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Zargon Oil & Gas Ltd. (ZAR.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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0.04500.0000 (0.00%)
At close: 3:59PM EDT
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Previous Close0.0450
Open0.0500
Bid0.0400 x 0
Ask0.0450 x 0
Day's Range0.0400 - 0.0500
52 Week Range0.0400 - 0.3600
Volume88,197
Avg. Volume40,738
Market Cap1.035M
Beta (5Y Monthly)3.42
PE Ratio (TTM)N/A
EPS (TTM)-1.5550
Earnings DateMar. 13, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateOct. 28, 2015
1y Target EstN/A
  • CNW Group

    IIROC Trading Halt - ZAR

    TORONTO, Sept. 8, 2020 /CNW/ - The following issues have been halted by IIROC: Company: Zargon Oil & Gas Ltd.

  • GlobeNewswire

    Zargon Oil & Gas Ltd. Announces Notice of Intention to Make a Proposal to Its Creditors

    CALGARY, Alberta, Sept. 08, 2020 (GLOBE NEWSWIRE) -- Zargon Oil & Gas Ltd. (the "Company" or "Zargon") announces that its board of directors has authorized the Company to file a Notice of Intention to Make a Proposal ("Notice of Intention") to its creditors under the provisions of Part III, Division I of the Bankruptcy and Insolvency Act (Canada) (the "BIA"). Pursuant to the Notice of Intention, MNP Ltd. ("MNP") has been appointed as the trustee in the Company's proposal proceedings and will assist the Company in its restructuring efforts. The decision to file the Notice of Intention was made by the board of directors of the Company after extensively exploring restructuring and refinancing alternatives. While under BIA protection, the Company will continue with its efforts to pursue strategic alternatives, including restructuring its existing debt obligations.A Notice of Intention is the first stage of a restructuring process under the BIA, which permits the Company to pursue a restructuring of its financial affairs, through a formal proposal process. The filing of the Notice of Intention will have the effect of imposing an automatic stay of proceedings ("Stay") that will protect the Company and its assets from the claims of creditors while the Company pursues this objective. The initial Stay period of 30 days can be extended by court order, during which time the Company will assess its ability to present a viable proposal to its creditors.The Company is currently actively engaged in discussions with an arm's length third party in connection with a potential restructuring of the Company. Current discussions are focused on obtaining additional financing necessary to provide the Company with increased liquidity and its creditors with a better outcome than the alternatives currently available. There can be no assurance that the current process will result in a transaction or, if a transaction is undertaken, that it will be successfully concluded in a timely manner or at all.All inquiries regarding the Notice of Intention should be directed to MNP, via e-mail at: rick.anderson@mnp.ca or telephone: (403) 850‑6487.The Company has also accepted the resignation of all of its directors effective on the filing of the Notice of Intention, other than Mr. Craig Hansen who will continue as the Company's President and Chief Executive Officer and a director. During the period of protection granted by the Notice of Intention, the Company will be continuing normal operations.The Toronto Stock Exchange ("TSX") has advised that trading in the common shares of the Company will be suspended. The TSX will also put the Company under delisting review with respect to meeting the continued listing requirements in accordance with the expedited review process. There is no certainty as to timing or likelihood that the common shares will recommence trading on the TSX.FORWARD-LOOKING STATEMENTSCertain information set out in this news release contains forward-looking statements. Forward-looking statements are statements that are predictive in nature, depend upon or refer to future events or conditions and may include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates" or similar expressions. In particular, forward-looking statements contained in this news release include, but are not limited to, statements with respect to a potential restructuring of the Company and the trading of the common shares on the TSX.Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward -looking statements. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.For further information please contact:C.H. Hansen President and Chief Executive OfficerZargon Oil & Gas Ltd. Telephone: 403-264-9992 E-mail: zargon@zargon.ca Website: www.zargon.ca

