cents on the dollar but that's a peanut gallery comment as I have no idea whether that's feasible or not.

Keep in mind, conversion or not, the intrinsic enterprise value remains the same (and actually theoretically increases due to saving $3.3M per year in debenture interest payments). The only determination is how much the debentureholders get vis a vis shareholders. If you own both at the same % of the float, then you're covered one way or the other.