Zargon Oil & Gas Ltd. Announces Q4 2019 Production Volumes, Abandonment Activities in 2019 and Year End Reserves

CALGARY, Alberta, Jan. 29, 2020 (GLOBE NEWSWIRE) — Zargon Oil & Gas Ltd. (the “Company” or “Zargon”) announces fourth quarter 2019 production volumes, 2019 abandonment activities and 2019 year end reserves. Zargon intends to release its 2019 audited financial results on March 12, 2020, after market close.

2019 FOURTH QUARTER PRODUCTION VOLUMES:

Fourth quarter 2019 production averaged 1,746 barrels of oil equivalent per day, a two percent improvement from the third quarter 2019 rate of 1,715 barrels of oil equivalent per day and a two percent decline from the fourth quarter rate of 1,786 barrels of oil equivalent per day. The year over year slightly reduced volumes were primarily due to the suspension of discretionary oil exploitation capital programs and natural declines.

Fourth quarter 2019 oil and liquids production averaged 1,518 barrels per day, a two percent improvement from the third quarter 2019 rate of 1,489 barrels of oil and liquids per day and a four percent decline from the fourth quarter 2018 rate of 1,575 barrels of oil and liquids per day. Fourth quarter 2019 natural gas production averaged 1.37 million cubic feet per day, and compares to rates of 1.36 million cubic feet per day in the preceding quarter and 1.27 million cubic feet per day in the fourth quarter of 2018.

For calendar 2019, Zargon’s production averaged 1,764 barrels of oil equivalent per day, and was comprised of 1,530 barrels of oil and liquids per day and 1.41 million cubic feet per day of natural gas. Additional details regarding oil exploitation opportunities, reserves and corporate strategy are provided in our updated presentation and previous press releases that are located on our website at www.zargon.ca.

ABANDONMENT ACTIVITIES

Zargon was very active in reducing its asset retirement obligations in 2019, spending $2.78 million on abandonments and reclamations. With this program Zargon reduced its Canadian suspended well count by 16 percent during the year by effectively converting 52.1 net suspended wells into an abandoned or ultimately fully reclaimed category.

NEW AND REVISED RESERVES EVALUATION PRACTICES