June 05, 2009 08:58 ET

Zargon Energy Trust Announces Closing of $35 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - June 5, 2009) -


Zargon Energy Trust ("Zargon") (TSX:ZAR.UN) is pleased to announce that it has closed its previously announced offering (the "Offering") of 2,365,000 trust units on a bought deal basis (including 215,000 trust units issued pursuant to the exercise in full of the over-allotment option granted to the underwriters) at $15.00 per unit for total gross proceeds of $35,475,000. The syndicate of underwriters was led by CIBC World Markets Inc. and included Scotia Capital Inc., TD Securities Inc., BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., FirstEnergy Capital Corp., Peters & Co. Limited and Raymond James Ltd.

The net proceeds of the Offering will be used by Zargon to reduce outstanding borrowings under existing credit facilities, to partially fund the 2009 capital expenditure program, and for general corporate purposes.

Purchasers of trust units under the Offering, who continue to hold such trust units, will be eligible to receive the distribution to be paid on July 15, 2009 to holders of record on June 30, 2009.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the net proceeds of the Offering and payment of and eligibility to receive distributions. Although Zargon believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Zargon can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. 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 Zargon's assets; ability to obtain equipment in a timely manner to carry out development activities; ability to market Zargon's oil and natural gas successfully to current and new customers; the impact of increasing competition; ability to obtain financing on acceptable terms; and Zargon's ability to add production and reserves through 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. Zargon's actual results, performance, or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. Zargon can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits will be derive therefrom. The forward-looking information contained in this document is expressly qualified by this cautionary statement. Zargon's 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.


Based in Calgary, Alberta, Zargon's securities trade on the Toronto Stock Exchange and there are currently approximately 22.435 million trust units (ZAR.UN) (after the Offering) and 1.849 million exchangeable shares (ZOG.B) outstanding. After giving effect to the conversion privilege of the exchangeable shares and the May 15, 2009 revised exchange ratio there would be a total of approximately 25.249 million trust units outstanding.

In order to learn more about Zargon, we encourage you to visit Zargon's website at where you will find a current unitholder presentation, financial reports and historical news releases.

Contact Information

  • Zargon Energy Trust
    Mr. C.H. Hansen
    President and Chief Executive Officer
    (403) 264-9992
    Mr. B.C. Heagy
    Executive Vice President and Chief Financial Officer
    (403) 264-9992