ZARGON ENERGY TRUST
TSX : ZAR.UN

ZARGON ENERGY TRUST
Zargon Oil & Gas Ltd.
TSX : ZAR

Zargon Oil & Gas Ltd.

March 04, 2005 13:07 ET

Zargon Energy Trust Announces Increase to Exchangeable Share Ratio


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ZARGON ENERGY TRUST

TSX SYMBOL: ZAR.UN

AND ZARGON OIL & GAS LTD.

TSX SYMBOL: ZOG.B

MARCH 4, 2005 - 13:07 ET

Zargon Energy Trust Announces Increase to Exchangeable
Share Ratio

CALGARY, ALBERTA--(CCNMatthews - March 4, 2005) - Zargon Energy Trust
(TSX:ZAR.UN) ("Zargon") is pleased to announce the increase to the
Exchange Ratio of the exchangeable shares of Zargon Oil & Gas Ltd. from
1.03726 to 1.04292. This increase will be effective on March 15, 2005.

The following are the details of the calculation of the Exchange Ratio:



Five day Effective
Weighted Date Exchange
Average of the Ratio
Record Trading Increase Increase as of
Date of Opening Zargon's Price of in in Effect-
Zargon's Exchange Distribution Zargon's Exchange Exchange ive
Distribution Ratio per Unit Units Ratio (1) Ratio Date
------------------------------------------------------------------------
February 28, March 15,
2005 1.03726 $0.14 $25.64324 0.00566 2005 1.04292

(1) The increase in the Exchange Ratio is calculated by multiplying
Zargon's distribution per unit by the Exchange Ratio immediately
prior to the distribution record date and dividing by the five day
weighted average trading price of Zargon's units.


A holder of exchangeable shares can exchange all or a portion of their
holdings into Zargon Energy Trust Units, at any time, by giving notice
to their investment advisor or Valiant Trust Company at its principal
transfer office at Suite 310, 606 - 4th Street S.W., Calgary, Alberta,
T2P 1T1.

Based in Calgary, Alberta, Zargon's securities trade on the Toronto
Stock Exchange and there are currently 15.665 million trust units
(ZAR.UN) and 2.913 million exchangeable shares (ZOG.B) outstanding.
After giving effect to the conversion privilege of the exchangeable
shares and the March 15, 2005 revised exchange ratio there would be a
total of 18.703 million trust units outstanding.

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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Zargon Energy Trust
    C.H. Hansen
    President and Chief Executive Officer
    or
    B.C. Heagy
    Vice President, Finance and Chief Financial Officer
    Telephone: 403-264-9992
    E-mail: zargon@zargon.ca
    Website:
    www.zargon.ca