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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 1:47pm
82 Views
Post# 29234833

RE:RE:RE:Look forward to updated presentation

RE:RE:RE:Look forward to updated presentation"All companies have that issue. Cardinal likely trading at $100,000 per flowing barrel with decommissioning liabilities... or Crescent point..."

Yes, they all have decommissioning liabilities but, you are completely wrong on per flowing impact.

Cardinal per flowing is $27,000 per boe and $33,000 accounting for these liabilities in full while Crescent Point is $40,000 per boe and $47,000.

It is certainly something that a potential acquirer takes into consideration. It will have to be paid over time so it reduces free cash flow each year.
 
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