Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ZARGON OIL & GAS LTD. We currently have 26 research reports from 1 professional analysts.
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ZARGON OIL & GAS LTD
ZARGON OIL & GAS LTD
30 Sep 16
Due to a reallocation of resources, we are discontinuing coverage of Zargon Oil & Gas with a Market Perform ranking and $0.75 per share 12-month target price (last effective date - August 16, 2016). Zargon remains in a strategic alternatives process, which has thus far resulted in the disposition of the Company’s Southeast Saskatchewan assets for proceeds of $86.8 mm and Killam, AB assets for proceeds of $4.0 mm. Combined production from these disposed assets was ~1,340 boe/d (91% oil and NGLs). Pro-forma the dispositions, Zargon retains a low-decline production base of ~2,600 boe/d (83% oil and NGLs) from its remaining properties in Alberta and North Dakota.
Second Quarter Results
15 Aug 16
Zargon‘s second quarter results were slightly behind on production while ahead on cash flow, although largely irrelevant in the context of the sale of the Company’s southeast Saskatchewan assets subsequent to quarter-end along with the ongoing strategic alternatives process. Recall at the end of July, Zargon announced the sale of its Southeast Saskatchewan assets for gross proceeds of $89.5 mm in what was the first transaction executed since initiating its strategic alternatives process. Management noted no changes to proforma guidance announced with the aforementioned sale, and expects to be in a position to provide further clarity on guidance upon closing of the sale in early September. We maintain our $0.75 per share target price and Market Perform ranking coming off of the second quarter release.
Announces Sale of Southeast Saskatchewan Assets
27 Jul 16
Zargon announced the sale of its Southeast Saskatchewan assets in what is the first transaction executed since initiating its strategic alternatives process. We view the transaction positively as the disposition was done at highly accretive metrics, and significantly reduces the Company’s outstanding debt position providing increased financial flexibility as the Company continues to work through its strategic alternatives process. Management provided an updated capital expenditure program for 2H16e and 2017e that will continue to see limited investment absent of a recovery in the commodity price complex. Updating our estimates for the asset sale, we have increased our target price to $0.75 per share while maintaining our Market Perform ranking.
2Q16e Quarterly Preview
26 Jul 16
Some Recovery on Segmented Cash Flow Generation Over Q1 Though Still Down 56% Y/Y. In aggregate, the Intermediate, Mid, and Small Cap groups are expected to generate 2Q16e cash flow of $1,281 mm, $183 mm, and $53 mm, or $1.517 billion in total, that while depressed relative to the same period last year (~$2.647 billion combined), is up 17% sequentially from the prior quarter, largely on the strength of crude oil price recovery in the period. Severely weak natural gas pricing picture markedly reversed into summer, market likely to ignore financials for natural gas producers and look ahead to winter and formalization of sell-side 2018e estimates in coming months. Spot AECO natural gas prices recently crested C$2.60/mcf, and with a reasonable alignment of previously distressed NE BC Stn2 differentials, augmented by a withdrawal expected next week, view the market psyche as constructive and looking ahead, with the analogy that this market is shaping up to mirror 2012 still holding. That said, with crude oil poised to retest support levels, combined with strong stock price performance broadly observed YTD, we would characterize sentiment as slightly pessimistic in the near-term which could reduce or unwind momentum-based investment strategies that have worked thus far in 2016.
ANNOUNCES SALE OF SOUTHEAST SASKATCHEWAN ASSETS
25 Jul 16
Impact - positive as the disposition was done at highly accretive metrics, and significantly reduces the Company's outstanding debt position providing increased financial flexibility as the Company continues to work through its strategic alternatives process
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
10 for 17
09 Jan 17
As always at the start of a year, there are significant uncertainties about the year ahead but I think in 2017, the level of uncertainly has decisively moved up a gear. In fact, a leading economist at the LSE, Ethan Ilzetzki, was recently quoted as saying “I view the current global economic environment as the most uncertain in modern history”. Wow.
The Monthly January 2017
09 Jan 17
Despite all the hullaballoo of the Brexit vote and the subsequent election of Donald Trump as the next US President, the UK stock market prospered last year, especially in the latter few months of 2016. The combination of a depreciating currency – making $ earnings more valuable in relative terms - and the Trump emphasis on infrastructure expenditure drove the stock market higher
Conviction List Q1 2017
05 Jan 17
Since its inception in 2010, the Conviction List has outperformed the market in 11 of 19 periods and a reinvested Conviction List would have returned 260% against a Small Companies index that would have returned 194%. Our Conviction List returned 0.4% over the last quarter; this was set against the benchmark UK Small Companies index that returned 4.0% over the same period.
GMP FirstEnergy ― UK Energy morning research package
10 Jan 17
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