Zargon Oil & Gas Ltd ZARFF

RE:RE:RE:RE:RE:Debenture holders will get stock either way

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For debentureholders (I am) to try to squeeze everything out is gaining 6.6% or going from 93.8% to 100% ownership and this theoritical calculation means waiting until December 31, 2019 and even then the shares would trade at some value.

A conversion into shares will happen no matter what per the announcement and they have the right to do so per the indenture. And no receivership possibility here as there is no one to call for it (no bank loan and new loan is relatively small).

Question is just timing and since time is money and market hate uncertainty, the key is to solve this asap. Increase production back to 2,500 boe/d as one poster mentioned, take advantage of nice spikes in nat gas if they come, pay that expensive 11% debt asap. Maybe sell that U.S. property for a proper price now that there is no financial duress.

To block this and push for more means a delay. May not be worthwhile at all to just gain a few percent ownership and again more costs (management circulars, lawyers, advisors) and what opportunity is lost in the meantime?

It will be up to the big guys to decide whom may already have had discussions with Hansen about their expectations for conversion price.

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