CALGARY, ALBERTA – Zargon Oil & Gas Ltd. (the “Company” or “Zargon”) has entered into a definitive agreement for the sale of all of its Southeast Saskatchewan assets for cash consideration of $89.5 million, subject to normal closing adjustments. The effective date of the transaction is July 1, 2016 and the transaction is expected to close in early September. The assets have the following attributes:
-Production: 1,211 barrels of oil equivalent per day of low decline production – 95 percent oil and liquids (first half 2016 rates).
-Proven plus probable reserves: 5.14 million barrels of oil equivalent – 96 percent oil and liquids (McDaniel & Associates Consultants Ltd. – Dec. 31, 2015).
The proceeds of the transaction will initially be used to eliminate Zargon’s bank debt.
Read More (source): http://zargon.ca/news/