PSH's North Dakota deal at US$100K/boepd and ZAR's ND assetsWCS has recovered lately and exceeded C$50 last Friday. With the OPEC and Notley's cuts, it will at least stabilize here or it will keep rising from here in early 2019. See the prices at psac.ca
Back in the first nine months of 2017, WCS was ranging at C$45 - C$49, so WCS has returned where it was in 2017 when ZAR was generating significant operating cash flow. Read ZAR's reports of 2017 filed on Sedar.
North Dakota does not face any bottlenecks issues, so ZAR sells its oil from its ND assets without problems at USD prices.
Thanks to these two facts about WCS and North Dakota oil prices,
ZAR can sell a couple of assets in 2019 (its North Dakota asset is one of them) and push its price significantly higher than 10 cents by December 2019 when the debentures will be converted into shares, according to the terms.
In this case, the debenture holders will receive much less shares than they will receive if they convert now at 10 cents. To get an idea about how much money ZAR can receive from its ND assets, see the recent ND deal from PSH.
Petroshale (PSH) acquired a few weeks ago light-oil weighted properties (1,900 net acres) in North Dakota with 550 boepd (light oil and liquids) for US$55 million, so it paid US$100,000 per boepd and US$6 per boe of Proved reserves.
The decline rate for PSH's acquired assets is 30% (!!!) in the first year and 20% (!!) in the second year.
See all these facts below:
https://globenewswire.com/news-release/2018/07/12/1536514/0/en/PetroShale-Announces-Strategic-Acquisition-40-Million-Bought-Deal-Financing-Concurrent-Private-Placement-and-Operations-Update.html
So ZAR can receive at least US$50,000 per boepd for its low-decline oily assets in North Dakota in 2019.
This means CAD$65,000 per boepd or CAD$26 million.
This sale alone in 2019 will push ZAR's stock significantly higher than 10 cents.