Zargon Oil & Gas Ltd. (TSX:ZAR) ("Zargon") confirms that the
monthly cash dividend for the month of March in the amount of Cdn.
$0.10 per common share will be paid on April 16, 2012 to
shareholders of record on March 31, 2012. The ex-dividend date is
March 28, 2012. The Board of Directors has also approved the
current dividend policy of $0.10 per common share per month for the
second quarter of 2012 based on the current economic conditions of
our business.
Our dividend policy is reviewed monthly and is based on a number
of factors including current and future commodity prices, foreign
exchange rates, our commodity hedging program, current operations,
financial and legal requirements and other conditions existing at
such future times. We will continue to carefully monitor the impact
of all these issues and adjust our monthly dividend as conditions
dictate.
Zargon's 2012 second quarter cash dividend to shareholders of
$0.10 per common share per month based on our 2012 guidance is as
follows:
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Dividend Dividend
Record Date Ex-Dividend Date Payment Date Per Share
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April 30, 2012 April 26, 2012 May 15, 2012 $ 0.10 (i)
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May 31, 2012 May 29, 2012 June 15, 2012 $ 0.10 (i)
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June 30, 2012 June 27, 2012 July 16, 2012 $ 0.10 (i)
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(i) The above reflects an anticipated dividend based on Zargon's
current projected commodity prices, commodity hedge positions and
production volumes. Dividends are subject to change should there be
a material change in expected cash flow for the respective
periods.
Unless otherwise indicated, all dividends paid by Zargon are
"eligible dividends" for Canadian tax purposes.
Zargon has a Dividend Reinvestment Plan (the "DRIP") which
allows eligible shareholders to reinvest their cash dividends in
additional common shares which, when issued from treasury, will be
issued at 95 percent of the "Average Market Price" (as defined in
the DRIP) on the applicable dividend payment date. A complete copy
of the DRIP is available on Zargon's website or by calling the
Account Manager for Zargon at Valiant Trust Company at (403)
233-2801 or (866) 313-1872.
Based in Calgary, Alberta, Zargon's securities trade on the
Toronto Stock Exchange and there are currently 29.438 million
common shares outstanding.
FORWARD-LOOKING STATEMENTS
This press release offers our assessment of Zargon's future
plans and operations as at March 15, 2012, and contains
forward-looking statements. All statements other than statements of
historical fact may be forward-looking statements. Such statements
are generally identified by the use of words such as "anticipate",
"continue", "estimate", "expect", "forecast", "may", "will",
"project", "should", "plan", "intend", "believe" and similar
expressions (including the negatives thereof). In particular, this
press release contains forward-looking statements pertaining to the
following:
-- our business plans and strategy;
-- projections of market prices and costs and the related sensitivities of
dividends;
-- supply and demand for oil and natural gas;
-- risk management strategy;
-- our dividend policy and payment of dividends;
-- the sources of funding of our dividends.
By their nature, forward-looking statements are subject to
numerous risks and uncertainties, some of which are beyond our
control, including such as 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
our website and at 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, 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, our ability to
obtain financing on acceptable terms; and our ability to add
production and reserves through our development and acquisition
activities 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. 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 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.
FURTHER INFORMATION
Zargon Oil & Gas Ltd. is a Calgary based oil and natural gas
company working in the Western Canadian and Williston sedimentary
basins that has delivered a long history of returns, dividends
(distributions) and value creation. Zargon's business is focused on
oil exploitation projects where we employ a careful reservoir
engineering inspired technical approach to profitably increase oil
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.
Contacts: Zargon Oil & Gas Ltd. C.H. Hansen President and
Chief Executive Officer 403-264-9992 or Toll Free:
1-855-464-9992zargon@zargon.ca J.B. Dranchuk Vice President,
Finance and Chief Financial Officer 403-264-9992 or Toll Free:
1-855-464-9992zargon@zargon.ca www.zargon.ca