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Zargon Oil & Gas Ltd ZARFF

Zargon Oil & Gas Ltd is a producer of oil and gas. It is engaged in the exploration, development, and production of oil and natural gas in Canada and the United States. The company works on three phases of oil reservoir exploitation which include Primary recovery, Waterflood recovery, and Tertiary recovery. Its portfolio includes Alberta plains north, Alberta plains south and Williston basin projects.


GREY:ZARFF - Post by User

Comment by Cardboard1on Jan 15, 2019 12:02pm
80 Views
Post# 29233939

RE:Look forward to updated presentation

RE:Look forward to updated presentationProblem with these fellows that I suspect is the size of decommissioning liabilities.

If you consider this as debt, then valuation moves from sub $10,000 per flowing to around $41,000. At that price there are a myriad of better companies than this right now. That is after doing the same math for these other players or adding this to their EV.

This is not standard calculation in the industry but, I do it nowadays to ensure that I don't get screwed.

However, it is still cheap considering very low decline rate. We need higher oil prices and new investors to come to Canadian energy. Even the better companies are still being given away right now and can't get any respect.

Cardboard
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