Zargon Oil & Gas Ltd ZARFF

RE:RE:RE:New Zargon director

[pablo87]

Cardboard, if as you say the market is near completely frozen, then the asset you keep is North Dakota as its generating cashflow, has room to grow and I suspect, has minimal necessary SG&A associated with it. It will retain its value - sooner or later, we'll get C$30M for it (minimal decline - it might have 20 years of actual reserves if one assumes some upwards revisions) and meanwhile, we'll have received dividends from cashflow perhaps.

And you sell the Cdn operations for whatever you can get. I guesstimate the annual costs incl. all of SG&A at $25M so $1M underwater compared to estimated revenue but if you can cut costs by 10%... The LMR is terrible but recall that Altura sold 560 bpd in the spring for $28M (double the field netback though), Zar would be selling 1168 bpd so perhaps $15M which could be a good deal for a buyer with a higher LMR. Even $10M is 2 cents a share. At this stage, I'll take it as long as 85% of the SG&A goes with it!!!

Long story short, you are right, they need to figure out a way to cut costs and if they can't, find someone who can!!!

GLTA