  • GlobeNewswire

    TSX Symbol: ZAR - Zargon Oil & Gas Ltd. Provides 2020 Second Quarter Results

    CALGARY, Alberta, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Zargon Oil & Gas Ltd. (“Zargon” or the “Company”) (TSX:ZAR) has released its 2020 second quarter financial results. Highlights from the second quarter ended Jun. 30, 2020 are provided below: FINANCIAL AND OPERATING HIGHLIGHTS (THREE MONTHS ENDED JUNE 30, 2020) * The Company may be required to seek formal creditor protection in the very near term. There is material uncertainty surrounding the Company’s ability to continue as a going concern that creates significant doubt as to the ability of the Company to meet its obligations as they come due. Therefore, the Company may be unable to realize it assets and discharge its liabilities in the normal course of business. * On April 2, 2020, Zargon Oil & Gas Ltd. (“Zargon” or the “Company”) announced that it had entered into an agreement to settle its $3.05 million (USD) term debt through the sale of its US subsidiaries for nominal proceeds and the release of the Company from its obligations under the loan agreement. The gain from the sale was $3.42 million. * Funds flow from operating activities was a negative $1.88 million, compared to a negative $1.24 million recorded in the prior quarter. The decrease from the prior quarter was primarily due to lower production volumes and lower commodity prices. * Second quarter 2020 production averaged 504 barrels of oil equivalent per day (382 barrels of oil per day and 0.74 million cubic feet of natural gas per day), a 70 percent decrease from the preceding quarter production rate of 1,706 barrels of oil equivalent per day. The reduction in production volumes from the prior quarter was primarily due to the sale of Willison Basin USA property and the shut in of Alberta operated properties in April, 2020 when Zargon shut in all producing Alberta operated properties as realized field oil prices declined to levels significantly below the variable costs of production. In July 2020, Zargon reactivated two Little Bow producers with a combined production of 120 barrels of oil equivalent per day. The timing of the reactivation of Zargon’s remaining Alberta properties will depend on Zargon’s ability to source, through refinancing and restructuring initiatives, sufficient working capital to fund the property restart operations including funding for electricity and other services. * Second quarter 2020 field oil prices averaged $8.16 per barrel, 77 percent lower than the prior quarter price of $35.31 per barrel. The combination of lower oil prices and oil volumes resulted in a 92 percent reduction in second quarter 2020 revenues to $0.40 million, down from $4.89 million in the prior quarter. The corresponding second quarter 2020 field operating cash flow of a negative $1.57 million, which compares with the prior quarter’s a negative $0.39 million. * Second quarter 2020 field operating netbacks defined as sales (excluding hedges) less royalties and operating/transportation costs were a negative $34.14 per barrel of oil equivalent a significant decrease from the prior quarter field operating netback of a negative $2.52 per barrel of oil equivalent. * Second quarter 2020 capital expenditures were $0.20 million, compared to the $0.45 million recorded in the prior quarter. During the 2020 second quarter, Zargon’s capital program was primarily allocated to mineral and surface lease rentals. Consistent with the last few years, Zargon did not drill any of its proven undeveloped locations (Taber and Bellshill Lake) in the quarter. * At June 30, 2020, the Company’s combined debt net of working capital was $3.85 million, which compared to $4.89 million reported in the prior quarter. The improvement in net debt resulted from the settlement of the debt through the sale of its US subsidiaries. * Zargon’s second quarter 2020 financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. These statements have not been reviewed by the Company’s auditors.  