Zargon Oil & Gas Ltd.

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
MM
Description

Zargon Oil & Gas Ltd. has retained Sayer Energy Advisors to sell 19 noncore oil and gas properties in Saskatchewan and Alberta.

Recent net production is approximately 370 barrels of oil equivalent per day (315 BO and gas liquids; 350,000 cubic feet of gas).

In Saskatchewan, Zargon is selling its oil producing properties at Pinto, Flat Lake, Ralph West, Weyburn, Stoughton, Moose Valley and Forgan, along with nonproducing properties at Prairie View and Eatonia. Net production is approximately 200 to 205 barrels of oil and 160,000 to 170,000 cubic feet per day of gas. Development and exploration potential exists targeting the Frobisher, Midale and Bakken formations.

In southern and central Alberta, Zargon is selling its oil properties at Chin Coulee, Long Coulee, Caroline and Modeste Creek (Pembina). Recent net production is approximately 95 to 100 barrels of oil and 55,000 to 60,000 cubic feet per day of gas. Development drilling opportunities exist at Chin Coulee and Belly River and Cardium upside potential at Modeste Creek (Pembina).

In northern Alberta, Zargon is selling its properties at Judy Creek, Ante Creek, McLean's Creek, Spirit River, Utikuma and Boundary Lake. Net production is approximately 15 to 20 barrels of oil and 120,000 to 130,000 cubic feet of gas per day. Development and exploration potential exists, most notably at Ante Creek where high-rate horizontal Montney oil wells may be drilled.

McDaniel & Associates Consultants Ltd. assigned the properties total proved plus probable reserves of approximately 1.66 million barrels of oil equivalent effective Dec. 31, 2009.

The bid due date is June 3. Contact Alan Tambosso, 403-266-6133, atambosso@sayeradvisors.com.