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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... see more

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Zargon Oil & Gas Ltd > Value at $60 WTI is $1.58

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Post by sculpin2 on Nov 24, 2017 2:01pm

Value at $60 WTI is $1.58

So here is valuation at $60 WTI where the price of oil is climbing close to today according to the Company presentation. Field level cash flow would be $21.4mm which at a 4.5 multiple of this results in a per share valuation of $1.58. So what does the CEO do - he sells 130,000 of these shares at $0.42 - must need a tax loss really badly or we need a new CEO...

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Comment by nkbourbaki on Nov 24, 2017 4:05pm

This is what I mean. Based on what I read, it makes no sense at all for these guys to be liquidating -- not even waiting for an uptick. And I doubt it's a tax loss. Much happier to be in the debs here over the common, but even still it spooks me. Never been in this position before and I don't like it!

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Zargon Oil & Gas Ltd