Three Months Ended June 30, 2020   Six Months Ended June 30, 2020   2020 2019 Percent Change  2020 2019 Percent Change  Financial Highlights        Income and Investments ($ millions)        Gross petroleum and natural gas sales  0.40 9.17 (96) 5.29 17.48 (70) Funds flow from operating activities  (1.88)2.17 (187)   (3.11)3.39 (192) Cash flows from operating activities  (1.08)2.79 (139) (1.13)1.85 (161) Free cash flow  (2.32)0.91 (355) (4.45)1.15 (487) Net earnings/(loss)  0.73 (0.57)228  (33.79)24.51 (238)          Net capital expenditures  0.20 0.79 (75) 0.65 1.54 (58) Abandonment and reclamation costs  0.24 0.47 (48) 0.69 0.70 (1)          Per Share, Basic        Funds flow from operating activities ($/share)  (0.08  )0.09 (189)   (0.14)0.16 (188) Free Cash Flow  (0.05)0.12 (142)   (0.05)0.09 (156) Net earnings/(loss) ($/share)  0.03 (0.02)250    (1.47)(1.13)(230)          Balance Sheet at Period End ($ millions)        Property and equipment (D&P)    47.34 96.77 (51) Total assets    49.94 105.73 (53) Working capital    (3.85)3.36 (215) Convertible debentures at maturity    – –    –  Shareholders’ equity    11.86 28.62 (141)          Weighted Average Shares Outstanding for the Period (millions) – Basic22.99 22.99 –  22.99 21.69 6  Weighted Average Shares Outstanding for the Period (millions) – Diluted22.99 22.99 –  22.99 21.69 6  Total Common Shares Outstanding at Period End (millions)    22.99 22.99 –  Funds flow from operating activities is an additional GAAP measure presented on the consolidated statement of cash flows, it  represents cash flow from operating activities adjusted for asset retirement expenditures and changes in non-cash operating working capital. Working capital excludes derivative assets/liabilities and term debt. The debt was settled through the sale of its US subsidiaries on April 1, 2020.  Three Months Ended June 30, 2020   Six Months Ended June 30, 2020    2020 2019 Percent Change  2020 2019 Percent Change  Operating Highlights        Average Daily Production        Oil and liquids (bbl/d)382 1,539 (75) 904 1,557 (42) Natural gas (mmcf/d)0.74 1.51 (51) 1.20 1.45 (17) Equivalent (boe/d)504 1,790 (72) 1,105 1,799 (39)          Average Selling Price (before the impact of financial risk management contracts)        Oil and liquids ($/bbl)8.16 64.51 (87) 29.58 60.50 (51) Natural gas ($/mcf)1.67 1.04 61  1.90 1.63 17           Netback ($/boe)        Gross petroleum and natural gas sales8.61 56.33 (85) 26.29 53.68 (51) Royalties(1.04)(7.73)(87) (3.23)(6.66)(52) Other income2.62 – 100  0.60 – 100  Operating expenses  (40.66)(28.12)45  (32.00)(29.46)9  Transportation expenses  (1.05)(0.66)59    (0.79)(0.65)22  Operating netback  (31.52)19.82 (259)  (9.13)16.91 (154)          Wells Drilled, Net– – –  – – –           Undeveloped Land at Period End (thousand net acres)    25 33 (24) The calculation of barrels of oil equivalent (“boe”) is based on the conversion ratio that six thousand cubic feet of natural gas is equivalent to one barrel of oil.Forward-Looking Statements This press release offers our assessment of Zargon’s future plans and operations as at August 13, 2020, and contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "anticipate”, “continue”, “estimate”, “expect”, “forecast”, “may”, “will”, “project”, “should”, “plan”, “intend”, “believe” and similar expressions (including the negatives thereof)  are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to our strategic alternatives process under the heading “Strategic Alternatives Process”. In addition, all statements relating to reserves, including ASP reserves, in this press release are deemed to be forward-looking as they involve an implied assessment, based on certain assumptions and estimates, that the reserves described, can be properly produced in the future.The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: those relating to results of operations and financial condition; general economic conditions; industry conditions; changes in regulatory and taxation regimes; volatility of commodity prices; escalation of operating and capital costs; currency fluctuations; the availability of services; imprecision of reserve estimates; geological, technical, drilling and processing problems; environmental risks; weather; the lack of availability of qualified personnel or management; stock market volatility; the ability to access sufficient capital from internal and external sources; and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel. Risks are described in more detail in our Annual Information Form, which is available on www.zargon.ca and on www.sedar.com. Forward-looking statements are provided to allow investors to have a greater understanding of our business.You are cautioned that the assumptions used in the preparation of such information and statements, including, among other things: future oil and natural gas prices; future capital expenditure levels; future production levels; future exchange rates; the cost of developing and expanding our assets; our ability to obtain equipment in a timely