Zargon Oil & Gas Ltd ZARFF

ZAR's new Presentation with the 10 "drill-ready" locations

[stockfy]

ZAR is a typical tax loss candidate, so the stock has dropped and there is a huge disconnect between its current market cap and its upside potential. Thanks to the recent financing in USD, it has cash to drill some of its drill-ready locations, at least those in North Dakota. I guess it will drill those 2 drill-ready locations in North Dakota and will sell this great low-decline asset in 2019 with better WTI prices. So it will eliminate its recent loan in USD and keep the remaining cash to redeem some of the debentures. WTI must recover by early 2019. Oil price in North Dakota is based LSB stream, a significant premium to WCS crude, read the presentation, slide 7.

AECO has risen a lot while WCS is expected to rise by early 2019, so ZAR will receive for its Canadian oil and gas production much higher oil price than the current WCS.

Actually, ZAR has drill-ready oil-weighted locations both in North Dakota (2 locations) and in Alberta (8 locations), see new presentation:

https://zargon.ca/wp-content/uploads/2018/11/Zargon-Corporate-Presentation-November-13-2018-v4.pdf