Zargon Oil & Gas Ltd. (the "Company" or "Zargon") (TSX:ZAR) (TSX:ZAR.DB) is pleased to announce the sanctioning of the construction of the Little Bow Alkaline Surfactant Polymer ("ASP") tertiary recovery facility, provide an operational update, provide 2013 guidance and report its 2012 year end reserves. Zargon intends to release its 2012 audited financial results on March 12, 2013, after market close.
Reserves included herein are stated on a gross company working interest basis unless otherwise noted. All reserves information has been prepared in accordance with National Instrument 51-101 Standards of Disclosure ("NI 51-101"). In addition to the detailed information disclosed in this press release, more detailed information will be included in Zargon's 2012 Annual Information Form to be filed on SEDAR (www.sedar.com) and posted on our website (www.zargon.ca) in March 2013.
Based on the independent reserves evaluation conducted by McDaniel effective December 31, 2012, and prepared in accordance with NI 51-101, Zargon had proved and probable reserves of 31.19 million barrels of oil equivalent. Reserve reductions from exploration and development activities (including revisions) and corporate and net property acquisitions/dispositions were negative 0.13 million barrels of oil equivalent.
Zargon's reserves are characterized by a high developed producing component. Proved developed producing reserves represent 93 percent of total proved reserves while proved and probable developed reserves account for 75 percent of total proved and probable reserves. For the Little Bow ASP project, McDaniel has assigned 4.39 million barrels of oil equivalent reserves in the probable undeveloped category, which represents 83 percent of the undeveloped reserves and 14 percent of Zargon's total proved and probable reserves assignment.
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