manner to carry out development activities; our ability to market our oil and natural gas successfully to current and new customers; the impact of increasing competition; the availability of adequate and acceptable debt and equity financing and funds from operations to fund our planned expenditures; and our ability to add production and reserves through our development and acquisition activities, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Our actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. We can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits we will derive from them. The forward-looking information and statements contained in this document is expressly qualified by this cautionary statement. Our policy for updating forward-looking statements is that Zargon disclaims, except as required by law, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Additional GAAP and Non-GAAP Financial MeasuresZargon uses the following terms for measurement within this press release that do not have a standardized prescribed meaning under Canadian generally accepted accounting principles (“GAAP”) and these measurements may not be comparable with the calculation of similar measurements of other entities.The terms “funds flow from operating activities” and “operating netback per boe” in this press release are not recognized measures under GAAP. Management of Zargon believes that in addition to net earnings and cash flows from operating activities as defined by GAAP, these terms are useful supplemental measures to evaluate operating performance and assess leverage. Users are cautioned; however, that these measures should not be construed as an alternative to net earnings or cash flows from operating activities determined in accordance with GAAP as an indication of Zargon’s performance.Zargon considers funds flow from operating activities to be an important measure of Zargon’s ability to generate the funds necessary to finance capital expenditures and repay debt. All references to funds flow from operating activities throughout this press release are based on cash provided by operating activities before the change in non-cash working capital since Zargon believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and, as such, may not be useful for evaluating Zargon’s operating performance. Zargon’s method of calculating funds flow from operating activities may differ from that of other companies and, accordingly, may not be comparable to measures used by other companies. Funds flow from operating activities per basic share is calculated using the same weighted average basic shares outstanding as is used in calculating earnings per basic share. See Zargon’s Management’s Discussion and Analysis (“MD&A”) as filed on www.zargon.ca and on www.sedar.com for the periods ended June 30, 2020 and 2019 for a discussion of cash flows from operating activities and funds flow from operating activities.51-101 AdvisoryIn conformity with National Instrument 51-101, Standards for Disclosure of Oil and Gas Activities (“NI 51-101”), natural gas volumes have been converted to barrels of oil equivalent (“boe”) using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil. In certain circumstances, natural gas liquid volumes have been converted to a thousand cubic feet equivalent (“mcfe”) on the basis of one barrel of natural gas liquids to six thousand cubic feet of gas. Boes and mcfes may be misleading, particularly if used in isolation. A conversion ratio of one barrel to six thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion ratio on a 6:1 basis may be misleading as an indication of value.FilingsZargon has filed with Canadian securities regulatory authorities its unaudited financial statements for the three and six months ended June 30, 2020 and the accompanying MD&A. These filings are available on www.zargon.ca and under Zargon’s SEDAR profile on www.sedar.com.About ZargonZargon is a Calgary-based oil and natural gas company working in the Western Canadian and is focused on oil exploitation projects (water floods and tertiary ASP) that profitably increase oil production and recovery factors from existing oil reservoirs.In order to learn more about Zargon, we encourage you to visit Zargon's website at www.zargon.ca where you will find a current shareholder presentation, financial reports and historical news releases.For further information please contact:C.H. Hansen President and Chief Executive OfficerZargon Oil & Gas Ltd. Telephone: 403-264-9992 E-mail: zargon@zargon.ca Website: www.zargon.ca